Summary
Johnson & Johnson (JNJ) reported a net loss of $68 million ($0.03 per share) for the first quarter of 2023, a significant shift from the $5.15 billion net earnings ($1.93 per share) in the prior year. This was primarily driven by a substantial charge of $6.9 billion related to the talc settlement proposal, which significantly impacted the "Other (income) expense, net" line item. Despite the net loss, the company's operational performance remained robust. Worldwide sales grew by 5.6% to $24.7 billion, with operational growth of 9.0% driven by strong performances across all segments: Consumer Health (7.4%), Pharmaceutical (4.2%), and MedTech (7.3%). The MedTech segment saw a notable boost from the acquisition of Abiomed. The company also maintained a strong liquidity position with $26.9 billion in cash, cash equivalents, and restricted cash.
Financial Highlights
54 data points| Revenue | $20.89B |
| Cost of Revenue | $6.69B |
| Gross Profit | $14.21B |
| SG&A Expenses | $4.91B |
| Operating Income | -$491.00M |
| Interest Expense | $212.00M |
| Net Income | -$68.00M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 2.61B |
| Shares Outstanding (Diluted) | 2.61B |
Key Highlights
- 1Worldwide sales increased 5.6% to $24.7 billion, with operational growth of 9.0%.
- 2Net loss of $68 million reported, compared to a net profit of $5.15 billion in the prior year, largely due to a $6.9 billion charge related to the talc settlement proposal.
- 3Consumer Health segment sales grew 7.4% to $3.9 billion, driven by strong performance in OTC and Skin Health/Beauty franchises.
- 4Pharmaceutical segment sales increased 4.2% to $13.4 billion, with notable growth in Oncology and Infectious Diseases, partially offset by declines in Immunology and Cardiovascular/Metabolism.
- 5MedTech segment sales rose 7.3% to $7.5 billion, significantly boosted by the inclusion of Abiomed following its acquisition in December 2022.
- 6The company's balance sheet remains strong with $26.9 billion in cash, cash equivalents, and restricted cash.
- 7The planned separation of the Consumer Health business (Kenvue) is progressing, with an IPO planned.
- 8The company announced a new share repurchase program authorization of $5.0 billion, which was completed in the first quarter of 2023.