Summary
Johnson & Johnson (JNJ) reported strong performance in its 2022 10-K filing, with worldwide sales reaching $94.9 billion, a 1.3% increase driven primarily by operational volume growth, despite negative currency impacts. The company operates across three key segments: Pharmaceutical, MedTech, and Consumer Health. The Pharmaceutical segment saw a 1.7% sales increase, with notable growth in Oncology and Immunology, though offset by declines in Infectious Diseases and Neuroscience. The MedTech segment grew 1.4%, bolstered by strong performance in Interventional Solutions and Vision, though Orthopaedics remained flat operationally. The Consumer Health segment experienced a slight decrease of 0.5%, impacted by supply constraints in Skin Health/Beauty and category declines in Oral Care. Significant investments in R&D, totaling $14.6 billion, underscore the company's commitment to innovation. JNJ's financial health remains robust, with operating cash flow of $21.2 billion. The company is also actively managing its capital structure, including a $5.0 billion share repurchase program and a net debt position of $16.1 billion, largely due to the acquisition of Abiomed. Investors should note the ongoing legal proceedings, particularly those related to talc and opioids, which have ongoing financial implications and reserves. The planned separation of the Consumer Health business into a new publicly traded company (Kenvue) is a significant strategic initiative expected in 2023.
Financial Highlights
55 data points| Revenue | $85.16B |
| Cost of Revenue | $26.55B |
| Gross Profit | $58.61B |
| R&D Expenses | $483.00M |
| SG&A Expenses | $21.51B |
| Operating Income | $13.33B |
| Interest Expense | $276.00M |
| Net Income | $35.15B |
| EPS (Basic) | $13.88 |
| EPS (Diluted) | $13.72 |
| Shares Outstanding (Basic) | 2.53B |
| Shares Outstanding (Diluted) | 2.56B |
Key Highlights
- 1Worldwide sales reached $94.9 billion in 2022, a 1.3% increase driven by operational volume, partially offset by unfavorable currency movements.
- 2The Pharmaceutical segment achieved sales of $52.6 billion, up 1.7%, with Oncology and Immunology showing strong growth, while Infectious Diseases and Neuroscience experienced declines.
- 3The MedTech segment reported sales of $27.4 billion, up 1.4%, driven by Interventional Solutions and Vision, with Orthopaedics remaining flat.
- 4Consumer Health segment sales were $15.0 billion, down 0.5%, impacted by supply chain constraints and competitive pressures.
- 5Research and development expenses totaled $14.6 billion, reflecting continued investment in innovation across all segments.
- 6The company has a pending separation of its Consumer Health business, Kenvue, expected in 2023.
- 7Net earnings were $17.9 billion, with diluted earnings per share of $6.73.