Summary
Johnson & Johnson reported strong revenue growth for the second quarter of 2022, driven by operational increases across its Pharmaceutical and MedTech segments, despite a negative impact from currency fluctuations. Total sales reached $24.0 billion, a 3.0% increase year-over-year, with international sales showing particular strength due to operational growth, even as currency headwinds persisted. Net earnings for the quarter were $4.8 billion, or $1.80 per diluted share, a decrease from the prior year primarily due to an intangible asset impairment charge related to the bermekimab drug development and increased litigation-related expenses. The company continues to navigate a challenging macroeconomic environment, including inflation and supply chain pressures, while also advancing its strategic plan to separate its Consumer Health business.
Financial Highlights
54 data points| Revenue | $20.21B |
| Cost of Revenue | $7.92B |
| Gross Profit | $13.89B |
| SG&A Expenses | $6.23B |
| Operating Income | $4.26B |
| Interest Expense | $38.00M |
| Net Income | $4.81B |
| EPS (Basic) | $1.83 |
| EPS (Diluted) | $1.80 |
| Shares Outstanding (Basic) | 2.63B |
| Shares Outstanding (Diluted) | 2.67B |
Key Highlights
- 1Total sales increased by 3.0% to $24.0 billion in Q2 2022, driven by operational growth of 8.0%.
- 2Pharmaceutical segment sales grew by 6.7% to $13.3 billion, with strong operational increases in Oncology and Infectious Diseases, partially offset by declines in Immunology and Cardiovascular/Metabolism.
- 3MedTech segment sales saw a slight decrease of 1.1% to $6.9 billion, impacted by a 4.5% negative currency effect, though operational growth was 3.4%.
- 4Consumer Health segment sales decreased by 1.3% to $3.8 billion, impacted by supply constraints and regional COVID-19 restrictions.
- 5Net earnings decreased to $4.8 billion ($1.80 per diluted share) from $6.3 billion ($2.35 per diluted share) in the prior year, impacted by an intangible asset impairment charge and increased litigation expenses.
- 6The company continues to plan for the separation of its Consumer Health business, targeting completion in 18-24 months.
- 7Cash flow from operating activities remained strong at $9.6 billion for the first six months of 2022, though cash and cash equivalents decreased to $11.0 billion due to investing and financing activities.