Johnson & Johnson Reports Q1 2023 Results

Rhea-AI Summary

Johnson & Johnson (JNJ) reported a 5.6% increase in first-quarter 2023 sales, reaching $24.7 billion. The operational growth was 9.0%*, with adjusted operational growth at 7.6%*. The basic loss per share was ($0.03), showing a 101.6% decrease due to a one-time charge, while adjusted earnings per share (EPS) rose 0.4%* to $2.68. The company is increasing its 2023 full-year guidance for adjusted operational sales and EPS. Key segment performances included Consumer Health, up 11.3%*, Pharmaceuticals, up 7.2%*, and MedTech, with a 6.4%* increase. Positive developments included CHMP opinion for AKEEGA and promising results for CARVYKTI and Nipocalimab studies.

Positive

• 5.6% increase in reported sales to $24.7 billion.
• Adjusted EPS rose 0.4% to $2.68.
• Consumer Health segment grew 11.3%, led by OTC products.
• Pharmaceuticals segment sales increased 7.2%, driven by key drugs.
• MedTech segment sales grew 6.4%, bolstered by the Abiomed acquisition.
• Increased 2023 full-year guidance for sales and EPS.

Negative

• Basic loss per share was ($0.03), a significant decrease attributed to a one-time charge.
• Net earnings fell drastically from $5,149 million to ($68 million).
• Decline in sales for certain key pharmaceutical products.

• 2023 First-Quarter reported sales growth of 5.6% to $24.7 Billion with operational growth of 9.0%* and adjusted operational growth of 7.6%*
• 2023 First-Quarter basic loss per share of ($0.03) decreasing 101.6% due to a special one-time charge, with adjusted earnings per share (EPS) of $2.68 increasing by 0.4%*
• Company is increasing 2023 full-year guidance midpoints for adjusted operational sales and adjusted operational EPS

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for first-quarter 2023. “Our first quarter results demonstrate strong performance across all three segments of our business and reflect the dedication of Johnson & Johnson colleagues around the world,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “With this momentum, I look forward to the remainder of the year, one filled with exciting catalysts that will create both near- and long-term value for patients and all of our stakeholders.”

OVERALL FINANCIAL RESULTS

	Q1
($ in Millions, except EPS)	2023	2022	% Change
Reported Sales	$24,746	$23,426	5.6%
Net Earnings/(Loss)	($68)	$5,149	(101.3)%
EPS (basic/diluted)5	($0.03)	$1.93	(101.6)%
	Q1
Non-GAAP* ($ in Millions, except EPS)	2023	2022	% Change
Operational Sales1,2			9.0%
Adjusted Operational Sales1,3			7.6%
Adjusted Net Earnings1,4	$7,068	$7,129	(0.9)%
Adjusted EPS (diluted)1,4	$2.68	$2.67	0.4%

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		Basic shares are used to calculate loss per share 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)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$12,517	$11,414	9.7%	9.7	-	7.4
International	12,229	12,012	1.8	8.3	(6.5)	7.9
Worldwide	$24,746	$23,426	5.6%	9.0	(3.4)	7.6

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)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer Health	$ 3,852	$ 3,586	7.4%	11.3	(3.9)	11.3
Pharmaceutical	13,413	12,869	4.2	7.2	(3.0)	7.2
MedTech	7,481	6,971	7.3	11.0	(3.7)	6.4
Worldwide	$ 24,746	$ 23,426	5.6%	9.0	(3.4)	7.6

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

FIRST QUARTER 2023 SEGMENT COMMENTARY:
Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Consumer Health
Consumer Health worldwide adjusted operational sales increased 11.3%* largely driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, upper respiratory products, IMODIUM in digestive health products and international smoking cessation products. Additional contributors to growth were NEUTROGENA and AVEENO in Skin Health/Beauty products and JOHNSON’s in Baby Care products.

Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 7.2%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, CARVYKTI (ciltacabtagene autoleucel), a BCMA-directed CAR-T immunotherapy for the treatment of patients with relapsed or refractory multiple myeloma, and XARELTO (rivaroxaban), a direct oral anticoagulant. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the prevention of the SARS-CoV-2 Virus. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and ZYTIGA (abiraterone acetate), an oral, once daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

MedTech
MedTech worldwide adjusted operational sales grew 6.4%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, wound closure products in General Surgery, and knees in Orthopaedics. MedTech worldwide operational sales grew 11.0%*, with the acquisition of Abiomed contributing 4.6%.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction 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 Investors section of the company’s website at news releases, as well as www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

Regulatory	Janssen Receives Positive CHMP Opinion for AKEEGA (Niraparib and Abiraterone Acetate Dual Action Tablet) Plus Prednisone or Prednisolone for the Treatment of Adult Patients with BRCA1/2 Gene-Mutated Metastatic Castration Resistant Prostate Cancer	Press Release
	Janssen Submits New Drug Application to the U.S. Food and Drug Administration Seeking Approval of Niraparib and Abiraterone Acetate Dual-Action Tablet, Plus Prednisone, as a First-Line Targeted Treatment for Patients with Metastatic Castration-Resistant Prostate Cancer with BRCA Gene Mutations	Press Release
Data Release	Janssen Announces Unblinding of Phase 3 CARTITUDE-4 Study of CARVYKTI (cilta-cel) as Primary Endpoint Met in Treatment of Patients with Relapsed and Refractory Multiple Myeloma	Press Release
	Late Breaking Data on Pulmonary Vein Isolation with HELIOSTAR Balloon Ablation Catheter Presented at AF Symposium 2023	Press Release
	First Look at Data on Biosense Webster’s Investigational Pulsed Field Ablation Platform Presented at AF Symposium 2023	Press Release
	Janssen Reports Positive Topline Phase 2 Results for Nipocalimab in Pregnant Individuals at High Risk for Severe Hemolytic Disease of the Fetus and Newborn (HDFN)	Press Release
	Janssen Data at ASCO GU Support Ambition to Transform Treatment of Prostate and Bladder Cancer Through Precision Medicine and Early Intervention	Press Release
	TREMFYA (guselkumab) Demonstrates a Differentiated Binding Mechanism from Risankizumab in In Vitro Studies	Press Release
	New STELARA (ustekinumab) Long-Term Data Support its Established Safety Profile in Inflammatory Bowel Disease and Durable Efficacy in Ulcerative Colitis	Press Release
	Late-Breaking Phase 3 A DUE Data Show Investigational Single Tablet Combination Therapy of Macitentan and Tadalafil Significantly Improves Pulmonary Hemodynamics versus Monotherapy in Patients with Pulmonary Arterial Hypertension (PAH)	Press Release
	TREMFYA (guselkumab) Real-World Data Analyses Show Greater Treatment Persistence Than IL-17s in Both Bio-naïve and Bio-experienced Patients Living With Moderate to Severe Plaque Psoriasis	Press Release
	New RYBREVANT (amivantamab-vmjw) Data Showed Long-Term Clinical Response and Safety in Patients with Advanced Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations Who Have Failed Prior Platinum-Based Chemotherapy	Press Release
Other	Johnson & Johnson Subsidiary LTL Management LLC (“LTL”) Re-Files for Voluntary Chapter 11 to Equitably Resolve All Current and Future Talc Claims1	Press Release
	Johnson & Johnson Appoints Dr. John Reed as Executive Vice President, Pharmaceuticals, R&D	Press Release
	Johnson & Johnson Names Dr. Paula A. Johnson, President of Wellesley College, to its Board of Directors	Press Release
	Johnson & Johnson Announces Pricing of $7.75 Billion of Senior Notes Issued by Kenvue Inc.	Press Release
	Janssen Provides Portfolio Update	Press Release
	ERLEADA (apalutamide), First-and-Only Next-Generation Androgen Receptor Inhibitor with Once-Daily, Single-Tablet Option, Now Available in the U.S.1	Press Release

1 Subsequent to the quarter

FULL-YEAR 2023 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 2023	January 2023
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	4.5% – 5.5% / 5.0%	3.5% – 4.5% / 4.0%
Operational Sales2,5/ Mid-point2,5 Change vs. Prior Year / Mid-point	$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%	$96.9B – $97.9B / $97.4B 4.5% – 5.5% / 5.0%
Estimated Reported Sales3,5/ Mid-point3,5 Change vs. Prior Year / Mid-point	$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%	$96.9B – $97.9B / $97.4B 4.5% – 5.5% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4 Change vs. Prior Year / Mid-point	$10.50 – $10.60 / $10.55 3.5% – 4.5% / 4.0%	$10.40 – $10.60 / $10.50 2.5% – 4.5% / 3.5%
Adjusted EPS (Diluted)3,4 / Mid-point3,4 Change vs. Prior Year / Mid-point	$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%	$10.45 – $10.65 / $10.55 3.0% – 5.0% / 4.0%

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: January 2023 = $1.08 and April 2023 = $1.10 (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 Investors section of the company's website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest, most diversified healthcare products company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

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 Investors 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, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors 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, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. 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 satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; and the New Consumer Health Company’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 January 1, 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
	2023			2022		Total			Operations		Currency
Sales to customers by
segment of business
Consumer Health
U.S.	$	1,735		1,557		11.4		%	11.4		-
International		2,117		2,029		4.4			11.3		(6.9	)
		3,852		3,586		7.4			11.3		(3.9	)
Pharmaceutical (1)
U.S.		7,023		6,632		5.9			5.9		-
International		6,390		6,237		2.4			8.6		(6.2	)
		13,413		12,869		4.2			7.2		(3.0	)
Pharmaceutical excluding COVID-19 Vaccine (1)
U.S.		7,023		6,557		7.1			7.1		-
International		5,643		5,855		(3.6	)		2.4		(6.0	)
		12,666		12,412		2.0			4.9		(2.9	)
MedTech (1)
U.S.		3,759		3,225		16.6			16.6		-
International		3,722		3,746		(0.6	)		6.2		(6.8	)
		7,481		6,971		7.3			11.0		(3.7	)
U.S.		12,517		11,414		9.7			9.7		-
International		12,229		12,012		1.8			8.3		(6.5	)
Worldwide		24,746		23,426		5.6			9.0		(3.4	)
U.S.		12,517		11,339		10.4			10.4		-
International		11,482		11,630		(1.3	)		5.2		(6.5	)
Worldwide excluding COVID-19 Vaccine (1)	$	23,999		22,969		4.5		%	7.7		(3.2	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales reconciliation schedule

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FIRST QUARTER
						Percent Change
	2023			2022		Total			Operations		Currency
Sales to customers by
geographic area
U.S.	$	12,517		11,414		9.7		%	9.7		-
Europe		6,332		6,024		5.1			10.0		(4.9	)
Western Hemisphere excluding U.S.		1,587		1,482		7.1			14.3		(7.2	)
Asia-Pacific, Africa		4,310		4,506		(4.3	)		4.1		(8.4	)
International		12,229		12,012		1.8			8.3		(6.5	)
Worldwide	$	24,746		23,426		5.6		%	9.0		(3.4	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	FIRST QUARTER
	2023							2022							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	24,746			100.0			$	23,426			100.0			5.6
Cost of products sold		8,395			33.9				7,598			32.4			10.5
Gross Profit		16,351			66.1				15,828			67.6			3.3
Selling, marketing and administrative expenses		6,138			24.8				5,938			25.4			3.4
Research and development expense		3,563			14.4				3,462			14.8			2.9
In-process research and development		49			0.2				610			2.6
Interest (income) expense, net		(20	)		(0.1	)			(12	)		(0.1	)
Other (income) expense, net		7,228			29.2				(102	)		(0.4	)
Restructuring		130			0.6				70			0.3
Earnings/(Loss) before provision for taxes on income		(737	)		(3.0	)			5,862			25.0			(112.6	)
Provision for/(Benefit from) taxes on income		(669	)		(2.7	)			713			3.0			(193.8	)
Net earnings/(Loss)	$	(68	)		(0.3	)		$	5,149			22.0			(101.3	)
Net earnings/(Loss) per share (Basic/Diluted)*	$	(0.03	)					$	1.93						(101.6	)
Average shares outstanding (Basic/Diluted)*		2,605.5							2,666.5
Effective tax rate		90.8		%					12.2		%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	8,468			34.2			$	8,218			35.1			3.0
Net earnings	$	7,068			28.6			$	7,129			30.4			(0.9	)
Net earnings per share (Diluted)	$	2.68						$	2.67						0.4
Average shares outstanding (Diluted)**		2,634.3							2,666.5
Effective tax rate		16.5		%					13.3		%
* Basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive.
** Difference of 28.8 shares due to anti-dilutive impact on net loss position.
(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)	2023			2022
	Net Earnings/(Loss), after tax- as reported	($68	)		$5,149
	Pre-tax Adjustments
	Litigation expense	6,900			-
	Intangible Asset Amortization expense	1,204			1,108
	COVID-19 Vaccine related costs1	444			-
	Consumer Health separation costs	300			102
	Restructuring related2	130			72
	(Gains)/losses on securities	72			411
	Medical Device Regulation3	64			60
	IPR&D	49			610
	Acquisition, integration and divestiture related	42			-
	Other	-			(7	)
	Tax Adjustments
	Tax impact on special item adjustments 4	(2,057	)		(393	)
	Consumer Health separation tax related costs	11			96
	Tax legislation and other tax related	(23	)		(79	)
	Adjusted Net Earnings, after tax	$7,068			$7,129
	Average shares outstanding (Diluted)	2,634.3			2,666.5
	Adjusted net earnings per share (Diluted)	$2.68			$2.67
	Operational adjusted net earnings per share (Diluted)	$2.75

		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 the first quarter of 2023, the company completed a prioritization of its research and development (R&D) investment within the Pharmaceutical segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, HIV and hepatitis. The restructuring expenses of $130 million in the quarter include the termination of partnered and non-partnered program costs and asset impairments.
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 is expected to 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 2023 ACTUAL vs. 2022 ACTUAL
Segments
		Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported		7.4	%		4.2	%		7.3	%		5.6	%
U.S.		11.4	%		5.9	%		16.6	%		9.7	%
International		4.4	%		2.4	%		(0.6	)%		1.8	%
WW Currency		(3.9	)		(3.0	)		(3.7	)		(3.4	)
U.S.		-			-			-			-
International		(6.9	)		(6.2	)		(6.8	)		(6.5	)
WW Operational		11.3	%		7.2	%		11.0	%		9.0	%
U.S.		11.4	%		5.9	%		16.6	%		9.7	%
International		11.3	%		8.6	%		6.2	%		8.3	%
Abiomed								(4.6	)		(1.4	)
U.S.								(8.2	)		(2.3	)
International								(1.6	)		(0.5	)
All Other Acquisitions and Divestitures		0.0			0.0			0.0			0.0
U.S.		0.0			0.0			0.0			0.0
International		0.0			0.2			0.0			0.1
WW Adjusted Operational		11.3	%		7.2	%		6.4	%		7.6	%
U.S.		11.4	%		5.9	%		8.4	%		7.4	%
International		11.3	%		8.8	%		4.6	%		7.9	%
Note: Percentages are based on actual, non-rounded figures and may not sum

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
								% Change
			2023			2022		Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US			$	745		670		11.0	%		11.0	%		-
Intl				897		791		13.5	%		19.8	%		-6.3	%
WW				1,642		1,461		12.4	%		15.8	%		-3.4	%
SKIN HEALTH / BEAUTY
US				617		544		13.4	%		13.4	%		-
Intl				493		468		5.3	%		12.6	%		-7.3	%
WW				1,110		1,012		9.7	%		13.1	%		-3.4	%
ORAL CARE
US				159		143		11.6	%		11.6	%		-
Intl				202		223		-9.6	%		-4.0	%		-5.6	%
WW				361		366		-1.3	%		2.1	%		-3.4	%
BABY CARE
US				96		85		13.0	%		13.0	%		-
Intl				263		270		-2.8	%		4.5	%		-7.3	%
WW				359		355		1.0	%		6.5	%		-5.5	%
WOMEN'S HEALTH
US				3		3		1.8	%		1.8	%		-
Intl				214		224		-4.9	%		4.1	%		-9.0	%
WW				217		228		-4.8	%		4.1	%		-8.9	%
WOUND CARE / OTHER
US				115		112		2.6	%		2.6	%		-
Intl				49		52		-6.0	%		2.3	%		-8.3	%
WW				164		164		-0.1	%		2.5	%		-2.6	%
TOTAL CONSUMER HEALTH
US				1,735		1,557		11.4	%		11.4	%		-
Intl				2,117		2,029		4.4	%		11.3	%		-6.9	%
WW			$	3,852		3,586		7.4	%		11.3	%		-3.9	%
See footnotes at end of schedule

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
								% Change
PHARMACEUTICAL SEGMENT (2,3)			2023			2022		Reported			Operational (1)			Currency
IMMUNOLOGY
US			$	2,448		2,501		-2.1	%		-2.1	%		-
Intl				1,664		1,617		2.9	%		9.7	%		-6.8	%
WW				4,112		4,119		-0.2	%		2.5	%		-2.7	%
REMICADE
US				276		358		-22.8	%		-22.8	%		-
US Exports (4)				41		80		-48.8	%		-48.8	%		-
Intl				170		225		-24.4	%		-20.0	%		-4.4	%
WW				487		663		-26.5	%		-25.0	%		-1.5	%
SIMPONI / SIMPONI ARIA
US				271		287		-5.6	%		-5.6	%		-
Intl				266		283		-6.1	%		1.8	%		-7.9	%
WW				537		571		-5.8	%		-1.9	%		-3.9	%
STELARA
US				1,451		1,379		5.2	%		5.2	%		-
Intl				993		909		9.3	%		16.2	%		-6.9	%
WW				2,444		2,288		6.8	%		9.6	%		-2.8	%
TREMFYA
US				406		391		3.9	%		3.9	%		-
Intl				234		199		17.3	%		24.9	%		-7.6	%
WW				640		590		8.4	%		11.0	%		-2.6	%
OTHER IMMUNOLOGY
US				3		6		-51.2	%		-51.2	%		-
Intl				0		0		-			-			-
WW				3		6		-51.3	%		-51.3	%		0.0	%
INFECTIOUS DISEASES
US				392		461		-14.9	%		-14.9	%		-
Intl				1,193		836		42.8	%		49.2	%		-6.4	%
WW				1,586		1,297		22.3	%		26.4	%		-4.1	%
COVID-19 VACCINE
US				0		75		*			*			-
Intl				747		382		95.6	%		*			-8.9	%
WW				747		457		63.4	%		70.8	%		-7.4	%
EDURANT / rilpivirine
US				9		9		-1.4	%		-1.4	%		-
Intl				271		239		13.4	%		18.7	%		-5.3	%
WW				280		248		12.8	%		18.0	%		-5.2	%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US				378		369		2.5	%		2.5	%		-
Intl				99		132		-25.2	%		-21.2	%		-4.0	%
WW				477		501		-4.8	%		-3.7	%		-1.1	%
OTHER INFECTIOUS DISEASES
US				5		8		-33.1	%		-33.1	%		-
Intl				77		83		-7.6	%		-5.6	%		-2.0	%
WW				82		91		-9.8	%		-8.0	%		-1.8	%

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
							% Change
			2023		2022		Reported			Operational (1)			Currency
NEUROSCIENCE
US			978		843		16.0	%		16.0	%		-
Intl			826		898		-8.1	%		-3.1	%		-5.0	%
WW			1,804		1,741		3.6	%		6.1	%		-2.5	%
CONCERTA / Methylphenidate
US			70		35		*			*			-
Intl			136		122		11.4	%		20.2	%		-8.8	%
WW			206		157		31.4	%		38.2	%		-6.8	%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US			713		661		7.9	%		7.9	%		-
Intl			331		387		-14.6	%		-8.9	%		-5.7	%
WW			1,044		1,048		-0.4	%		1.7	%		-2.1	%
SPRAVATO
US			111		61		82.4	%		82.4	%		-
Intl			20		9		*			*			*
WW			131		70		86.9	%		88.0	%		-1.1	%
OTHER NEUROSCIENCE
US			84		86		-3.5	%		-3.5	%		-
Intl			339		380		-10.7	%		-7.6	%		-3.1	%
WW			423		467		-9.4	%		-6.9	%		-2.5	%
ONCOLOGY
US			1,889		1,582		19.4	%		19.4	%		-
Intl			2,223		2,369		-6.1	%		-0.1	%		-6.0	%
WW			4,112		3,950		4.1	%		7.7	%		-3.6	%
CARVYKTI
US			70		-		*			*			-
Intl			2		-		*			*			-
WW			72		-		*			*			-
DARZALEX
US			1,191		953		25.0	%		25.0	%		-
Intl			1,072		903		18.8	%		26.4	%		-7.6	%
WW			2,264		1,856		22.0	%		25.7	%		-3.7	%
ERLEADA
US			249		206		21.2	%		21.2	%		-
Intl			293		194		50.9	%		60.7	%		-9.8	%
WW			542		400		35.6	%		40.3	%		-4.7	%
IMBRUVICA
US			270		370		-27.1	%		-27.1	%		-
Intl			557		668		-16.6	%		-11.7	%		-4.9	%
WW			827		1,038		-20.3	%		-17.2	%		-3.1	%
ZYTIGA / abiraterone acetate
US			16		19		-14.0	%		-14.0	%		-
Intl			229		520		-56.0	%		-52.2	%		-3.8	%
WW			245		539		-54.5	%		-50.9	%		-3.6	%
OTHER ONCOLOGY
US			92		34		*			*			-
Intl			70		84		-17.2	%		-12.1	%		-5.1	%
WW			162		118		37.4	%		41.0	%		-3.6	%

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
								% Change
			2023			2022		Reported			Operational (1)			Currency
PULMONARY HYPERTENSION
US				600		572		4.9	%		4.9	%		-
Intl				272		279		-2.7	%		5.3	%		-8.0	%
WW				872		852		2.4	%		5.0	%		-2.6	%
OPSUMIT
US				273		273		-0.1	%		-0.1	%		-
Intl				167		170		-1.6	%		6.1	%		-7.7	%
WW				440		443		-0.7	%		2.3	%		-3.0	%
UPTRAVI
US				304		269		13.1	%		13.1	%		-
Intl				58		56		3.3	%		9.4	%		-6.1	%
WW				362		325		11.4	%		12.4	%		-1.0	%
OTHER PULMONARY HYPERTENSION
US				23		30		-22.4	%		-22.4	%		-
Intl				47		53		-12.6	%		-1.8	%		-10.8	%
WW				70		83		-16.1	%		-9.3	%		-6.8	%
CARDIOVASCULAR / METABOLISM / OTHER
US				715		672		6.3	%		6.3	%		-
Intl				212		238		-10.8	%		-6.3	%		-4.5	%
WW				927		910		1.8	%		3.0	%		-1.2	%
XARELTO
US				578		508		13.7	%		13.7	%		-
Intl				-		-		-			-			-
WW				578		508		13.7	%		13.7	%		-
OTHER
US				137		164		-16.7	%		-16.7	%		-
Intl				212		238		-10.8	%		-6.3	%		-4.5	%
WW				349		402		-13.2	%		-10.5	%		-2.7	%
TOTAL PHARMACEUTICAL
US				7,023		6,632		5.9	%		5.9	%		-
Intl				6,390		6,237		2.4	%		8.6	%		-6.2	%
WW			$	13,413		12,869		4.2	%		7.2	%		-3.0	%
See footnotes at end of schedule

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
								% Change
MEDTECH SEGMENT (2,3)			2023			2022		Reported			Operational (1)			Currency
INTERVENTIONAL SOLUTIONS
US			$	863		494		74.5	%		74.5	%		-
Intl				640		597		7.1	%		14.9	%		-7.8	%
WW				1,503		1,092		37.6	%		41.9	%		-4.3	%
ELECTROPHYSIOLOGY
US				571		470		21.4	%		21.4	%		-
Intl				522		532		-1.8	%		6.1	%		-7.9	%
WW				1,092		1,002		9.1	%		13.3	%		-4.2	%
ABIOMED
US				264		-		*			*			-
Intl				60		-		*			*			-
WW				324		-		*			*			-
OTHER INTERVENTIONAL SOLUTIONS
US				28		24		17.4	%		17.4	%		-
Intl				58		65		-11.7	%		-5.0	%		-6.7	%
WW				87		90		-3.9	%		1.1	%		-5.0	%
ORTHOPAEDICS
US				1,363		1,289		5.8	%		5.8	%		-
Intl				881		899		-2.0	%		4.0	%		-6.0	%
WW				2,245		2,188		2.6	%		5.1	%		-2.5	%
HIPS
US				241		225		7.3	%		7.3	%		-
Intl				149		164		-9.0	%		-3.6	%		-5.4	%
WW				390		389		0.4	%		2.7	%		-2.3	%
KNEES
US				226		201		12.4	%		12.4	%		-
Intl				142		138		3.4	%		9.6	%		-6.2	%
WW				368		339		8.7	%		11.3	%		-2.6	%
TRAUMA
US				491		475		3.2	%		3.2	%		-
Intl				267		273		-2.4	%		3.6	%		-6.0	%
WW				757		748		1.2	%		3.4	%		-2.2	%
SPINE, SPORTS & OTHER
US				406		387		4.7	%		4.7	%		-
Intl				323		324		-0.3	%		5.9	%		-6.2	%
WW				729		712		2.4	%		5.2	%		-2.8	%

			REPORTED SALES vs. PRIOR PERIOD ($MM)
		FIRST QUARTER
								% Change
			2023			2022		Reported			Operational (1)			Currency
SURGERY
US				975		921		5.9	%		5.9	%		-
Intl				1,459		1,513		-3.6	%		3.1	%		-6.7	%
WW				2,434		2,434		0.0	%		4.1	%		-4.1	%
ADVANCED
US				444		417		6.5	%		6.5	%		-
Intl				673		729		-7.6	%		-1.1	%		-6.5	%
WW				1,118		1,146		-2.5	%		1.6	%		-4.1	%
GENERAL
US				531		504		5.4	%		5.4	%		-
Intl				785		784		0.2	%		7.0	%		-6.8	%
WW				1,316		1,288		2.2	%		6.4	%		-4.2	%
VISION
US				558		521		7.1	%		7.1	%		-
Intl				743		736		0.8	%		8.0	%		-7.2	%
WW				1,300		1,257		3.4	%		7.6	%		-4.2	%
CONTACT LENSES / OTHER
US				444		400		11.1	%		11.1	%		-
Intl				509		511		-0.3	%		7.9	%		-8.2	%
WW				953		910		4.7	%		9.3	%		-4.6	%
SURGICAL
US				114		121		-6.0	%		-6.0	%		-
Intl				233		226		3.3	%		8.0	%		-4.7	%
WW				347		347		0.1	%		3.1	%		-3.0	%
TOTAL MEDTECH
US				3,759		3,225		16.6	%		16.6	%		-
Intl				3,722		3,746		-0.6	%		6.2	%		-6.8	%
WW			$	7,481		6,971		7.3	%		11.0	%		-3.7	%

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) Certain prior year amounts have been reclassified to conform to current year product disclosures; refer to supplemental sales schedules
(4) Reported as U.S. sales

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
				FIRST QUARTER
									Percent Change
				2023			2022		Total			Operations		Currency
	Pharmaceutical
	U.S.			$	7,023		6,632		5.9		%	5.9		-
	International				6,390		6,237		2.4			8.6		(6.2	)
	Worldwide				13,413		12,869		4.2			7.2		(3.0	)
	COVID-19 Vaccine
	U.S.				0		75		*			*		-
	International				747		382		95.6			*		(8.9	)
	Worldwide				747		457		63.4			70.8		(7.4	)
	Pharmaceutical excluding COVID-19 Vaccine
	U.S.				7,023		6,557		7.1			7.1		-
	International				5,643		5,855		(3.6	)		2.4		(6.0	)
	Worldwide				12,666		12,412		2.0			4.9		(2.9	)
	Worldwide
	U.S.				12,517		11,414		9.7			9.7		-
	International				12,229		12,012		1.8			8.3		(6.5	)
	Worldwide				24,746		23,426		5.6			9.0		(3.4	)
	COVID-19 Vaccine
	U.S.				0		75		*			*		-
	International				747		382		95.6			*		(8.9	)
	Worldwide				747		457		63.4			70.8		(7.4	)
	Worldwide
	U.S.				12,517		11,339		10.4			10.4		-
	International				11,482		11,630		(1.3	)		5.2		(6.5	)
	Worldwide excluding COVID-19 Vaccine			$	23,999		22,969		4.5		%	7.7		(3.2	)
	Note: Columns and rows within tables may not add due to rounding
	* Percentage greater than 100% or not meaningful

Supplemental Sales Information
(Dollars in Millions)
Certain prior year amounts have been reclassified to
conform to current year product disclosures
		2021				2022										2022
			Full Year				Q1		Q2		Q3		Q4				Full Year
	PHARMACEUTICAL SEGMENT (1)
	NEUROSCIENCE
	SPRAVATO
	US		198				61		74		88		105				328
	INTL		26				9		11		12		14				46
	WW		224				70		85		100		119				374
	OTHER NEUROSCIENCE (2)
	US		427				86		93		106		91				376
	INTL		1,647				380		341		286		351				1,358
	WW		2,074				467		433		393		442				1,734
	ONCOLOGY
	CARVYKTI
	US		-				-		24		55		54				133
	INTL		-				-		-		-		-				-
	WW		-				-		24		55		54				133
	OTHER ONCOLOGY
	US		110				34		33		37		52				156
	INTL		458				84		72		64		63				283
	WW		568				118		106		100		114				438
	CARDIOVASCULAR / METABOLISM / OTHER
	OTHER (3)
	US		754				164		148		147		110				569
	INTL		927				238		215		198		194				845
	WW		1,682				402		363		345		304				1,414
	MEDTECH SEGMENT (1)
	INTERVENTIONAL SOLUTIONS
	ELECTROPHYSIOLOGY
	US		1,730				470		499		520		547				2,036
	INTL		1,893				532		469		453		447				1,901
	WW		3,623				1,002		968		973		994				3,937
	ABIOMED (4)
	US		-				-		-		-		31				31
	INTL		-				-		-		-		-				-
	WW		-				-		-		-		31				31
	OTHER INTERVENTIONAL SOLUTIONS
	US		106				24		26		27		25				102
	INTL		242				65		56		60		48				230
	WW		348				90		81		87		73				332
	Note: Columns and rows within tables may not add due to rounding
	(1) Unaudited
	(2) Other Neuroscience is inclusive of RISPERDAL CONSTA, which was previously disclosed separately
	(3) Other is inclusive of INVOKANA, which was previously disclosed separately
	(4) Acquired on December 22, 2022

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q1 YTD - Income Before Tax by Segment
Dollars in Millions
																			Consumer Health Separation Costs
			Consumer Health				Pharmaceutical				MedTech				Unallocated								Worldwide Total
			2023		2022		2023		2022		2023		2022		2023		2022		2023		2022		2023		2022
Reported Income Before Tax by Segment		$	776		686		4,444		3,924		1,445		1,477		(7,102)		(123)		(300)		(102)		(737)		5,862
% to Sales			20.1%		19.1%		33.1%		30.5%		19.3%		21.2%		-28.7%		-0.5%		-1.2%		-0.4%		-3.0%		25.0%
Intangible asset amortization expense			82		94		739		760		383		254				-				-		1,204		1,108
In-process research and development					-				610		49		-				-				-		49		610
Litigation related															6,900		-				-		6,900		-
COVID-19 Vaccine related costs			-		-		444		-		-		-		-		-		-		-		444		-
Loss/(gain) on securities					-		38		394		34		17				-				-		72		411
Restructuring related					14		130		(14)				72				-				-		130		72
Acquisition, integration and divestiture related					-				-		42		-				-				-		42		-
Medical Device Regulation					-				-		64		60				-				-		64		60
Consumer Health separation costs					-				-				-				-		300		102		300		102
Other					-				-				-				(7)				-		-		(7)
Adjusted Income Before Tax by Segment		$	858		794		5,795		5,674		2,017		1,880		(202)		(130)		-		-		8,468		8,218
% to Sales			22.3%		22.1%		43.2%		44.1%		27.0%		27.0%		-0.8%		-0.6%		0.0%		0.0%		34.2%		35.1%

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
	First Quarter April 2, 2023 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			First Quarter April 2, 2023 Non-GAAP
Cost of products sold	$	8,395			(1,200	)								-									(23	)		(206	)		(12	)											6,954
Selling, marketing and admin expenses		6,138																					(7	)					(38	)											6,093
Research and development expense		3,563															(16	)					(34	)		(16	)		(2	)											3,495
Other (Income) / Expense		7,228			(4	)		(6,900	)					-			(26	)		(72	)					(222	)		(285	)								-			(281	)
In-process research and development		49									(49	)																													-
Interest (Income) / Expense		(20	)																										37												17
Restructuring		130												(130	)																										-
Provision for/(Benefit from) taxes on income		(669	)		194			1,622			11			32			5			16			12			105			60			(11	)		23			-			1,400
Net Earnings/(Loss)		(68	)		1,010			5,278			38			98			37			56			52			339			240			11			(23	)		-			7,068
	First Quarter April 3, 2022 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			First Quarter April 3, 2022 Non-GAAP
Cost of products sold	$	7,598			(1,108	)								(16	)								(22	)																	6,452
Selling, marketing and admin expenses		5,938																					(6	)																	5,932
Research and development expense		3,462																					(32	)																	3,430
Other (Income) / Expense		(102	)		-			-						14			-			(411	)					-			(102	)								7			(594	)
In-process research and development		610									(610	)																													-
Restructuring		70												(70	)																										-
Provision for taxes on income		713			168			(53	)		138			12			-			96			11			-			23			(96	)		79			(2	)		1,089
Net Earnings		5,149			940			53			472			60			-			315			49			-			79			96			(79	)		(5	)		7,129

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005360/en/

Press:

Tesia Williams

media-relations@its.jnj.com

Investor:

Jessica Moore

investor-relations@its.jnj.com

Source: Johnson & Johnson

FAQ

What were Johnson & Johnson's Q1 2023 sales figures?

In Q1 2023, Johnson & Johnson reported sales of $24.7 billion, a 5.6% increase compared to Q1 2022.

How much did Johnson & Johnson's adjusted EPS change in Q1 2023?

Johnson & Johnson's adjusted EPS increased by 0.4% to $2.68 in Q1 2023.

What is the guidance for Johnson & Johnson's full-year 2023 performance?

Johnson & Johnson has increased its full-year guidance for adjusted operational sales and EPS.

Which segment performed the best for Johnson & Johnson in Q1 2023?

The Consumer Health segment showed the highest growth at 11.3% in Q1 2023.

What factors contributed to the decline in Johnson & Johnson's net earnings?

Johnson & Johnson's net earnings declined significantly due to a ($68) million loss influenced by a one-time charge.