CORRECTING and REPLACING Johnson & Johnson Reports Q1 2024 Results

Rhea-AI Summary

Johnson & Johnson reported a 2.3% sales growth to $21.4 billion in Q1 2024, with operational growth of 3.9% and adjusted EPS increase of 12.4%. The company raised its Full-Year 2024 operational sales and adjusted EPS guidance. Innovative Medicine and MedTech segments showed positive growth.

Positive

• Johnson & Johnson reported a 2.3% increase in sales to $21.4 billion in Q1 2024.
• Operational growth was 3.9% with adjusted EPS rising by 12.4% to $2.71.
• The company raised its Full-Year 2024 operational sales and adjusted EPS guidance.
• Innovative Medicine segment saw worldwide operational sales growth of 8.3% excluding COVID-19 Vaccine.
• MedTech segment experienced a 6.3% operational sales growth driven by electrophysiology products and Abiomed.
• The company's solid performance in Q1 2024 reflects progress in its portfolio and pipeline, according to Joaquin Duato, Chairman and CEO.
• Johnson & Johnson's impact across healthcare sectors reinforces its position as an innovation powerhouse.

Negative

• None.

• 2024 First-Quarter reported sales growth of 2.3% to $21.4 Billion with operational growth of 3.9%* and adjusted operational growth of 4.0%*
  • Adjusted operational growth excluding COVID-19 Vaccine of 7.7%*

• 2024 First-Quarter Earnings per share (EPS) increased to $2.20 and adjusted EPS increased to $2.71 or 12.4%*
  
  
  
  
• Company increasing the midpoint for Full-Year 2024 operational sales⁵ and adjusted operational EPS guidance

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- In the section titled "Full-Year 2024 Guidance", in the table, row titled "Operational Sales^2,5/ Mid-point", the numbers for the April 2024 column should read: $88.7B – $89.1B / $88.9B (instead of: $88.7B – $89.1B / $88.0B).

The updated release reads:

JOHNSON & JOHNSON REPORTS Q1 2024 RESULTS

Johnson & Johnson (NYSE: JNJ) today announced results for first-quarter 2024. “Johnson & Johnson’s solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline,” said Joaquin Duato, Chairman and Chief Executive Officer. “Our impact across the full spectrum of healthcare is unique in our industry, and the milestones achieved this quarter reinforce our position as an innovation powerhouse.”

Unless otherwise noted, the financial results and earnings guidance included below reflect the continuing operations of Johnson & Johnson.

Overall Financial Results

	Q1
($ in Millions, except EPS)	2024	2023	% Change
Reported Sales	$21,383	$20,894	2.3%
Net Earnings/(Loss)	$5,354	($491)
EPS (Diluted/Basic)6	$2.20	($0.19)
	Q1
Non-GAAP* ($ in Millions, except EPS)	2024	2023	% Change
Operational Sales1,2			3.9%
Adjusted Operational Sales1,3			4.0%
Adjusted Operational Sales ex. COVID-19 Vaccine1,3			7.7%
Adjusted Net Earnings1,4	$6,580	$6,340	3.8%
Adjusted EPS (Diluted)1,4	$2.71	$2.41	12.4%

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
4		Excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
6		Basic shares are used to calculate loss per share in the first quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive
		Note: Values may have been rounded

Regional Sales Results

Q1			% Change
($ in Millions)	2024	2023	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$11,620	$10,782	7.8%	7.8	-	7.9
International	9,763	10,112	(3.4)	(0.3)	(3.1)	(0.3)
Worldwide	$21,383	$20,894	2.3%	3.9	(1.6)	4.0

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
		Note: Values may have been rounded

Segment Sales Results

Q1			% Change
($ in Millions)	2024	2023	Reported	Operational1,2	Currency	Adjusted Operational1,3
Innovative Medicine	$13,562	$13,413	1.1%	2.5	(1.4)	2.5
MedTech	7,821	7,481	4.5	6.3	(1.8)	6.5
Worldwide	$21,383	$20,894	2.3%	3.9	(1.6)	4.0

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
		Values may have been rounded

First Quarter 2024 Segment Commentary:

Operational sales* reflected below excludes the impact of translational currency. Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 8.3%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), CARVYKTI (ciltacabtagene autoleucel), TECVAYLI (teclistamab-cqyv) and Other Oncology in Oncology, UPTRAVI (selexipag) and OPSUMIT (macitentan) in Pulmonary Hypertension, TREMFYA (guselkumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 2.5%*.

MedTech

MedTech worldwide operational sales grew 6.3%* driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, and wound closure products in General Surgery.

Notable New Announcements in the Quarter:

The information contained in this section should be read together with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company’s website at News Releases, as well as Innovative Medicine News Center, MedTech News & Events, www.factsabouttalc.com, and www.LLTManagementInformation.com.

Regulatory	CARVYKTI is the First and Only BCMA-Targeted Treatment Approved by the U.S. FDA for Patients with Relapsed or Refractory Multiple Myeloma Who Have Received At Least One Prior Line of Therapy1	Press Release
	Johnson & Johnson’s nipocalimab granted U.S. FDA Fast Track designation to reduce the risk of fetal neonatal alloimmune thrombocytopenia (FNAIT) in alloimmunized pregnant adults	Press Release
	Biosense Webster Submits Application to U.S. FDA Seeking Approval of the VARIPULSE Platform for the Treatment of Paroxysmal Atrial Fibrillation	Press Release
	U.S. FDA Approves OPSYNVI (macitentan and tadalafil) as the First and Only Once-Daily Single-Tablet Combination Therapy for Patients with Pulmonary Arterial Hypertension (PAH)	Press Release
	U.S. FDA Oncologic Drugs Advisory Committee recommends CARVYKTI (ciltacabtagene autoleucel) for the earlier treatment of patients with relapsed or refractory multiple myeloma	Press Release
	Johnson & Johnson submits supplemental Biologics License Application to U.S. FDA seeking approval of TREMFYA (guselkumab) for the treatment of adults with moderately to severely active ulcerative colitis	Press Release
	Johnson & Johnson submits application to the European Medicines Agency for DARZALEX (daratumumab)-based quadruplet therapy for the treatment of patients with transplant-eligible, newly diagnosed multiple myeloma	Press Release
	RYBREVANT (amivantamab-vmjw) in Combination With Chemotherapy Is the First FDA Approved Therapy for First-line Treatment of Patients With Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations	Press Release
	Janssen Receives Positive CHMP Opinion for CARVYKTI (ciltacabtagene autoleucel; cilta-cel) for Treatment in Earlier Lines of Relapsed and Refractory Multiple Myeloma	Press Release
	TECVAYLI (teclistamab-cqyv) biweekly dosing approved by the U.S. FDA for the treatment of patients with relapsed or refractory multiple myeloma	Press Release
	Johnson & Johnson’s nipocalimab granted U.S. FDA Breakthrough Therapy Designation for the treatment of individuals at high risk for severe hemolytic disease of the fetus and newborn (HDFN)	Press Release
	Johnson & Johnson submits supplemental Biologics License Application to U.S. FDA seeking approval of DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) based regimen for the treatment of patients with transplant-eligible, newly diagnosed multiple myeloma	Press Release
Data Release	Unique molecular properties of nipocalimab enabling differentiated potential in treating generalized myasthenia gravis to be presented at American Academy of Neurology’s 2024 Annual Meeting1	Press Release
	Johnson & Johnson to Showcase its Broad Scientific Leadership and Latest Innovations to Combat Cardiovascular Disease at ACC.241	Press Release
	RYBREVANT (amivantamab-vmjw) data at ELCC advance Johnson & Johnson’s ambition to transform the standard of care for patients with EGFR-mutated non-small cell lung cancer	Press Release
	New data shows JNJ-2113, the first and only investigational targeted oral peptide, maintained skin clearance in moderate-to-severe plaque psoriasis through one year	Press Release
	Investigational targeted oral peptide JNJ-2113 demonstrated positive results in moderate-to-severe plaque psoriasis in Phase 2b study published in New England Journal of Medicine	Press Release
	Johnson & Johnson reports positive topline results for Nipocalimab from a Phase 3 pivotal study in generalized myasthenia gravis (gMG) and a Phase 2 study in Sjögren’s Disease (SjD)	Press Release
	Johnson & Johnson Highlights Ambition to Transform the Treatment of Prostate Cancer and Bladder Cancer through Data Presentations at ASCO GU	Press Release
Product Launch	Biosense Webster Announces CE Mark approval in Europe for VARIPULSE Pulsed Field Ablation (PFA) Platform	Press Release
Other	Johnson & Johnson to Acquire Shockwave Medical1	Press Release
	Johnson & Johnson Completes Acquisition of Ambrx	Press Release

1 Subsequent to the quarter

Full-Year 2024 Guidance:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

($ in Billions, except EPS)	April 2024	January 2024
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	5.5% – 6.0% / 5.8%	5.0% – 6.0% / 5.5%
Operational Sales2,5/ Mid-point Change vs. Prior Year / Mid-point	$88.7B – $89.1B / $88.9B 5.5% – 6.0% / 5.8%	$88.2B – $89.0B / $88.6B 5.0% – 6.0% / 5.5%
Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point	$88.0B – $88.4B / $88.2B 4.7% – 5.2% / 5.0%	$87.8B – $88.6B / $88.2B 4.5% – 5.5% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point Change vs. Prior Year / Mid-point	$10.60 – $10.75 / $10.68 6.9% – 8.4% / 7.7%	$10.55 – $10.75 / $10.65 6.4% – 8.4% / 7.4%
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point	$10.57 – $10.72 / $10.65 6.6% – 8.1% / 7.4%	$10.55 – $10.75 / $10.65 6.4% – 8.4% / 7.4%

1		Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
2		Non-GAAP financial measure; excludes the impact of translational currency
3		Calculated using Euro Average Rate: April 2024 = $1.08 and January 2024 = $1.09 (Illustrative purposes only)
4		Non-GAAP financial measure; excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
		Note: Percentages may have been rounded

Other modeling considerations will be provided on the webcast.

Webcast Information:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.

About Johnson & Johnson:

At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at https://www.jnj.com/.

Non-GAAP Financial Measures:

* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results.

Note to Investors Concerning Forward-Looking Statements:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc; and Kenvue’s ability to succeed as a standalone publicly traded company. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FIRST QUARTER
						Percent Change
	2024			2023		Total				Operations			Currency
Sales to customers by
segment of business
Innovative Medicine (1)
U.S.		7,612		7,023		8.4				8.4			-
International		5,950		6,390		(6.9	)			(4.0	)		(2.9	)
		13,562		13,413		1.1				2.5			(1.4	)
Innovative Medicine excluding COVID-19 Vaccine (1)
U.S.		7,612		7,023		8.4				8.4			-
International		5,925		5,643		5.0				8.3			(3.3	)
		13,537		12,666		6.9				8.3			(1.4	)
MedTech
U.S.		4,008		3,759		6.6				6.6			-
International		3,813		3,722		2.4				6.1			(3.7	)
		7,821		7,481		4.5				6.3			(1.8	)
U.S.		11,620		10,782		7.8				7.8			-
International		9,763		10,112		(3.4	)			(0.3	)		(3.1	)
Worldwide		21,383		20,894		2.3				3.9			(1.6	)
U.S.		11,620		10,782		7.8				7.8			-
International		9,738		9,365		4.0				7.4			(3.4	)
Worldwide excluding COVID-19 Vaccine (1)	$	21,358		20,147		6.0		%		7.6			(1.6	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales information schedules

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FIRST QUARTER
						Percent Change
	2024			2023		Total				Operations			Currency
Sales to customers by
geographic area
U.S.	$	11,620		10,782		7.8		%		7.8			-
Europe		5,163		5,590		(7.6	)			(7.7	)		0.1
Western Hemisphere excluding U.S.		1,194		1,076		11.0				21.3			(10.3	)
Asia-Pacific, Africa		3,406		3,446		(1.1	)			5.0			(6.1	)
International		9,763		10,112		(3.4	)			(0.3	)		(3.1	)
Worldwide	$	21,383		20,894		2.3		%		3.9			(1.6	)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FIRST QUARTER
						Percent Change
	2024			2023		Total				Operations			Currency
Sales to customers by
geographic area (ex. COVID-19 Vaccine)
U.S.*	$	11,620		10,782		7.8		%		7.8			-
Europe(1)		5,138		4,843		6.1				6.0			0.1
Western Hemisphere excluding U.S.*		1,194		1,076		11.0				21.3			(10.3	)
Asia-Pacific, Africa*		3,406		3,446		(1.1	)			5.0			(6.1	)
International		9,738		9,365		4.0				7.4			(3.4	)
Worldwide	$	21,358		20,147		6.0		%		7.6			(1.6	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales information schedules
*No COVID-19 Vaccine sales

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	FIRST QUARTER
	2024							2023							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	21,383			100.0			$	20,894			100.0			2.3
Cost of products sold		6,511			30.4				6,687			32.0			(2.6	)
Gross Profit		14,872			69.6				14,207			68.0			4.7
Selling, marketing and administrative expenses		5,257			24.6				4,906			23.5			7.2
Research and development expense		3,542			16.6				3,455			16.6			2.5
In-process research and development impairments		-			-				49			0.2
Interest (income) expense, net		(209	)		(1.0	)			14			0.1
Other (income) expense, net		(322	)		(1.5	)			6,940			33.2
Restructuring		164			0.8				130			0.6
Earnings/(loss) before provision for taxes on income		6,440			30.1				(1,287	)		(6.2	)
Provision for/(Benefit from) taxes on income		1,086			5.1				(796	)		(3.9	)
Net earnings/(loss) from Continuing Operations	$	5,354			25.0			$	(491	)		(2.3	)
Net earnings from Discontinued Operations, net of tax		-							423
Net earnings/(loss)	$	5,354						$	(68	)
Net earnings (loss) per share (Diluted/Basic) from Continuing Operations	$	2.20						$	(0.19	)
Net earnings per share (Diluted) from Discontinued Operations	$	-						$	0.16
Average shares outstanding (Diluted/Basic)		2,430.1							2,605.5		*
Effective tax rate from Continuing Operations		16.9		%					61.8		%
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations	$	7,877			36.8			$	7,536			36.1			4.5
Net earnings from Continuing Operations	$	6,580			30.8			$	6,340			30.3			3.8
Net earnings per share (Diluted) from Continuing Operations	$	2.71						$	2.41						12.4
Average shares outstanding (Diluted)		2,430.1							2,634.3
Effective tax rate from Continuing Operations		16.5		%					15.9		%
*Basic shares are used to calculate loss per share in the first quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
			First Quarter
	(Dollars in Millions Except Per Share Data)		2024			2023
	Net Earnings/(loss) from Continuing Operations, after tax- as reported		$5,354			($491	)
	Pre-tax Adjustments
	Litigation related		-			6,900
	Intangible Asset Amortization expense		1,078			1,122
	COVID-19 Vaccine related costs 1		9			444
	Restructuring related 2		171			130
	Medical Device Regulation 3		51			64
	Acquisition, integration and divestiture related		148			42
	(Gains)/losses on securities		(20	)		72
	IPR&D impairments		-			49
	Tax Adjustments
	Tax impact on special item adjustments 4		(229	)		(1,980	)
	Tax legislation and other tax related		18			(12	)
	Adjusted Net Earnings from Continuing Operations, after tax		$6,580			$6,340
	Average shares outstanding (Diluted)		2,430.1			2,634.3
	Adjusted net earnings per share from Continuing Operations (Diluted)		$2.71			$2.41
	Operational adjusted net earnings per share from Continuing Operations (Diluted)		$2.72

			Notes:
	1		COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.
	2		In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expenses of $144 million in the fiscal first quarter of 2024 and $130 million in the fiscal first quarter of 2023 include the termination of partnered and non-partnered program costs and asset impairments.
			In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expenses of $27 million in the fiscal first quarter of 2024 primarily includes costs related to market and product exits.
	3		European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which will be completed during 2024.
	4		The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
FIRST QUARTER 2024 ACTUAL vs. 2023 ACTUAL
Segments
		Innovative Medicine		MedTech		Total
WW As Reported		1.1%		4.5%		2.3%
U.S.		8.4%		6.6%		7.8%
International		(6.9)%		2.4%		(3.4)%
WW Currency		(1.4)		(1.8)		(1.6)
U.S.		-		-		-
International		(2.9)		(3.7)		(3.1)
WW Operational		2.5%		6.3%		3.9%
U.S.		8.4%		6.6%		7.8%
International		(4.0)%		6.1%		(0.3)%
All Other Acquisitions and Divestitures (A&D)		0.0		0.2		0.1
U.S.		0.0		0.2		0.1
International		0.0		0.1		0.0
WW Adjusted Operational Ex A&D		2.5%		6.5%		4.0%
U.S.		8.4%		6.8%		7.9%
International		(4.0)%		6.2%		(0.3)%
COVID-19 Vaccine		5.8				3.7
U.S.		0.0				0.0
International		12.3				7.7
WW Adjusted Operational Ex A&D & COVID-19 Vaccine		8.3%		6.5%		7.7%
U.S.		8.4%		6.8%		7.9%
International		8.3%		6.2%		7.4%
Note: Percentages are based on actual, non-rounded figures and may not sum

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
							% Change
INNOVATIVE MEDICINE SEGMENT (2)		2024			2023		Reported	Operational (1)	Currency
IMMUNOLOGY
US		$	2,453			2,448	0.2%	0.2%	-
Intl			1,794			1,664	7.9%	11.0%	-3.1%
WW			4,247			4,112	3.3%	4.6%	-1.3%
REMICADE
US			266			276	-3.9%	-3.9%	-
US Exports (3)			27			41	-32.7%	-32.7%	-
Intl			141			170	-17.2%	-14.2%	-3.0%
WW			434			487	-10.9%	-9.9%	-1.0%
SIMPONI / SIMPONI ARIA
US			254			271	-6.2%	-6.2%	-
Intl			299			266	12.4%	20.0%	-7.6%
WW			554			537	3.0%	6.8%	-3.8%
STELARA
US			1,396			1,451	-3.8%	-3.8%	-
Intl			1,055			993	6.2%	8.2%	-2.0%
WW			2,451			2,444	0.3%	1.1%	-0.8%
TREMFYA
US			509			406	25.4%	25.4%	-
Intl			299			234	27.9%	31.5%	-3.6%
WW			808			640	26.3%	27.6%	-1.3%
OTHER IMMUNOLOGY
US			0			3	*	*	-
Intl			0			0	-	-	-
WW			0			3	*	*	-
INFECTIOUS DISEASES
US			324			392	-17.4%	-17.4%	-
Intl			497			1,193	-58.4%	-58.5%	0.1%
WW			821			1,586	-48.3%	-48.3%	0.0%
COVID-19 VACCINE
US			0			0	-	-	-
Intl			25			747	-96.6%	-96.7%	0.1%
WW			25			747	-96.6%	-96.7%	0.1%
EDURANT / rilpivirine
US			8			9	-10.9%	-10.9%	-
Intl			315			271	16.6%	15.7%	0.9%
WW			323			280	15.7%	14.8%	0.9%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US			314			378	-16.9%	-16.9%	-
Intl			104			99	5.5%	5.5%	0.0%
WW			418			477	-12.3%	-12.3%	0.0%
OTHER INFECTIOUS DISEASES
US			2			5	-68.8%	-68.8%	-
Intl			52			77	-32.8%	-30.6%	-2.2%
WW			53			82	-35.1%	-33.1%	-2.0%
	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
							% Change
		2024			2023		Reported	Operational (1)	Currency
NEUROSCIENCE
US			1,054			978	7.8%	7.8%	-
Intl			749			826	-9.3%	-4.4%	-4.9%
WW			1,803			1,804	0.0%	2.2%	-2.2%
CONCERTA / Methylphenidate
US			41			70	-41.2%	-41.2%	-
Intl			136			136	-0.1%	4.5%	-4.6%
WW			177			206	-14.1%	-11.1%	-3.0%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US			765			713	7.2%	7.2%	-
Intl			292			331	-11.8%	-8.7%	-3.1%
WW			1,056			1,044	1.2%	2.2%	-1.0%
SPRAVATO
US			191			111	71.5%	71.5%	-
Intl			34			20	76.1%	74.8%	1.3%
WW			225			131	72.2%	72.0%	0.2%
OTHER NEUROSCIENCE
US			58			84	-31.1%	-31.1%	-
Intl			287			339	-15.5%	-8.4%	-7.1%
WW			345			423	-18.5%	-12.9%	-5.6%
ONCOLOGY
US			2,383			1,889	26.2%	26.2%	-
Intl			2,430			2,223	9.3%	12.6%	-3.3%
WW			4,814			4,112	17.1%	18.8%	-1.7%
CARVYKTI
US			140			70	99.8%	99.8%	-
Intl			16			2	*	*	*
WW			157			72	*	*	*
DARZALEX
US			1,464			1,191	22.9%	22.9%	-
Intl			1,228			1,072	14.5%	19.0%	-4.5%
WW			2,692			2,264	18.9%	21.0%	-2.1%
ERLEADA
US			285			249	14.1%	14.1%	-
Intl			404			293	38.0%	40.6%	-2.6%
WW			689			542	27.0%	28.4%	-1.4%
IMBRUVICA
US			265			270	-1.5%	-1.5%	-
Intl			518			557	-7.0%	-5.6%	-1.4%
WW			784			827	-5.2%	-4.3%	-0.9%
TECVAYLI(4)
US			101			57	76.7%	76.7%	-
Intl			33			6	*	*	*
WW			133			63	*	*	*
ZYTIGA / abiraterone acetate
US			9			16	-41.3%	-41.3%	-
Intl			172			229	-24.8%	-20.7%	-4.1%
WW			181			245	-25.9%	-22.1%	-3.8%
OTHER ONCOLOGY(4)
US			119			35	*	*	-
Intl			60			64	-6.1%	-5.6%	-0.5%
WW			178			99	80.2%	80.5%	-0.3%
	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
							% Change
		2024			2023		Reported	Operational (1)	Currency
PULMONARY HYPERTENSION
US			766			600	27.5%	27.5%	-
Intl			283			272	4.1%	10.9%	-6.8%
WW			1,049			872	20.2%	22.4%	-2.2%
OPSUMIT
US			356			273	30.4%	30.4%	-
Intl			169			167	0.8%	4.6%	-3.8%
WW			524			440	19.1%	20.6%	-1.5%
UPTRAVI
US			392			304	29.0%	29.0%	-
Intl			76			58	30.7%	38.6%	-7.9%
WW			468			362	29.2%	30.5%	-1.3%
OTHER PULMONARY HYPERTENSION
US			18			23	-24.6%	-24.6%	-
Intl			39			47	-16.9%	-1.0%	-15.9%
WW			56			70	-19.5%	-8.9%	-10.6%
CARDIOVASCULAR / METABOLISM / OTHER
US			631			715	-11.7%	-11.7%	-
Intl			197			212	-7.0%	-6.8%	-0.2%
WW			829			927	-10.6%	-10.5%	-0.1%
XARELTO
US			518			578	-10.4%	-10.4%	-
Intl			-			-	-	-	-
WW			518			578	-10.4%	-10.4%	-
OTHER
US			114			137	-17.1%	-17.1%	-
Intl			197			212	-7.0%	-6.8%	-0.2%
WW			311			349	-11.0%	-10.9%	-0.1%
TOTAL INNOVATIVE MEDICINE
US			7,612			7,023	8.4%	8.4%	-
Intl			5,950			6,390	-6.9%	-4.0%	-2.9%
WW		$	13,562			13,413	1.1%	2.5%	-1.4%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
							% Change
MEDTECH SEGMENT (2)		2024			2023		Reported	Operational (1)	Currency
CARDIOVASCULAR (5)
US		$	1,025			863	18.8%	18.8%	-
Intl			781			640	22.1%	27.6%	-5.5%
WW			1,806			1,503	20.2%	22.5%	-2.3%
ELECTROPHYSIOLOGY
US			692			571	21.3%	21.3%	-
Intl			652			522	24.9%	30.9%	-6.0%
WW			1,344			1,092	23.0%	25.9%	-2.9%
ABIOMED
US			303			264	15.0%	15.0%	-
Intl			67			60	12.4%	14.7%	-2.3%
WW			371			324	14.5%	15.0%	-0.5%
OTHER CARDIOVASCULAR (5)
US			30			28	3.3%	3.3%	-
Intl			62			58	6.9%	11.5%	-4.6%
WW			92			87	5.7%	8.8%	-3.1%
ORTHOPAEDICS
US			1,448			1,363	6.2%	6.2%	-
Intl			892			881	1.3%	2.7%	-1.4%
WW			2,340			2,245	4.3%	4.8%	-0.5%
HIPS
US			270			241	12.1%	12.1%	-
Intl			152			149	1.7%	3.3%	-1.6%
WW			422			390	8.1%	8.7%	-0.6%
KNEES
US			242			226	6.9%	6.9%	-
Intl			160			142	12.3%	13.1%	-0.8%
WW			401			368	9.0%	9.3%	-0.3%
TRAUMA
US			504			491	2.8%	2.8%	-
Intl			261			267	-2.3%	-1.1%	-1.2%
WW			765			757	1.0%	1.4%	-0.4%
SPINE, SPORTS & OTHER
US			432			406	6.5%	6.5%	-
Intl			320			323	-0.9%	0.9%	-1.8%
WW			752			729	3.2%	4.0%	-0.8%
	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
							% Change
		2024			2023		Reported	Operational (1)	Currency
SURGERY
US			987			975	1.2%	1.2%	-
Intl			1,429			1,459	-2.0%	2.3%	-4.3%
WW			2,416			2,434	-0.7%	1.9%	-2.6%
ADVANCED
US			446			444	0.2%	0.2%	-
Intl			641			673	-4.7%	-0.7%	-4.0%
WW			1,087			1,118	-2.8%	-0.3%	-2.5%
GENERAL
US			542			531	2.1%	2.1%	-
Intl			788			785	0.3%	4.8%	-4.5%
WW			1,330			1,316	1.0%	3.7%	-2.7%
VISION
US			547			558	-1.8%	-1.8%	-
Intl			710			743	-4.4%	-1.1%	-3.3%
WW			1,258			1,300	-3.3%	-1.4%	-1.9%
CONTACT LENSES / OTHER
US			438			444	-1.4%	-1.4%	-
Intl			472			509	-7.4%	-3.1%	-4.3%
WW			910			953	-4.6%	-2.3%	-2.3%
SURGICAL
US			110			114	-3.7%	-3.7%	-
Intl			238			233	2.2%	3.4%	-1.2%
WW			348			347	0.3%	1.1%	-0.8%
TOTAL MEDTECH
US			4,008			3,759	6.6%	6.6%	-
Intl			3,813			3,722	2.4%	6.1%	-3.7%
WW		$	7,821		$	7,481	4.5%	6.3%	-1.8%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

(3) Reported as U.S. sales

(4) See Supplemental Sales Information Schedule

(5) Previously referred to as Interventional Solutions

Supplemental Sales Information (Unaudited)
(Dollars in Millions)
Schedule 1
		FIRST QUARTER
								Percent Change
		2024				2023		Total				Operations			Currency
Innovative Medicine
U.S.		$	7,612			7,023		8.4		%		8.4			-
International			5,950			6,390		(6.9	)			(4.0	)		(2.9	)
Worldwide			13,562			13,413		1.1				2.5			(1.4	)
COVID-19 Vaccine
U.S.			-			-		-				-			-
International			25			747		(96.6	)			(96.7	)		0.1
Worldwide			25			747		(96.6	)			(96.7	)		0.1
Innovative Medicine excluding COVID-19 Vaccine
U.S.			7,612			7,023		8.4				8.4			-
International			5,925			5,643		5.0				8.3			(3.3	)
Worldwide			13,537			12,666		6.9				8.3			(1.4	)
Worldwide
U.S.			11,620			10,782		7.8				7.8			-
International			9,763			10,112		(3.4	)			(0.3	)		(3.1	)
Worldwide			21,383			20,894		2.3				3.9			(1.6	)
COVID-19 Vaccine
U.S.			-			-		-				-			-
International			25			747		(96.6	)			(96.7	)		0.1
Worldwide			25			747		(96.6	)			(96.7	)		0.1
Worldwide
U.S.			11,620			10,782		7.8				7.8			-
International			9,738			9,365		4.0				7.4			(3.4	)
Worldwide excluding COVID-19 Vaccine		$	21,358			20,147		6.0		%		7.6			(1.6	)
Europe		$	5,163			5,590		(7.6	)	%		(7.7	)		0.1
Europe COVID-19 Vaccine Sales			25			747		(96.6	)			(96.7	)		0.1
Europe excluding COVID-19 Vaccine Sales		$	5,138			4,843		6.1		%		6.0			0.1

Schedule 2
	2022				2023								2023
		Full Year			Q1		Q2		Q3		Q4			Full Year
INNOVATIVE MEDICINE SEGMENT (1)
ONCOLOGY
TECVAYLI
US		12			57		82		93		102			334
INTL		3			6		12		19		24			61
WW		15			63		94		112		126			395
OTHER ONCOLOGY
US		144			35		40		50		90			215
INTL		280			64		80		67		58			269
WW		423			99		120		117		148			484
Note: Columns and rows within tables may not add due to rounding
(1) Unaudited

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q1 YTD - Income Before Tax and Research & Development Expense by Segment*
Dollars in Millions
		Innovative Medicine						MedTech						Unallocated							Worldwide Total
		2024			2023			2024			2023			2024			2023				2024			2023
Reported Income Before Tax by Segment From Continuing Operations	$	4,969			4,402			1,520			1,409			(49	)		(7,098	)			6,440			(1,287	)
% to Sales		36.6	%		32.8	%		19.4	%		18.8	%		-0.2	%		-34.0	%			30.1	%		-6.2	%
Intangible asset amortization expense		698			739			380			383			-			-				1,078			1,122
In-process research and development impairments		-			-			-			49			-			-				-			49
Litigation related		-			-			-			-			-			6,900				-			6,900
Loss/(gain) on securities		(55	)		38			22			34			13			-				(20	)		72
Restructuring related		144			130			27			-			-			-				171			130
Acquisition, integration and divestiture related		47			-			61			42			40			-				148			42
Medical Device Regulation		-			-			51			64			-			-				51			64
COVID-19 Vaccine related costs		9			444			-			-			-			-				9			444
Adjusted Income Before Tax by Segment From Continuing Operations	$	5,812			5,753			2,061			1,981			4			(198	)			7,877			7,536
% to Sales		42.9	%		42.9	%		26.4	%		26.5	%		0.0	%		-0.9	%			36.8	%		36.1	%
*Estimated as of 4/16/2024
As Reported Research and development expense	$	2,896			2,778			646			677										3,542			3,455
% to Sales		21.4	%		20.7	%		8.3	%		9.1	%									16.6	%		16.6	%

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Year to Date
	First Quarter March 31, 2024 GAAP					Intangible asset amortization			Litigation related			In-process research and development impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Tax legislation and other tax related			First Quarter March 31, 2024 Non-GAAP
Cost of products sold	$	6,511				(1,078	)								(7	)								(20	)		(2	)		-			5,404
Selling, marketing and admin expenses		5,257																						(4	)								5,253
Research and development expense		3,542																(18	)					(27	)		(7	)					3,490
Other (Income) / Expense		(322	)			-			-						-			(130	)		20			-			-						(432	)
In-process research and development impairments		-										-																					-
Restructuring		164													(164	)																	-
Provision for taxes on income		1,086				148			-			-			39			38			(7	)		9			2			(18	)		1,297
Net Earnings from Continuing Operations		5,354				930			-			-			132			110			(13	)		42			7			18			6,580
	First Quarter April 2, 2023 GAAP					Intangible asset amortization			Litigation related			In-process research and development impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Tax legislation and other tax related			First Quarter April 2, 2023 Non-GAAP
Cost of products sold	$	6,687				(1,118	)								-									(23	)		(206	)		-			5,340
Selling, marketing and admin expenses		4,906																						(7	)								4,899
Research and development expense		3,455																(16	)					(34	)		(16	)					3,389
Other (Income) / Expense		6,940				(4	)		(6,900	)					-			(26	)		(72	)					(222	)					(284	)
In-process research and development impairments		49										(49	)																				-
Restructuring		130													(130	)																	-
Provision for (Benefit from) taxes on income		(796	)			177			1,622			11			32			5			16			12			105			12			1,196
Net Earnings (Loss) from Continuing Operations		(491	)			945			5,278			38			98			37			56			52			339			(12	)		6,340

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240416019157/en/

Media contact:

Tesia Williams

media-relations@its.jnj.com

Investor contact:

Jessica Moore

investor-relations@its.jnj.com

Source: Johnson & Johnson

FAQ

What was Johnson & Johnson's reported sales growth in Q1 2024?

Johnson & Johnson reported a 2.3% sales growth to $21.4 billion in Q1 2024.

How much was the operational growth in Q1 2024 for Johnson & Johnson?

The operational growth for Johnson & Johnson in Q1 2024 was 3.9%.

What was the adjusted EPS increase in Q1 2024 for Johnson & Johnson?

The adjusted EPS increased by 12.4% to $2.71 for Johnson & Johnson in Q1 2024.

Which segments showed positive growth in Q1 2024 for Johnson & Johnson?

Innovative Medicine and MedTech segments showed positive growth in Q1 2024 for Johnson & Johnson.

Who is the Chairman and CEO of Johnson & Johnson?

Joaquin Duato is the Chairman and CEO of Johnson & Johnson.

What impact did Johnson & Johnson's performance in Q1 2024 reflect?

Johnson & Johnson's performance in Q1 2024 reflected progress in its portfolio and pipeline.

What position does Johnson & Johnson hold in the industry according to the PR?

Johnson & Johnson's milestones achieved in Q1 2024 reinforce its position as an innovation powerhouse.