Johnson & Johnson Reports 2020 Fourth-Quarter And Full Year Results

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) reported its 2020 financial results, showing a 0.6% increase in annual sales to $82.58 billion. The fourth-quarter sales rose by 8.3% to $22.48 billion. However, net earnings fell 56.7% YoY to $1.74 billion, with EPS declining to $0.65. The pharmaceutical sector saw an 8.0% increase in operational sales, while the medical devices segment faced an 11.6% decline due to COVID-19. The company remains optimistic about its ongoing COVID-19 vaccine efforts and potential future innovations.

Positive

• Fourth-quarter sales increased by 8.3% to $22.48 billion.
• Successful operational sales growth in the pharmaceutical sector by 8.0%.

Negative

• Net earnings decreased by 56.7% year-over-year.
• Medical devices segment sales declined by 11.6% due to the COVID-19 pandemic impact.

NEW BRUNSWICK, N.J., Jan. 26, 2021 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2020. "Our notable full year performance reflects the continued confidence from patients, physicians, customers and consumers in our life-enhancing products and medicines, particularly throughout the COVID-19 pandemic," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm incredibly proud of our Johnson & Johnson teams around the world for going above and beyond to meet stakeholder needs. These efforts, and our commitment to families around the world as the largest broad-based healthcare company, enabled us to lead in the fight against COVID-19. We continue to progress our COVID-19 vaccine candidate and look forward to sharing details from our Phase 3 study soon. Johnson & Johnson was built for times like these, and I am extremely confident in our ability to deliver lasting value and continued innovation in 2021 and for years to come."

OVERALL FINANCIAL RESULTS:

	FOURTH QUARTER				TWELVE MONTHS
($ in Millions, except EPS)	2020	2019	%  Change		2020	2019	%  Change
Reported Sales	$ 22,475	$ 20,747	8.3%		$ 82,584	$ 82,059	0.6%
Net Earnings	1,738	4,010	(56.7)%		14,714	15,119	(2.7)%
EPS (diluted)	$      0.65	$      1.50	(56.7)%		$      5.51	$      5.63	(2.1)%
Non-GAAP*	FOURTH QUARTER				TWELVE MONTHS
($ in Millions, except EPS)	2020	2019	%  Change		2020	2019	%  Change
Operational Sales1,2	N/A	N/A	7.1%		N/A	N/A	1.2%
Adjusted Operational Sales1,3	N/A	N/A	7.3%		N/A	N/A	1.5%
Adjusted Net Earnings1,4	4,965	5,027	(1.2)%		21,433	23,310	(8.1)%
Adjusted EPS (diluted)1,4	$      1.86	$      1.88	(1.1)%		$      8.03	$      8.68	(7.5)%

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

REGIONAL SALES RESULTS: 

	FOURTH QUARTER		%  Change
($ in Millions) 1	20202	20192	Reported2	Operational1,2	Currency2	Adjusted Operational1,3
U.S.	$ 11,809	$ 10,774	9.6%	9.6%	-	9.6
International	10,666	9,973	7.0%	4.3%	2.7	4.8
Worldwide	$ 22,475	$ 20,747	8.3%	7.1%	1.2	7.3
	TWELVE MONTHS		%  Change
($ in Millions) 1	20202	20192	Reported2	Operational1,2	Currency2	Adjusted Operational1,3
U.S.	$ 43,133	$ 42,097	2.5%	2.5	-	2.8
International	39,451	39,962	(1.3)%	(0.2)	(1.1)	0.2
Worldwide	$ 82,584	$ 82,059	0.6%	1.2	(0.6)	1.5

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:

	FOURTH QUARTER		%  Change
($ in Millions) 1	20201	20191	Reported2	Operational1,2	Currency1	Adjusted Operational1,3
Consumer Health	$       3,618	$       3,567	1.4%	2.0	(0.6)	2.1
Pharmaceutical	12,268	10,548	16.3%	14.6	1.7	14.6
Medical Devices	6,589	6,632	(0.7)%	(2.2)	1.5	(1.5)
Worldwide	$     22,475	$     20,747	8.3%	7.1	1.2	7.3
	TWELVE MONTHS		%  Change
($ in Millions) 1	20201	20191	Reported2	Operational1,2	Currency1	Adjusted Operational1,3
Consumer Health	$     14,053	$     13,898	1.1%	3.0	(1.9)	3.1
Pharmaceutical	45,572	42,198	8.0%	8.2	(0.2)	8.4
Medical Devices	22,959	25,963	(11.6)%	(11.4)	(0.2)	(10.5)
Worldwide	$     82,584	$     82,059	0.6%	1.2	(0.6)	1.5

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

FULL-YEAR 2020 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.1%* driven by U.S. growth in over-the-counter products including TYLENOL analgesics, PEPCID and ZYRTEC; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products and wound care products.  Growth was negatively impacted by COVID-19 primarily in skin health/beauty and international baby care partially offset by increased COVID-19 demand in oral care products.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 8.4%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis,   INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, U.S. ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer, and international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma. 

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 10.5%*. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products. Results reflect market recovery in the second half of 2020. 

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 available online in the Investors section of the company's website at news releases.

Regulatory Approvals	VELYS Robotic-Assisted Solution- Receives 510(k) FDA Clearance Designed for Use with the ATTUNE Total Knee System ¹	(press release)
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)- Becomes the First FDA-Approved Treatment for Patients with Newly Diagnosed Light Chain (AL) Amyloidosis ¹	(press release)
	CABENUVA (rilpivirine/cabotegravir)- U.S. FDA Approval and European Commission Authorization of the first complete long acting injectable HIV treatment ¹	(press release) (press release)
	TREMFYA (guselkumab)- European Commission Approves First-in-Class treatment for Active Psoriatic Arthritis (PsA)	(press release)
Regulatory Submissions	Amivantamab- Submission of U.S. FDA and European Marketing Authorization Application for Treatment of Patients with Metastatic Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations	(press release) (press release)
	BCMA CAR-T Therapy (ciltacabtagene autoleucel)- Rolling Submission of a Biologics License Application to U.S. FDA for the Treatment of Relapsed and/or Refractory Multiple Myeloma	(press release)
	DARZALEX (daratumumab and hyaluronidase-fihj)- Janssen Submits Applications in U.S. and EU Seeking Approval of DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)/DARZALEX (daratumumab) Subcutaneous (SC) Formulation in Combination With Pomalidomide and Dexamethasone for Patients With Relapsed or Refractory Multiple Myeloma	(press release)
	Paliperidone Palmitate 6-Month- Submission of Supplemental New Drug Application to U.S. FDA and European Marketing Authorization for Treatment of Schizophrenia in Adults	(press release) (press release)
	XARELTO (rivaroxaban)- Submission of Application to U.S. FDA for New Indication to Expand Use in Patients with Peripheral Artery Disease	(press release)
Other	Janssen Receives Positive CHMP Opinion for SPRAVATO (esketamine Nasal Spray) for the Rapid Reduction of Depressive Symptoms in a Psychiatric Emergency for Patients with Major Depressive Disorder	(press release)
	Janssen Acquires Rights to Novel Gene Therapy, Pioneering Treatment Solutions for Late-Stage Age-Related Macular Degeneration	(press release)
	Johnson & Johnson Initiates Second Global Phase 3 Clinical Trial of its Janssen COVID-19 Vaccine Candidate	(press release)

1 Subsequent to the quarter

FULL-YEAR 2021 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.

	January 2021
($ in Billions, except EPS)
Adjusted Operational Sales1,2 Change vs. Prior Year	8.0% - 9.5%
Operational Sales2 Change vs. Prior Year	$88.8B - $90.0B 7.5% – 9.0%
Estimated Reported Sales3 Change vs. Prior Year	$90.5B - $91.7B 9.5% – 11.0%
Adjusted Operational EPS (Diluted)2,4 Change vs. Prior Year	$9.25 - $9.45 15.2% - 17.7%
Adjusted EPS (Diluted)3,4 Change vs. Prior Year	$9.40 - $9.60 17.1% - 19.6%

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 2021 = $1.21 (Illustrative purposes only)

4  Non-GAAP financial measure; excludes intangible amortization expense and special items

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 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care 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. 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: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans, as a result of the COVID-19 pandemic, 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; 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. 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 29, 2019, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the Company's most recently filed Quarterly Report on Form 10-Q and the Company's subsequent 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)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2020		2019		Total		Operations		Currency		2020		2019		Total		Operations		Currency
Sales to customers by
geographic area
U.S.	$ 11,809		10,774		9.6	%	9.6		-		$ 43,133		42,097		2.5	%	2.5		-
Europe	5,271		4,663		13.0		7.7		5.3		18,980		18,466		2.8		2.0		0.8
Western Hemisphere excluding U.S.	1,404		1,495		(6.1)		2.9		(9.0)		5,335		5,941		(10.2)		0.4		(10.6)
Asia-Pacific, Africa	3,991		3,815		4.6		0.7		3.9		15,136		15,555		(2.7)		(3.1)		0.4
International	10,666		9,973		7.0		4.3		2.7		39,451		39,962		(1.3)		(0.2)		(1.1)
Worldwide	$ 22,475		20,747		8.3	%	7.1		1.2		$ 82,584		82,059		0.6	%	1.2		(0.6)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

 

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2020		2019		Total		Operations		Currency		2020		2019		Total		Operations		Currency
Sales to customers by
segment of business
Consumer Health
U.S.	$   1,509		1,470		2.7	%	2.7		-		$   6,362		5,839		9.0	%	9.0		-
International	2,109		2,097		0.5		1.5		(1.0)		7,691		8,059		(4.6)		(1.3)		(3.3)
	3,618		3,567		1.4		2.0		(0.6)		14,053		13,898		1.1		3.0		(1.9)
Pharmaceutical
U.S.	7,116		6,169		15.3		15.3		-		25,735		23,874		7.8		7.8		-
International	5,152		4,379		17.7		13.5		4.2		19,837		18,324		8.3		8.8		(0.5)
	12,268		10,548		16.3		14.6		1.7		45,572		42,198		8.0		8.2		(0.2)
Medical Devices
U.S.	3,184		3,135		1.5		1.5		-		11,036		12,384		(10.9)		(10.9)		-
International	3,405		3,497		(2.6)		(5.5)		2.9		11,923		13,579		(12.2)		(11.8)		(0.4)
	6,589		6,632		(0.7)		(2.2)		1.5		22,959		25,963		(11.6)		(11.4)		(0.2)
U.S.	11,809		10,774		9.6		9.6		-		43,133		42,097		2.5		2.5		-
International	10,666		9,973		7.0		4.3		2.7		39,451		39,962		(1.3)		(0.2)		(1.1)
Worldwide	$ 22,475		20,747		8.3	%	7.1		1.2		$ 82,584		82,059		0.6	%	1.2		(0.6)
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)	FOURTH QUARTER
	2020				2019				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$ 22,475		100.0		$ 20,747		100.0		8.3
Cost of products sold	7,814		34.8		7,134		34.4		9.5
Gross Profit	14,661		65.2		13,613		65.6		7.7
Selling, marketing and administrative expenses	6,457		28.7		6,039		29.1		6.9
Research and development expense	4,032		17.9		3,232		15.6		24.8
In-process research and development	37		0.2		-		-
Interest (income) expense, net	74		0.3		4		0.0
Other (income) expense, net	2,354		10.5		16		0.1
Restructuring	60		0.3		104		0.5
Earnings before provision for taxes on income	1,647		7.3		4,218		20.3		(61.0)
Provision for/(Benefit from) taxes on income	(91)		(0.4)		208		1.0		(143.8)
Net earnings	$   1,738		7.7		$   4,010		19.3		(56.7)
Net earnings per share (Diluted)	$     0.65				$     1.50				(56.7)
Average shares outstanding (Diluted)	2,669.2				2,669.1
Effective tax rate	(5.5)	%			4.9	%
Adjusted earnings before provision for taxes and net earnings(1)
Earnings before provision for taxes on income	$   5,601		24.9		$   5,628		27.1		(0.5)
Net earnings	$   4,965		22.1		$   5,027		24.2		(1.2)
Net earnings per share (Diluted)	$     1.86				$     1.88				(1.1)
Effective tax rate	11.4	%			10.7	%
(1)See Reconciliation of Non-GAAP Financial Measures.

 

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	TWELVE MONTHS
	2020				2019				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$ 82,584		100.0		$ 82,059		100.0		0.6
Cost of products sold	28,427		34.4		27,556		33.6		3.2
Gross Profit	54,157		65.6		54,503		66.4		(0.6)
Selling, marketing and administrative expenses	22,084		26.8		22,178		27.0		(0.4)
Research and development expense	12,159		14.7		11,355		13.8		7.1
In-process research and development	181		0.2		890		1.1
Interest (income) expense, net	90		0.1		(39)		0.0
Other (income) expense, net	2,899		3.5		2,525		3.1
Restructuring	247		0.3		266		0.3
Earnings before provision for taxes on income	16,497		20.0		17,328		21.1		(4.8)
Provision for taxes on income	1,783		2.2		2,209		2.7		(19.3)
Net earnings	$ 14,714		17.8		$ 15,119		18.4		(2.7)
Net earnings per share (Diluted)	$     5.51				$     5.63				(2.1)
Average shares outstanding (Diluted)	2,670.7				2,684.3
Effective tax rate	10.8	%			12.7	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$ 25,428		30.8		$ 28,225		34.4		(9.9)
Net earnings	$ 21,433		26.0		$ 23,310		28.4		(8.1)
Net earnings per share (Diluted)	$     8.03				$     8.68				(7.5)
Effective tax rate	15.7	%			17.4	%
(1)See Reconciliation of Non-GAAP Financial Measures.

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
	Fourth Quarter				Twelve Months Ended
(Dollars in Millions Except Per Share Data)	2020		2019		2020		2019
Net Earnings, after tax- as reported	$1,738		$4,010		$14,714		$15,119
Pre-tax Adjustments
Intangible Asset Amortization expense	1,234		1,142		4,660		4,528
Litigation expense, net	2,902		264		5,112		5,096
IPR&D	37		-		181		890
Restructuring related	85		251		448		611
Acquisition and Integration related ¹	14		90		(1,073)		319
Unrealized (gains)/losses on securities	(373)		(350)		(547)		(567)
Medical Device Regulation 2	55		-		144		-
Other	-		13		6		20
Tax Adjustments
Tax impact on special item adjustments 3	(606)		(123)		(1,608)		(1,977)
Tax legislation and other tax related	(121)		(270)		(604)		(729)
Adjusted Net Earnings, after tax	$4,965		$5,027		$21,433		$23,310
Average shares outstanding (Diluted)	2,669.2		2,669.1		2,670.7		2,684.3
Adjusted net earnings per share (Diluted)	$1.86		$1.88		$8.03		$8.68
Operational adjusted net earnings per share (Diluted)	$1.82				$8.00

	Notes:
1	Acquisition and integration related costs for 2020 primarily includes a Contingent Consideration reversal of $1,148M related to the timing of certain developmental milestones associated with the Auris Health acquisition.
2	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 are 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 Medical Devices operating segments' measures of profit and loss used for making operating decisions and assessing performance.
3	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.
	Prior year amounts have been reclassified to conform to current year disclosure

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
FOURTH QUARTER 2020 ACTUAL vs. 2019 ACTUAL
Segments
		Consumer Health		Pharmaceutical		Medical Devices		Total
WW As Reported		1.4%		16.3%		(0.7)%		8.3%
U.S.		2.7%		15.3%		1.5%		9.6%
International		0.5%		17.7%		(2.6)%		7.0%
WW Currency		(0.6)		1.7		1.5		1.2
U.S.		-		-		-		-
International		(1.0)		4.2		2.9		2.7
WW Operational		2.0%		14.6%		(2.2)%		7.1%
U.S.		2.7%		15.3%		1.5%		9.6%
International		1.5%		13.5%		(5.5)%		4.3%
General Surgery
Advanced Sterilization Products						0.6		0.2
U.S.						0.0		0.0
International						1.0		0.4
All Other Acquisitions and Divestitures		0.1		0.0		0.1		0.1
U.S.		0.1		(0.1)		0.2		0.0
International		0.1		0.2		0.0		0.1
WW Adjusted Operational		2.1%		14.6%		(1.5)%		7.3%
U.S.		2.8%		15.2%		1.7%		9.6%
International		1.6%		13.7%		(4.4)%		4.8%
Note:Percentages are based on actual, non-rounded figures and may not sum

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
TWELVE MONTHS 2020 ACTUAL vs. 2019 ACTUAL
Segments
		Consumer Health		Pharmaceutical		Medical Devices		Total
WW As Reported		1.1%		8.0%		(11.6)%		0.6%
U.S.		9.0%		7.8%		(10.9)%		2.5%
International		(4.6)%		8.3%		(12.2)%		(1.3)%
WW Currency		(1.9)		(0.2)		(0.2)		(0.6)
U.S.		-		-		-		-
International		(3.3)		(0.5)		(0.4)		(1.1)
WW Operational		3.0%		8.2%		(11.4)%		1.2%
U.S.		9.0%		7.8%		(10.9)%		2.5%
International		(1.3)%		8.8%		(11.8)%		(0.2)%
Skin Health / Beauty
Dr. Ci Labo - Japan		(0.1)						0.0
U.S.		0.0						0.0
International		(0.2)						0.0
General Surgery
Advanced Sterilization Products						0.8		0.3
U.S.						0.6		0.2
International						1.0		0.4
Baby Care
Baby Center		0.2						0.0
U.S.		0.5						0.1
International		0.0						0.0
All Other Acquisitions and Divestitures		0.0		0.2		0.0		0.1
U.S.		0.0		0.0		0.0		0.0
International		(0.1)		0.3		0.0		0.1
WW Adjusted Operational		3.1%		8.4%		(10.5)%		1.5%
U.S.		9.5%		7.8%		(10.2)%		2.8%
International		(1.5)%		9.1%		(10.9)%		0.2%
Note: Percentages are based on actual, non-rounded figures and may not sum

 

	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change										% Change
		2020		2019	Reported	Operational (1)	Currency					2020		2019	Reported	Operational (1)	Currency
CONSUMER HEALTH SEGMENT (2,3)
OTC
US		$          543		542	0.1%	0.1%	-					$        2,460		2,010	22.4%	22.4%	-
Intl		642		653	-1.7%	-2.9%	1.2%					2,364		2,434	-2.9%	-1.2%	-1.7%
WW		1,185		1,195	-0.8%	-1.5%	0.7%					4,824		4,444	8.5%	9.4%	-0.9%
SKIN HEALTH / BEAUTY(4)
US		583		582	0.2%	0.2%	-					2,350		2,392	-1.7%	-1.7%	-
Intl		594		568	4.6%	5.0%	-0.4%					2,100		2,201	-4.6%	-2.3%	-2.3%
WW		1,177		1,150	2.4%	2.6%	-0.2%					4,450		4,593	-3.1%	-2.0%	-1.1%
ORAL CARE
US		173		159	8.3%	8.3%	-					683		621	9.9%	9.9%	-
Intl		264		233	13.5%	14.5%	-1.0%					958		906	5.7%	9.6%	-3.9%
WW		437		393	11.4%	12.0%	-0.6%					1,641		1,528	7.4%	9.7%	-2.3%
BABY CARE
US		97		85	14.3%	14.3%	-					376		362	3.7%	3.7%	-
Intl		310		336	-7.8%	-3.6%	-4.2%					1,141		1,313	-13.1%	-7.3%	-5.8%
WW		407		421	-3.4%	0.0%	-3.4%					1,517		1,675	-9.4%	-4.9%	-4.5%
WOMEN'S HEALTH
US		3		3	11.8%	11.8%	-					13		12	8.2%	8.2%	-
Intl		234		250	-6.5%	-3.1%	-3.4%					888		974	-8.8%	-2.9%	-5.9%
WW		237		253	-6.3%	-2.9%	-3.4%					901		986	-8.6%	-2.7%	-5.9%
WOUND CARE / OTHER
US		110		98	11.8%	11.8%	-					480		441	8.9%	8.9%	-
Intl		65		57	12.4%	13.0%	-0.6%					240		230	4.1%	7.3%	-3.2%
WW		175		155	12.0%	12.2%	-0.2%					720		671	7.2%	8.3%	-1.1%
TOTAL CONSUMER HEALTH
US		1,509		1,470	2.7%	2.7%	-					6,362		5,839	9.0%	9.0%	-
Intl		2,109		2,097	0.5%	1.5%	-1.0%					7,691		8,059	-4.6%	-1.3%	-3.3%
WW		$       3,618		3,567	1.4%	2.0%	-0.6%					$      14,053		13,898	1.1%	3.0%	-1.9%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change										% Change
PHARMACEUTICAL SEGMENT (2,5)		2020		2019	Reported	Operational (1)	Currency					2020		2019	Reported	Operational (1)	Currency
IMMUNOLOGY
US		$       2,845		2,517	13.0%	13.0%	-					$      10,175		9,641	5.5%	5.5%	-
Intl		1,261		1,005	25.4%	21.1%	4.3%					4,880		4,309	13.2%	14.0%	-0.8%
WW		4,105		3,522	16.6%	15.3%	1.3%					15,055		13,950	7.9%	8.2%	-0.3%
REMICADE
US		656		755	-13.1%	-13.1%	-					2,508		3,079	-18.5%	-18.5%	-
US Exports (6)		25		68	-62.4%	-62.4%	-					346		294	18.0%	18.0%	-
Intl		220		212	3.3%	2.7%	0.6%					893		1,007	-11.4%	-8.6%	-2.8%
WW		901		1,035	-12.9%	-13.1%	0.2%					3,747		4,380	-14.4%	-13.8%	-0.6%
SIMPONI / SIMPONI ARIA
US		315		302	4.4%	4.4%	-					1,155		1,159	-0.3%	-0.3%	-
Intl		261		213	22.9%	18.8%	4.1%					1,088		1,029	5.8%	7.0%	-1.2%
WW		576		515	12.1%	10.4%	1.7%					2,243		2,188	2.6%	3.1%	-0.5%
STELARA
US		1,572		1,194	31.6%	31.6%	-					5,240		4,346	20.6%	20.6%	-
Intl		672		506	32.7%	27.2%	5.5%					2,467		2,015	22.4%	22.2%	0.2%
WW		2,244		1,700	31.9%	30.3%	1.6%					7,707		6,361	21.1%	21.1%	0.0%
TREMFYA
US		276		199	39.1%	39.1%	-					926		764	21.3%	21.3%	-
Intl		105		71	48.1%	40.0%	8.1%					421		248	69.9%	67.9%	2.0%
WW		382		270	41.5%	39.3%	2.2%					1,347		1,012	33.2%	32.7%	0.5%
OTHER IMMUNOLOGY
US		-		-	-	-	-					-		-	-	-	-
Intl		2		2	-19.7%	-14.5%	-5.2%					11		10	6.4%	12.8%	-6.4%
WW		2		2	-19.7%	-14.5%	-5.2%					11		10	6.4%	12.8%	-6.4%
INFECTIOUS DISEASES
US		470		435	7.9%	7.9%	-					1,735		1,597	8.6%	8.6%	-
Intl		442		430	2.8%	-2.6%	5.4%					1,839		1,815	1.3%	2.2%	-0.9%
WW		912		866	5.4%	2.7%	2.7%					3,574		3,413	4.7%	5.2%	-0.5%
EDURANT / rilpivirine
US		11		14	-17.9%	-17.9%	-					44		50	-11.2%	-11.2%	-
Intl		236		209	13.4%	6.2%	7.2%					920		812	13.3%	11.9%	1.4%
WW		248		222	11.4%	4.7%	6.7%					964		861	11.9%	10.5%	1.4%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		433		390	11.1%	11.1%	-					1,587		1,422	11.6%	11.6%	-
Intl		136		155	-12.4%	-17.1%	4.7%					597		689	-13.4%	-10.7%	-2.7%
WW		569		544	4.4%	3.1%	1.3%					2,184		2,110	3.5%	4.4%	-0.9%
OTHER INFECTIOUS DISEASES
US		25		32	-20.4%	-20.4%	-					104		126	-17.6%	-17.6%	-
Intl		71		67	5.2%	3.3%	1.9%					323		315	2.6%	5.6%	-3.0%
WW		96		99	-3.0%	-4.3%	1.3%					427		441	-3.2%	-1.0%	-2.2%
	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change										% Change
		2020		2019	Reported	Operational (1)	Currency					2020		2019	Reported	Operational (1)	Currency
NEUROSCIENCE
US		806		747	7.9%	7.9%	-					3,091		2,919	5.9%	5.9%	-
Intl		892		819	9.0%	6.2%	2.8%					3,457		3,409	1.4%	2.2%	-0.8%
WW		1,698		1,566	8.5%	7.0%	1.5%					6,548		6,328	3.5%	3.9%	-0.4%
CONCERTA / Methylphenidate
US		33		37	-9.7%	-9.7%	-					183		233	-21.4%	-21.4%	-
Intl		120		115	4.2%	1.4%	2.8%					439		463	-5.1%	-4.5%	-0.6%
WW		153		152	0.9%	-1.2%	2.1%					622		696	-10.6%	-10.2%	-0.4%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		610		564	8.1%	8.1%	-					2,314		2,107	9.8%	9.8%	-
Intl		355		308	15.7%	10.8%	4.9%					1,339		1,224	9.4%	9.1%	0.3%
WW		965		871	10.8%	9.0%	1.8%					3,653		3,330	9.7%	9.6%	0.1%
RISPERDAL CONSTA
US		76		77	-2.5%	-2.5%	-					296		314	-5.9%	-5.9%	-
Intl		92		82	11.0%	7.7%	3.3%					346		374	-7.5%	-6.9%	-0.6%
WW		167		160	4.4%	2.7%	1.7%					642		688	-6.8%	-6.4%	-0.4%
OTHER NEUROSCIENCE
US		88		70	27.4%	27.4%	-					298		266	12.4%	12.4%	-
Intl		326		314	3.7%	3.1%	0.6%					1,334		1,349	-1.1%	0.7%	-1.8%
WW		414		383	8.0%	7.5%	0.5%					1,632		1,614	1.1%	2.6%	-1.5%
ONCOLOGY
US		1,469		1,153	27.4%	27.4%	-					5,092		4,299	18.5%	18.5%	-
Intl		1,965		1,563	25.7%	20.9%	4.8%					7,275		6,393	13.8%	14.0%	-0.2%
WW		3,434		2,716	26.4%	23.7%	2.7%					12,367		10,692	15.7%	15.8%	-0.1%
DARZALEX
US		692		444	55.6%	55.6%	-					2,232		1,567	42.4%	42.4%	-
Intl		561		385	45.4%	41.3%	4.1%					1,958		1,430	36.9%	38.0%	-1.1%
WW		1,253		830	50.9%	49.0%	1.9%					4,190		2,998	39.8%	40.3%	-0.5%
ERLEADA
US		176		103	70.8%	70.8%	-					583		297	96.1%	96.1%	-
Intl		64		13	*	*	*					176		35	*	*	*
WW		241		116	*	*	*					760		332	*	*	*
IMBRUVICA
US		492		392	25.8%	25.8%	-					1,821		1,555	17.1%	17.1%	-
Intl		625		483	29.3%	24.8%	4.5%					2,307		1,856	24.3%	25.1%	-0.8%
WW		1,117		875	27.8%	25.3%	2.5%					4,128		3,411	21.0%	21.5%	-0.5%
VELCADE
US		-		-	-	-	-					-		-	-	-	-
Intl		97		115	-15.2%	-18.5%	3.3%					408		751	-45.7%	-45.8%	0.1%
WW		97		115	-15.2%	-18.5%	3.3%					408		751	-45.7%	-45.8%	0.1%
ZYTIGA / abiraterone acetate
US		89		194	-54.3%	-54.3%	-					373		810	-54.0%	-54.0%	-
Intl		533		483	10.2%	4.3%	5.9%					2,097		1,985	5.6%	4.7%	0.9%
WW		622		677	-8.3%	-12.5%	4.2%					2,470		2,795	-11.6%	-12.3%	0.7%
OTHER ONCOLOGY
US		20		19	2.6%	2.6%	-					83		70	19.2%	19.2%	-
Intl		86		84	1.5%	-2.1%	3.6%					330		336	-1.9%	-1.4%	-0.5%
WW		105		104	1.7%	-1.2%	2.9%					413		407	1.7%	2.2%	-0.5%
PULMONARY HYPERTENSION
US		592		388	52.5%	52.5%	-					2,133		1,684	26.6%	26.6%	-
Intl		273		235	16.8%	12.5%	4.3%					1,015		939	8.2%	8.0%	0.2%
WW		865		623	39.0%	37.4%	1.6%					3,148		2,623	20.0%	20.0%	0.0%
OPSUMIT
US		279		185	52.1%	52.1%	-					1,008		766	31.7%	31.7%	-
Intl		173		143	21.2%	16.9%	4.3%					631		562	12.3%	12.3%	0.0%
WW		452		326	38.6%	36.7%	1.9%					1,639		1,327	23.5%	23.5%	0.0%
UPTRAVI
US		263		178	48.2%	48.2%	-					955		714	33.8%	33.8%	-
Intl		38		30	25.5%	20.1%	5.4%					138		105	30.9%	30.5%	0.4%
WW		301		208	44.9%	44.1%	0.8%					1,093		819	33.5%	33.4%	0.1%
OTHER PULMONARY HYPERTENSION
US		49		26	84.9%	84.9%	-					169		205	-17.6%	-17.6%	-
Intl		63		62	2.4%	-1.2%	3.6%					247		272	-9.2%	-9.4%	0.2%
WW		112		88	26.6%	24.1%	2.5%					416		476	-12.8%	-12.9%	0.1%
CARDIOVASCULAR / METABOLISM / OTHER
US		935		930	0.6%	0.6%	-					3,509		3,734	-6.0%	-6.0%	-
Intl		317		327	-2.6%	-5.4%	2.8%					1,369		1,458	-6.1%	-4.8%	-1.3%
WW		1,253		1,256	-0.2%	-1.0%	0.8%					4,878		5,192	-6.0%	-5.7%	-0.3%
XARELTO
US		629		609	3.1%	3.1%	-					2,345		2,313	1.4%	1.4%	-
Intl		-		-	-	-	-					-		-	-	-	-
WW		629		609	3.1%	3.1%	-					2,345		2,313	1.4%	1.4%	-
INVOKANA / INVOKAMET
US		159		125	27.7%	27.7%	-					564		536	5.2%	5.2%	-
Intl		58		52	11.5%	8.9%	2.6%					231		199	16.3%	17.6%	-1.3%
WW		217		177	22.9%	22.1%	0.8%					795		735	8.2%	8.6%	-0.4%
PROCRIT / EPREX
US		62		118	-46.9%	-46.9%	-					277		505	-45.1%	-45.1%	-
Intl		66		65	2.0%	-1.1%	3.1%					274		285	-3.8%	-3.6%	-0.2%
WW		129		183	-29.5%	-30.6%	1.1%					552		790	-30.2%	-30.1%	-0.1%
OTHER
US		85		78	9.4%	9.4%	-					323		380	-15.1%	-15.1%	-
Intl		194		209	-7.6%	-10.3%	2.7%					864		974	-11.3%	-9.7%	-1.6%
WW		278		286	-3.0%	-5.0%	2.0%					1,186		1,353	-12.4%	-11.2%	-1.2%
TOTAL PHARMACEUTICAL
US		7,116		6,169	15.3%	15.3%	-					25,735		23,874	7.8%	7.8%	-
Intl		5,152		4,379	17.7%	13.5%	4.2%					19,837		18,324	8.3%	8.8%	-0.5%
WW		$     12,268		10,548	16.3%	14.6%	1.7%					$      45,572		42,198	8.0%	8.2%	-0.2%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change										% Change
MEDICAL DEVICES SEGMENT (2,5)		2020		2019	Reported	Operational (1)	Currency					2020		2019	Reported	Operational (1)	Currency
INTERVENTIONAL SOLUTIONS
US		$          433		377	14.8%	14.8%	-					1,452		1,443	0.6%	0.6%	-
Intl		460		398	15.7%	10.8%	4.9%					1,594		1,554	2.6%	2.0%	0.6%
WW		893		774	15.3%	12.8%	2.5%					3,046		2,997	1.6%	1.3%	0.3%
ORTHOPAEDICS
US		1,352		1,369	-1.3%	-1.3%	-					4,779		5,319	-10.2%	-10.2%	-
Intl		839		904	-7.3%	-11.3%	4.0%					2,984		3,520	-15.2%	-15.4%	0.2%
WW		2,191		2,273	-3.7%	-5.3%	1.6%					7,763		8,839	-12.2%	-12.3%	0.1%
HIPS
US		229		230	-0.7%	-0.7%	-					793		863	-8.2%	-8.2%	-
Intl		143		147	-2.2%	-5.8%	3.6%					487		575	-15.3%	-15.1%	-0.2%
WW		372		377	-1.3%	-2.7%	1.4%					1,280		1,438	-11.0%	-11.0%	0.0%
KNEES
US		216		239	-9.5%	-9.5%	-					743		889	-16.4%	-16.4%	-
Intl		129		156	-17.2%	-20.6%	3.4%					427		591	-27.8%	-28.0%	0.2%
WW		345		395	-12.5%	-13.9%	1.4%					1,170		1,480	-21.0%	-21.1%	0.1%
TRAUMA
US		454		413	10.0%	10.0%	-					1,648		1,652	-0.2%	-0.2%	-
Intl		268		273	-2.0%	-6.2%	4.2%					966		1,068	-9.6%	-9.7%	0.1%
WW		722		686	5.2%	3.6%	1.6%					2,614		2,720	-3.9%	-3.9%	0.0%
SPINE, SPORTS & OTHER(7)
US		453		488	-7.1%	-7.1%	-					1,595		1,915	-16.7%	-16.7%	-
Intl		299		329	-9.2%	-13.6%	4.4%					1,104		1,286	-14.1%	-14.6%	0.5%
WW		752		817	-7.9%	-9.7%	1.8%					2,699		3,201	-15.7%	-15.9%	0.2%
SURGERY
US		1,002		961	4.3%	4.3%	-					3,249		3,828	-15.1%	-15.1%	-
Intl		1,427		1,481	-3.7%	-5.9%	2.2%					4,983		5,673	-12.2%	-11.2%	-1.0%
WW		2,429		2,442	-0.5%	-1.9%	1.4%					8,232		9,501	-13.4%	-12.8%	-0.6%
ADVANCED
US		456		428	6.5%	6.5%	-					1,535		1,637	-6.2%	-6.2%	-
Intl		660		647	2.1%	-0.9%	3.0%					2,304		2,458	-6.2%	-5.6%	-0.6%
WW		1,116		1,076	3.8%	2.0%	1.8%					3,839		4,095	-6.2%	-5.8%	-0.4%
GENERAL
US		546		534	2.5%	2.5%	-					1,714		2,192	-21.8%	-21.8%	-
Intl		767		834	-8.1%	-9.8%	1.7%					2,679		3,215	-16.7%	-15.5%	-1.2%
WW		1,312		1,366	-4.0%	-5.0%	1.0%					4,392		5,406	-18.8%	-18.0%	-0.8%
VISION
US		397		428	-7.3%	-7.3%	-					1,557		1,794	-13.2%	-13.2%	-
Intl		679		713	-4.7%	-6.2%	1.5%					2,362		2,830	-16.5%	-16.2%	-0.3%
WW		1,076		1,141	-5.7%	-6.6%	0.9%					3,919		4,624	-15.2%	-15.1%	-0.1%
CONTACT LENSES / OTHER
US		289		311	-7.4%	-7.4%	-					1,213		1,304	-7.0%	-7.0%	-
Intl		507		522	-2.7%	-4.1%	1.4%					1,781		2,088	-14.7%	-14.4%	-0.3%
WW		796		833	-4.4%	-5.3%	0.9%					2,994		3,392	-11.7%	-11.5%	-0.2%
SURGICAL
US		108		117	-7.1%	-7.1%	-					344		490	-29.7%	-29.7%	-
Intl		172		191	-10.3%	-12.0%	1.7%					581		742	-21.7%	-21.5%	-0.2%
WW		280		309	-9.1%	-10.1%	1.0%					925		1,232	-24.9%	-24.7%	-0.2%
TOTAL MEDICAL DEVICES
US		3,184		3,135	1.5%	1.5%	-					11,036		12,384	-10.9%	-10.9%	-
Intl		3,405		3,497	-2.6%	-5.5%	2.9%					11,923		13,579	-12.2%	-11.8%	-0.4%
WW		$       6,589		6,632	-0.7%	-2.2%	1.5%					$      22,959		25,963	-11.6%	-11.4%	-0.2%

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				(6) Reported as U.S. sales
(1) Operational growth excludes the effect of translational currency				(7) Previously referred to as Spine & Other
(2) Unaudited
(3) Previously referred to as Consumer
(4) Previously referred to as Beauty
(5) Certain prior year amounts have been reclassified to conform to current year product disclosures

 

 

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SOURCE Johnson & Johnson

FAQ

What were Johnson & Johnson's fourth-quarter 2020 earnings results?

In the fourth quarter of 2020, Johnson & Johnson reported net earnings of $1.74 billion, a 56.7% decline from the previous year.

How much did Johnson & Johnson's sales grow in 2020?

Johnson & Johnson's total sales for 2020 increased by 0.6% to $82.58 billion.

What impact did COVID-19 have on Johnson & Johnson's medical devices sales?

The medical devices segment experienced an 11.6% decline in sales primarily due to COVID-19-related procedure deferrals.

What was Johnson & Johnson's fourth-quarter EPS for 2020?

Johnson & Johnson reported a diluted EPS of $0.65 in the fourth quarter of 2020.

How did Johnson & Johnson perform in its pharmaceutical segment in 2020?

The pharmaceutical segment achieved an 8.0% increase in operational sales for 2020.