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Johnson & Johnson Reports 2020 Second-Quarter Results:
Jul 16, 2020
- Sales of $18.3 billion reflecting a decline of 10.8%, operational decline of 9.0%* and adjusted operational decline of 8.8%*, primarily driven by the negative impact of the COVID-19 pandemic
 
- EPS of $1.36 decreased 34.6%; adjusted EPS of $1.67 decreased 35.3%*; 2019 included gain from sale of Advanced Sterilization Products (ASP) business
 
- Company increasing Full Year Sales and EPS guidance

NEW BRUNSWICK, N.J., July 16, 2020 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2020. "Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment," said Alex Gorsky, Chairman and Chief Executive Officer. "Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives."  Mr. Gorsky continued, "We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good."

OVERALL FINANCIAL RESULTS:

     

SECOND QUARTER

 

($ in Millions, except EPS)

2020

2019

%  Change

Reported Sales

$       18,336

$       20,562

(10.8)%

Net Earnings

3,626

5,607

(35.3)%

EPS (diluted)

$           1.36

$           2.08

(34.6)%

       

Non-GAAP*

SECOND QUARTER

 

($ in Millions, except EPS)

2020

2019

%  Change

Operational Sales1,2

N/A  

N/A  

(9.0)%

Adjusted Operational Sales1,3

N/A  

N/A  

(8.8)%

Adjusted Net Earnings1,4

4,446

6,950

(36.0)%

Adjusted EPS (diluted)1,4

$           1.67

$           2.58

(35.3)%

 

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: 

     

SECOND QUARTER

%  Change

Adjusted
($ in Millions) 1

Adjusted
20202

Adjusted
20192

Adjusted
Reported2

Adjusted
Operational1,2

Adjusted
Currency2

Adjusted
Operational1,3

U.S.

$         9,539

$       10,403

(8.3)%

(8.3)

-

(8.1)

International

8,797

10,159

(13.4)%

(9.6)

(3.8)

(9.4)

Worldwide

$       18,336

$       20,562

(10.8)%

(9.0)

(1.8)

(8.8)

 

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:

     

SECOND QUARTER

%  Change

Adjusted
($ in Millions) 1

Adjusted
20201

Adjusted
20191

Adjusted
Reported2

Adjusted
Operational1,2

Adjusted
Currency1

Adjusted
Operational1,3

Consumer Health

$         3,296

$         3,544

(7.0)%

(3.6)

(3.4)

(3.4)

Pharmaceutical

10,752

10,529

2.1%

3.9

(1.8)

3.9

Medical Devices

4,288

6,489

(33.9)%

(32.7)

(1.2)

(32.5)

Worldwide

$       18,336

$       20,562

(10.8)%

(9.0)

(1.8)

(8.8)

 

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 COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.4%* as results were negatively impacted by the COVID-19 pandemic most notably reflected in skin health and beauty care products, followed by women's health care products and international baby care products.  Partially offsetting this impact was growth in over-the-counter products including TYLENOL analgesics; digestive health products and ZARBEE'S NATURALS; and LISTERINE mouthwash in oral care products.  Both over-the-counter and oral care products were positively impacted by COVID-19.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* 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, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression. 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, international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices 
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 32.5%* primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, Vision and Interventional Solutions businesses.

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

TREMFYA (guselkumab) – U.S. Food and Drug Administration (FDA)
Approves for Adult Patients with Active Psoriatic Arthritis (PsA)¹

(press release)

ZABDENO (Ad26.ZEBOV) and MVABEA (MVA-BN-Filo) – European
Commission Approves Janssen's Preventive Ebola Vaccine¹

(press release)

DARZALEX (daratumumab) – European Commission (EC) Grants Marketing
Authorisation for Subcutaneous Formulation for all Currently Approved
Intravenous Formulation Indications

(press release)

SIRTURO (bedaquiline) – U.S. FDA Approves New Pediatric Formulation as
Part of Combination Therapy to Treat Children with Pulmonary Multidrug-
Resistant Tuberculosis

(press release)

DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – U.S. FDA
Approves a new Subcutaneous Formulation of Daratumumab for the Treatment
of Patients with Multiple Myeloma

(press release)

IMBRUVICA (ibrutinib) – U.S. FDA Approves IMBRUVICA Plus Rituximab for
Treatment of Patients with Chronic Lymphocytic Leukemia (CLL)

(press release)

Regulatory Submissions

SIMPONI ARIA (golimumab) – Submission to the U.S. Food and Drug
Administration (FDA) for the Treatment of Polyarticular Juvenile Idiopathic
Arthritis and Juvenile Psoriatic Arthritis

(press release) 

Other

STELARA (ustekinumab) Discontinuation of Phase 3 LOTUS Study in Systemic
Lupus Erythematosus

(press release)

Johnson & Johnson Announces Acceleration of its COVID-19 Vaccine
Candidate; Phase 1/2a Clinical Trial to Begin in Second Half of July

(press release)

Biosense Webster Unveils Late-Breaking Results from PRECEPT Study in Patients
with Persistent Atrial Fibrillation

(press release)

1 Subsequent to the quarter

FULL-YEAR 2020 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.

The estimated impact of the COVID-19 pandemic is included in the guidance below.

 

July 2020

April 2020

($ in Billions, except EPS)

Adjusted Operational Sales1,2

Change vs. Prior Year

(0.8%) – 1.0%

(3.0%) - 0.5% 

Operational Sales2

Change vs. Prior Year

$81.0 to $82.5

(1.3%) – 0.5%

$79.2 to $82.2 

(3.5%) - 0.0% 

Estimated Reported Sales3

Change vs. Prior Year

$79.9 to $81.4

(2.6%) – (0.8%)

$77.5 to $80.5 

(5.5%) - (2.0%) 

     

Adjusted Operational EPS (Diluted)2,4

Change vs. Prior Year

$7.85 to $8.05

(9.6%) - (7.3%)

$7.65 to $8.05 

(11.9%) - (7.3%) 

Adjusted EPS (Diluted)3,4

Change vs. Prior Year

$7.75 - $7.95

(10.7%) – (8.4%)

$7.50 to $7.90 

(13.6%) - (9.0%) 

 

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: July 2020 = $1.12 Euro Average Rate: April 2020 = $1.09 (Illustrative purposes only)

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 8:00 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)

SECOND QUARTER

 

SIX MONTHS

         

Percent Change

         

Percent Change

 

2020

 

2019

 

Total

 

Operations

 

Currency

 

2020

 

2019

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$   9,539

 

10,403

 

(8.3)

%

(8.3)

 

-

 

$ 20,238

 

20,532

 

(1.4)

%

(1.4)

 

-

                                       

Europe

4,063

 

4,733

 

(14.2)

 

(11.5)

 

(2.7)

 

8,890

 

9,342

 

(4.8)

 

(2.1)

 

(2.7)

Western Hemisphere excluding U.S.

1,133

 

1,455

 

(22.1)

 

(8.9)

 

(13.2)

 

2,635

 

2,958

 

(10.9)

 

(0.1)

 

(10.8)

Asia-Pacific, Africa

3,601

 

3,971

 

(9.3)

 

(7.7)

 

(1.6)

 

7,264

 

7,751

 

(6.3)

 

(4.9)

 

(1.4)

International

8,797

 

10,159

 

(13.4)

 

(9.6)

 

(3.8)

 

18,789

 

20,051

 

(6.3)

 

(2.9)

 

(3.4)

                                       

Worldwide

$ 18,336

 

20,562

 

(10.8)

%

(9.0)

 

(1.8)

 

$ 39,027

 

40,583

 

(3.8)

%

(2.2)

 

(1.6)

                                       
                                       

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)

SECOND QUARTER

 

SIX 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.

$   1,557

 

1,537

 

1.3

%

1.3

 

-

 

$   3,297

 

2,975

 

10.8

%

10.8

 

-

    International

1,739

 

2,007

 

(13.4)

 

(7.4)

 

(6.0)

 

3,624

 

3,887

 

(6.8)

 

(1.9)

 

(4.9)

 

3,296

 

3,544

 

(7.0)

 

(3.6)

 

(3.4)

 

6,921

 

6,862

 

0.9

 

3.6

 

(2.7)

                                       

Pharmaceutical

                                     

 U.S.

6,120

 

5,783

 

5.8

 

5.8

 

-

 

12,181

 

11,365

 

7.2

 

7.2

 

-

    International

4,632

 

4,746

 

(2.4)

 

1.4

 

(3.8)

 

9,705

 

9,408

 

3.2

 

6.7

 

(3.5)

 

10,752

 

10,529

 

2.1

 

3.9

 

(1.8)

 

21,886

 

20,773

 

5.4

 

7.0

 

(1.6)

                                       

Medical Devices

                                     

 U.S.

1,862

 

3,083

 

(39.6)

 

(39.6)

 

-

 

4,760

 

6,192

 

(23.1)

 

(23.1)

 

-

    International

2,426

 

3,406

 

(28.8)

 

(26.4)

 

(2.4)

 

5,460

 

6,756

 

(19.2)

 

(16.8)

 

(2.4)

 

4,288

 

6,489

 

(33.9)

 

(32.7)

 

(1.2)

 

10,220

 

12,948

 

(21.1)

 

(19.8)

 

(1.3)

                                       

U.S.

9,539

 

10,403

 

(8.3)

 

(8.3)

 

-

 

20,238

 

20,532

 

(1.4)

 

(1.4)

 

-

International

8,797

 

10,159

 

(13.4)

 

(9.6)

 

(3.8)

 

18,789

 

20,051

 

(6.3)

 

(2.9)

 

(3.4)

Worldwide

$ 18,336

 

20,562

 

(10.8)

%

(9.0)

 

(1.8)

 

$ 39,027

 

40,583

 

(3.8)

%

(2.2)

 

(1.6)

                                       

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)

SECOND QUARTER

                   
 

2020

 

2019

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 18,336

 

100.0

 

$ 20,562

 

100.0

 

(10.8)

Cost of products sold

6,579

 

35.9

 

6,940

 

33.8

 

(5.2)

Gross Profit

11,757

 

64.1

 

13,622

 

66.2

 

(13.7)

Selling, marketing and administrative expenses

4,993

 

27.2

 

5,546

 

27.0

 

(10.0)

Research and development expense

2,707

 

14.8

 

2,666

 

13.0

 

1.5

In-process research and development

6

 

0.0

 

-

 

-

   

Interest (income) expense, net

26

 

0.2

 

(5)

 

0.0

   

Other (income) expense, net

24

 

0.1

 

(1,683)

 

(8.2)

   

Restructuring

61

 

0.3

 

57

 

0.2

   

Earnings before provision for taxes on income

3,940

 

21.5

 

7,041

 

34.2

 

(44.0)

Provision for taxes on income

314

 

1.7

 

1,434

 

6.9

 

(78.1)

Net earnings

$   3,626

 

19.8

 

$   5,607

 

27.3

 

(35.3)

                   

Net earnings per share (Diluted)

$     1.36

     

$     2.08

     

(34.6)

                   

Average shares outstanding (Diluted)

2,665.5

     

2,691.7

       
                   

Effective tax rate

8.0

%

   

20.4

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$   5,337

 

29.1

 

$   8,614

 

41.9

 

(38.0)

Net earnings

$   4,446

 

24.2

 

$   6,950

 

33.8

 

(36.0)

Net earnings per share (Diluted)

$     1.67

     

$     2.58

     

(35.3)

Effective tax rate

16.7

%

   

19.3

%

     
                   

(1)See Reconciliation of Non-GAAP Financial Measures.

                 

 

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings 

                 
                   

(Unaudited; in Millions Except Per Share Figures)

SIX MONTHS

                   
 

2020

 

2019

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 39,027

 

100.0

 

$ 40,583

 

100.0

 

(3.8)

Cost of products sold

13,641

 

35.0

 

13,555

 

33.4

 

0.6

Gross Profit

25,386

 

65.0

 

27,028

 

66.6

 

(6.1)

Selling, marketing and administrative expenses

10,196

 

26.1

 

10,765

 

26.5

 

(5.3)

Research and development expense

5,287

 

13.5

 

5,524

 

13.6

 

(4.3)

In-process research and development

6

 

0.0

 

890

 

2.2

   

Interest (income) expense, net

(16)

 

0.0

 

(2)

 

0.0

   

Other (income) expense, net

(655)

 

(1.7)

 

(1,705)

 

(4.2)

   

Restructuring

119

 

0.3

 

93

 

0.3

   

Earnings before provision for taxes on income

10,449

 

26.8

 

11,463

 

28.2

 

(8.8)

Provision for taxes on income

1,027

 

2.7

 

2,107

 

5.1

 

(51.3)

Net earnings

$   9,422

 

24.1

 

$   9,356

 

23.1

 

0.7

                   

Net earnings per share (Diluted)

$     3.53

     

$     3.47

     

1.7

                   

Average shares outstanding (Diluted)

2,671.0

     

2,697.0

       
                   

Effective tax rate

9.8

%

   

18.4

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$ 12,581

 

32.2

 

$ 15,481

 

38.1

 

(18.7)

Net earnings

$ 10,600

 

27.2

 

$ 12,611

 

31.1

 

(15.9)

Net earnings per share (Diluted)

$     3.97

     

$     4.68

     

(15.2)

Effective tax rate

15.7

%

   

18.5

%

     
                   

(1)See Reconciliation of Non-GAAP Financial Measures.

                 

 

 

Johnson & Johnson and Subsidiaries

             

Reconciliation of Non-GAAP Financial Measures 

             
                 
   

Second Quarter

 

Six Months Ended

 

(Dollars in Millions Except Per Share Data)

2020

 

2019

 

2020

 

2019

 

Net Earnings, after tax- as reported

$3,626

 

$5,607

 

$9,422

 

$9,356

                 
 

Pre-tax Adjustments 

             
 

Intangible Asset Amortization expense

1,127

 

1,118

 

2,245

 

2,248

 

Litigation expense, net

613

 

409

 

733

 

832

 

IPR&D

6

 

-

 

6

 

890

 

Restructuring related

115

 

142

 

233

 

232

 

Acquisition and Integration related ¹

29

 

55

 

(933)

 

122

 

Unrealized (gains)/losses on securities 

(533)

 

(148)

 

(206)

 

(306)

 

Medical Device Regulation 2

37

 

-

 

51

 

-

 

Other

3

 

(3)

 

3

 

-

                 
 

Tax Adjustments

             
 

Tax impact on special item adjustments 3

(253)

 

(230)

 

(520)

 

(763)

 

Tax legislation and related impacts 

(324)

 

-

 

(434)

 

-

 

Adjusted Net Earnings, after tax

$4,446

 

$6,950

 

$10,600

 

$12,611

 

Average shares outstanding (Diluted)

2,665.5

 

2,691.7

 

2,671.0

 

2,697.0

 

Adjusted net earnings per share (Diluted)

$1.67

 

$2.58

 

$3.97

 

$4.68

 

Operational adjusted net earnings per share (Diluted)

$1.69

     

$4.01

   
                 
 

Notes:

             

1

Acquisition and integration related costs for the six months of 2020 primarily includes a $983M Contingent
Consideration reversal 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.

 

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Adjusted Operational Sales Growth

 SECOND QUARTER 2020 ACTUAL vs. 2019 ACTUAL 

 

 Segments 

                 
   

Consumer Health

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

                 

 WW As Reported 

 

(7.0)%

 

2.1%

 

(33.9)%

 

(10.8)%

 U.S. 

 

1.3%

 

5.8%

 

(39.6)%

 

(8.3)%

 International 

 

(13.4)%

 

(2.4)%

 

(28.8)%

 

(13.4)%

                 

 WW Currency 

 

(3.4)

 

(1.8)

 

(1.2)

 

(1.8)

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(6.0)

 

(3.8)

 

(2.4)

 

(3.8)

                 

 WW Operational 

 

(3.6)%

 

3.9%

 

(32.7)%

 

(9.0)%

 U.S. 

 

1.3%

 

5.8%

 

(39.6)%

 

(8.3)%

 International 

 

(7.4)%

 

1.4%

 

(26.4)%

 

(9.6)%

                 

General Surgery

               

Advanced Sterilization Products

         

0.1

 

0.1

 U.S. 

         

0.0

 

0.0

 International 

         

0.3

 

0.2

                 

Baby Care

               

Baby Center

 

0.3

         

0.0

 U.S. 

 

0.7

         

0.1

 International 

 

0.0

         

0.0

                 

All Other Acquisitions and Divestitures

 

0.0

 

0.0

 

0.1

 

0.1

 U.S. 

 

0.0

 

0.0

 

0.1

 

0.0

 International 

 

(0.1)

 

0.1

 

0.0

 

0.0

                 

WW Adjusted Operational

 

(3.4)%

 

3.9%

 

(32.5)%

 

(8.8)%

 U.S. 

 

2.0%

 

5.8%

 

(39.5)%

 

(8.1)%

 International 

 

(7.5)%

 

1.5%

 

(26.1)%

 

(9.4)%

                 

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

 SIX MONTHS 2020 ACTUAL vs. 2019 ACTUAL 

 

 Segments 

                 
   

Consumer Health

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

                 

 WW As Reported 

 

0.9%

 

5.4%

 

(21.1)%

 

(3.8)%

 U.S. 

 

10.8%

 

7.2%

 

(23.1)%

 

(1.4)%

 International 

 

(6.8)%

 

3.2%

 

(19.2)%

 

(6.3)%

                 

 WW Currency 

 

(2.7)

 

(1.6)

 

(1.3)

 

(1.6)

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(4.9)

 

(3.5)

 

(2.4)

 

(3.4)

                 

 WW Operational 

 

3.6%

 

7.0%

 

(19.8)%

 

(2.2)%

 U.S. 

 

10.8%

 

7.2%

 

(23.1)%

 

(1.4)%

 International 

 

(1.9)%

 

6.7%

 

(16.8)%

 

(2.9)%

                 

Skin Health / Beauty

               

Dr. Ci Labo - Japan

 

(0.2)

         

0.0

 U.S. 

 

0.0

         

0.0

 International 

 

(0.4)

         

(0.1)

                 

General Surgery

               

Advanced Sterilization Products

         

1.0

 

0.4

 U.S. 

         

1.1

 

0.4

 International 

         

0.9

 

0.4

                 

Baby Care

               

Baby Center

 

0.3

         

0.0

 U.S. 

 

0.7

         

0.1

 International 

 

0.0

         

0.0

                 

All Other Acquisitions and Divestitures

 

(0.1)

 

0.1

 

0.0

 

0.0

 U.S. 

 

0.0

 

0.1

 

0.0

 

0.1

 International 

 

(0.2)

 

0.0

 

0.0

 

0.0

                 

WW Adjusted Operational

 

3.6%

 

7.0%

 

(18.8)%

 

(1.7)%

 U.S. 

 

11.5%

 

7.2%

 

(22.0)%

 

(0.8)%

 International 

 

(2.5)%

 

6.7%

 

(15.9)%

 

(2.6)%

                 

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)

 

SECOND QUARTER

 

SIX MONTHS

     
         

% Change

             

% Change

   

2020

 

2019

Reported

Operational (1)

Currency

       

2020

 

2019

Reported

Operational (1)

Currency

CONSUMER HEALTH SEGMENT (2,3) 

                                 

BABY CARE

                                 

US

 

$                  96

 

99

-3.5%

-3.5%

-

       

$              188

 

186

1.2%

1.2%

-

Intl

 

260

 

344

-24.3%

-16.6%

-7.7%

       

529

 

651

-18.7%

-12.6%

-6.1%

WW

 

356

 

443

-19.7%

-13.6%

-6.1%

       

717

 

837

-14.3%

-9.5%

-4.8%

ORAL CARE

                                 

US

 

170

 

155

9.7%

9.7%

-

       

346

 

306

12.9%

12.9%

-

Intl

 

227

 

234

-2.8%

4.0%

-6.8%

       

446

 

450

-0.8%

4.6%

-5.4%

WW

 

397

 

389

2.2%

6.3%

-4.1%

       

792

 

756

4.8%

8.0%

-3.2%

OTC

                                 

US

 

627

 

484

29.6%

29.6%

-

       

1,316

 

991

32.8%

32.8%

-

Intl

 

522

 

580

-10.1%

-5.0%

-5.1%

       

1,181

 

1,160

1.8%

6.0%

-4.2%

WW

 

1,149

 

1,064

7.9%

10.7%

-2.8%

       

2,497

 

2,151

16.1%

18.3%

-2.2%

SKIN HEALTH / BEAUTY(4)

                                 

US

 

536

 

663

-19.2%

-19.2%

-

       

1,195

 

1,251

-4.5%

-4.5%

-

Intl

 

471

 

539

-12.5%

-8.2%

-4.3%

       

929

 

1,041

-10.7%

-7.4%

-3.3%

WW

 

1,007

 

1,202

-16.2%

-14.3%

-1.9%

       

2,124

 

2,292

-7.3%

-5.8%

-1.5%

WOMEN'S HEALTH

                                 

US

 

3

 

3

-2.9%

-2.9%

-

       

7

 

6

14.3%

14.3%

-

Intl

 

199

 

250

-20.4%

-12.0%

-8.4%

       

427

 

472

-9.6%

-2.1%

-7.5%

WW

 

202

 

253

-20.1%

-11.8%

-8.3%

       

434

 

478

-9.3%

-1.9%

-7.4%

WOUND CARE / OTHER

                                 

US

 

126

 

132

-4.7%

-4.7%

-

       

245

 

234

4.7%

4.7%

-

Intl

 

59

 

61

-2.4%

3.7%

-6.1%

       

111

 

114

-1.9%

2.8%

-4.7%

WW

 

185

 

193

-4.0%

-2.1%

-1.9%

       

356

 

348

2.6%

4.1%

-1.5%

                                   

TOTAL CONSUMER HEALTH

                                 

US

 

1,557

 

1,537

1.3%

1.3%

-

       

3,297

 

2,975

10.8%

10.8%

-

Intl

 

1,739

 

2,007

-13.4%

-7.4%

-6.0%

       

3,624

 

3,887

-6.8%

-1.9%

-4.9%

WW

 

$             3,296

 

3,544

-7.0%

-3.6%

-3.4%

       

$           6,921

 

6,862

0.9%

3.6%

-2.7%

                                   
                                   

See footnotes at end of schedule

                                 

 

 

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

     

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 
 

SECOND QUARTER

 

SIX MONTHS

 
         

% Change

             

% Change

 

PHARMACEUTICAL SEGMENT (2,5)

 

2020

 

2019

Reported

Operational (1)

Currency

       

2020

 

2019

Reported

Operational (1)

Currency

                                   

IMMUNOLOGY

                                 

US

 

$             2,362

 

2,379

-0.7%

-0.7%

-

       

$           4,772

 

4,542

5.1%

5.1%

-

Intl

 

1,161

 

1,087

6.8%

11.0%

-4.2%

       

2,389

 

2,175

9.8%

13.7%

-3.9%

WW

 

3,523

 

3,466

1.6%

3.0%

-1.4%

       

7,161

 

6,717

6.6%

7.9%

-1.3%

REMICADE

                                 

US 

 

593

 

801

-25.8%

-25.8%

-

       

1,218

 

1,575

-22.7%

-22.7%

-

US Exports (6)

 

133

 

62

*

*

-

       

243

 

138

75.7%

75.7%

-

Intl

 

208

 

244

-14.5%

-8.7%

-5.8%

       

464

 

496

-6.4%

-1.6%

-4.8%

WW

 

935

 

1,107

-15.5%

-14.2%

-1.3%

       

1,925

 

2,209

-12.9%

-11.8%

-1.1%

SIMPONI / SIMPONI ARIA

                                 

US

 

256

 

281

-8.7%

-8.7%

-

       

528

 

544

-2.9%

-2.9%

-

Intl

 

289

 

282

2.6%

6.8%

-4.2%

       

547

 

543

0.8%

4.8%

-4.0%

WW

 

546

 

563

-3.0%

-0.9%

-2.1%

       

1,075

 

1,087

-1.1%

1.0%

-2.1%

STELARA

                                 

US

 

1,138

 

1,058

7.5%

7.5%

-

       

2,355

 

1,940

21.4%

21.4%

-

Intl

 

558

 

499

11.9%

15.5%

-3.6%

       

1,161

 

1,022

13.6%

16.9%

-3.3%

WW

 

1,697

 

1,558

8.9%

10.1%

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