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Johnson & Johnson Reports Q4 and Full-Year 2023 Results

01/23/2024
  • 2023 Fourth-Quarter reported sales growth of 7.3% to $21.4 Billion with operational growth of 7.2%* and adjusted operational growth of 5.7%*. Operational growth excluding COVID-19 Vaccine of 10.9%*
  • 2023 Fourth-Quarter Earnings per share (EPS) of $1.70 increasing 39.3% and adjusted EPS of $2.29 increasing by 11.7%* 
  • 2023 Full-Year reported sales growth of 6.5% to $85.2 Billion with operational growth of 7.4%* and adjusted operational growth of 5.9%*. Operational growth excluding COVID-19 Vaccine of 9.0%*
  • 2023 Full-Year EPS of $5.20 decreasing 15.3% due to a special one-time charge in the First-Quarter, and adjusted EPS of $9.92 increasing by 11.1%* 
  • Company re-confirms guidance for 2024 with operational sales5 growth of 5.0% - 6.0%* and adjusted operational EPS of $10.55 - $10.75, reflecting growth of 7.4%* at the mid-point

Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2023. “Johnson & Johnson’s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients,” said Joaquin Duato, Chairman and Chief Executive Officer. “We have entered 2024 from a position of strength, and I am confident in our ability to lead the next wave of health innovation.”

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

Overall Financial Results

 

Q4

 

Full Year

($ in Millions, except EPS)

2023

2022

% Change

 

2023

2022

% Change

Reported Sales

$21,395

$19,939

7.3%

 

$85,159

$79,990

6.5%

Net Earnings

$4,132

$3,227

28.0%

 

$13,326

$16,370

(18.6)%

EPS (diluted)

$1.70

$1.22

39.3%

 

$5.20

$6.14

(15.3)%

 

 

 

 

 

 

 

 

Q4

 

Full Year

Non-GAAP* ($ in Millions, except EPS)

2023

2022

% Change

 

2023

2022

% Change

Operational Sales1,2

 

 

7.2%

 

 

 

7.4%

Adjusted Operational Sales1,3

 

 

5.7%

 

 

 

5.9%

Adjusted Net Earnings1,4

$5,562

$5,432

2.4%

 

$25,409

$23,796

6.8%

Adjusted EPS (diluted)1,4

$2.29

$2.05

11.7%

 

$9.92

$8.93

11.1%

1  

Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2  

Excludes the impact of translational currency

3  

Excludes the net impact of acquisitions and divestitures and translational currency

4  

Excludes intangible amortization expense and special items

5  

Excludes COVID-19 Vaccine

   

Note: Values may have been rounded

     

Regional Sales Results

Q4

 

% Change

($ in Millions)

2023

2022

Reported

Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$12,009

$10,820

11.0%

11.0

-

8.8

International

9,386

9,119

2.9

2.7

0.2

2.1

Worldwide

$21,395

$19,939

7.3%

7.2

0.1

5.7

Full Year

 

% Change

($ in Millions)

2023

2022

Reported

Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$46,444

$41,981

10.6%

10.6

-

8.2

International

38,715

38,009

1.9

3.8

(1.9)

3.4

Worldwide

$85,159

$79,990

6.5%

7.4

(0.9)

5.9

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

Q4

 

% Change

 

($ in Millions)

2023

2022

Reported

Operational1,2

Currency

Adjusted Operational1,3

 
 

Innovative Medicine

$13,722

$13,163

4.2%

4.0

0.2

4.0

 

MedTech

7,673

6,776

13.3

13.4

(0.1)

9.1

 

Worldwide

$21,395

$19,939

7.3%

7.2

0.1

5.7

 
               

Full Year

 

% Change

 

($ in Millions)

2023

2022

Reported

Operational1,2

Currency

Adjusted Operational1,3

 
 

Innovative Medicine

$54,759

$52,563

4.2%

4.8

(0.6)

4.9

 

MedTech

30,400

27,427

10.8

12.4

(1.6)

7.8

 

Worldwide

$85,159

$79,990

6.5%

7.4

(0.9)

5.9

 
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: The Innovative Medicine segment was previously referred to as the Pharmaceutical segment

   

Values may have been rounded

     

Full Year 2023 Segment Commentary:

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

Innovative Medicine

Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 7.2%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), TECVAYLI (teclistamab-cqyv) in Other Oncology, and CARVYKTI (ciltacabtagene autoleucel) in Oncology, STELARA (ustekinumab) and TREMFYA (guselkumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by ZYTIGA (abiraterone acetate) and IMBRUVICA (ibrutinib) in Oncology, and REMICADE (infliximab) in Immunology. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 4.8%*.

MedTech

MedTech worldwide operational sales grew 12.4%*, with the acquisition of Abiomed contributing 4.7%. MedTech worldwide adjusted operational sales grew 7.8%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, wound closure products in General Surgery, and biosurgery in Advanced Surgery.

Notable New Announcements in the Quarter:

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

Regulatory

U.S. Food and Drug Administration Grants Full Approval for BALVERSA to Treat Locally

Advanced or Metastatic Bladder Cancer with Select Genetic Alterations1

Press Release

Biosense Webster Announces Regulatory Approval of VARIPULSE Pulsed Field Ablation (PFA) Platform in Japan1

Press Release

Janssen Submits Marketing Authorisation Application to the European Medicines Agency Seeking Approval of Lazertinib, in combination with RYBREVANT (amivantamab), for the First-Line Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer

Press Release

Johnson & Johnson Submits Supplemental Biologics License Application and New Drug Application to U.S. FDA Seeking Approval of RYBREVANT (amivantamab-vmjw) Plus Lazertinib for the Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer (NSCLC)

Press Release

Johnson & Johnson’s Investigational TAR-200 Granted U.S. FDA Breakthrough Therapy Designation for the Treatment of High-Risk Non-Muscle-Invasive Bladder Cancer

Press Release

Janssen Submits Application to the European Medicines Agency for RYBREVANT (amivantamab) in Combination with Chemotherapy for the Treatment of Adult Patients with Advanced EGFR-Mutated Non-Small Cell Lung Cancer After Failure of Prior Therapy

Press Release

Janssen Submits Supplemental Biologics License Application to U.S. FDA Seeking Approval of RYBREVANT (amivantamab-vmjw) Plus Chemotherapy for the Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer Who Progressed on or after Osimertinib

Press Release

MONARCH Platform for Bronchoscopy Receives Regulatory License for China

Press Release

Data Release

Johnson & Johnson highlights its preeminent leadership in hematology through differentiated blood cancer portfolio and pipeline with new clinical and real-world data at ASH

Press Release

New Real-World Data Show TREMFYA (guselkumab) Was Associated With Clinically Meaningful Improvements in Patient-Reported Outcomes for Adults Living With Active Psoriatic Arthritis

Press Release

Phase 2 Nipocalimab Data Establish Proof of Mechanism in Adults Living with Moderate to Severe Rheumatoid Arthritis, Supporting its Progression into a Combination Study

Press Release

New Biosense Webster QDOT MICRO Catheter Data Demonstrate Very High-Power, Short-Duration Ablations Improved Quality of Life and Reduced Healthcare Utilization for AFib Patients

Press Release

New Phase 3 TREMFYA (guselkumab) Results in Ulcerative Colitis Show a 77 Percent Overall Clinical Response Rate and Early Symptom Improvement

Press Release

Janssen Aims to Define New Standards of Care in the Treatment of Solid Tumor Cancers with Transformative Data Planned for Presentation at ESMO

Press Release

Product Launch

Ethicon Introduces ETHIZIA Hemostatic Sealing Patch, Clinically Proven to Stop Disruptive Bleeding

Press Release

Other

Johnson & Johnson to Acquire Ambrx, Advancing Next Generation Antibody Drug Conjugates to Transform the Treatment of Cancer1

Press Release

Johnson & Johnson Announces Key Drivers for Long-Term Competitive Growth at Enterprise Business Review

Press Release

Johnson & Johnson Names Eugene A. Woods, Chief Executive Officer of Advocate Health, to its Board of Directors

Press Release

Johnson & Johnson MedTech Acquires Laminar, Inc.

Press Release

Johnson & Johnson MedTech Provides Details and Timeline for General Surgery Robot

Press Release

Johnson & Johnson Announces Departure of Ashley McEvoy, Tim Schmid Named Executive Vice President, Worldwide Chairman of MedTech

Press Release

Subsequent to the quarter

 

Full-Year 2024 Guidance:

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

($ in Billions, except EPS)

January 2024

December 2023

Adjusted Operational Sales1,2,5

Change vs. Prior Year / Mid-point

5.0% – 6.0% / 5.5%

 

Operational Sales2,5/ Mid-point

Change vs. Prior Year / Mid-point

$88.2B – $89.0B / $88.6B

5.0% – 6.0% / 5.5%

5.0% – 6.0% / 5.5%

Estimated Reported Sales3,5/ Mid-point

Change vs. Prior Year / Mid-point

$87.8B – $88.6B / $88.2B

4.5% – 5.5% / 5.0%

 

 

 

 

Adjusted Operational EPS (Diluted)2,4/ Mid-point

Change vs. Prior Year / Mid-point

$10.55 – $10.75 / $10.65

6.4% – 8.4% / 7.4%

$10.55 – $10.75 / $10.65

7.3% Mid-point

Adjusted EPS (Diluted)3,4 / Mid-point

Change vs. Prior Year / Mid-point

$10.55 – $10.75 / $10.65

6.4% – 8.4% / 7.4%

 

Average Shares Outstanding (Diluted)6

~2,435 million

 

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 2024 = $1.09 and December 2023 = $1.09 (Illustrative purposes only)

4  

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

5  

Excludes COVID-19 Vaccine

6  

Full Year 2024 Projected Average Shares Outstanding (Diluted) reflects impact from the Kenvue exchange offer

   

Note: Percentages may have been rounded

     

Other modeling considerations will be provided on the webcast.

Webcast Information:

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

About Johnson & Johnson:

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

Non-GAAP Financial Measures:

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

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

Note to Investors Concerning Forward-Looking Statements:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to realize the anticipated benefits from the separation of the Company’s Consumer Health business; 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.govwww.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
 

2023

 

2022

 

Total

 

Operations

 

Currency

 

2023

 

2022

 

Total

 

Operations

 

Currency

Sales to customers by                                      
segment of business                                      
                                       
Innovative Medicine (1,2)                                      
U.S.

 

8,079

 

7,375

 

9.5

 

 

9.5

 

 

-

 

 

 

31,169

 

28,604

 

9.0

 

 

9.0

 

 

-

 

International

 

5,643

 

5,788

 

(2.5

)

 

(3.1

)

 

0.6

 

 

 

23,590

 

23,959

 

(1.5

)

 

(0.2

)

 

(1.3

)

 

 

13,722

 

13,163

 

4.2

 

 

4.0

 

 

0.2

 

 

 

54,759

 

52,563

 

4.2

 

 

4.8

 

 

(0.6

)

                                       
Innovative Medicine excluding COVID-19 Vaccine (1,2)                                      
U.S.

 

8,079

 

7,375

 

9.5

 

 

9.5

 

 

-

 

 

 

31,169

 

28,484

 

9.4

 

 

9.4

 

 

-

 

International

 

5,599

 

5,099

 

9.8

 

 

9.4

 

 

0.4

 

 

 

22,473

 

21,900

 

2.6

 

 

4.3

 

 

(1.7

)

 

 

13,678

 

12,474

 

9.7

 

 

9.5

 

 

0.2

 

 

 

53,642

 

50,384

 

6.5

 

 

7.2

 

 

(0.7

)

                                       
MedTech                                      
U.S.

 

3,930

 

3,445

 

14.1

 

 

14.1

 

 

-

 

 

 

15,275

 

13,377

 

14.2

 

 

14.2

 

 

-

 

International

 

3,743

 

3,331

 

12.4

 

 

12.8

 

 

(0.4

)

 

 

15,125

 

14,050

 

7.7

 

 

10.6

 

 

(2.9

)

 

 

7,673

 

6,776

 

13.3

 

 

13.4

 

 

(0.1

)

 

 

30,400

 

27,427

 

10.8

 

 

12.4

 

 

(1.6

)

                                       
U.S.

 

12,009

 

10,820

 

11.0

 

 

11.0

 

 

-

 

 

 

46,444

 

41,981

 

10.6

 

 

10.6

 

 

-

 

International

 

9,386

 

9,119

 

2.9

 

 

2.7

 

 

0.2

 

 

 

38,715

 

38,009

 

1.9

 

 

3.8

 

 

(1.9

)

Worldwide

 

21,395

 

19,939

 

7.3

 

 

7.2

 

 

0.1

 

 

 

85,159

 

79,990

 

6.5

 

 

7.4

 

 

(0.9

)

                                       
U.S.

 

12,009

 

10,820

 

11.0

 

 

11.0

 

 

-

 

 

 

46,444

 

41,861

 

10.9

 

 

10.9

 

 

-

 

International

 

9,342

 

8,430

 

10.8

 

 

10.7

 

 

0.1

 

 

 

37,598

 

35,950

 

4.6

 

 

6.7

 

 

(2.1

)

Worldwide excluding COVID-19 Vaccine (1)

$

21,351

 

19,250

 

10.9

 

%

10.9

 

 

0.0

 

 

$

84,042

 

77,811

 

8.0

 

%

9.0

 

 

(1.0

)

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
 
(1) Refer to supplemental sales reconciliation schedule
(2) Previously referred to as Pharmaceutical
 
                                       
Johnson & Johnson and Subsidiaries                                      
Supplementary Sales Data                                      
                                       
(Unaudited; Dollars in Millions) FOURTH QUARTER   TWELVE MONTHS
          Percent Change           Percent Change
 

2023

 

2022

  Total   Operations   Currency  

2023

 

2022

  Total   Operations   Currency
Sales to customers by                                      
geographic area                                      
                                       
U.S.

$

12,009

 

10,820

 

11.0

 

%

11.0

 

 

-

 

 

$

46,444

 

41,981

 

10.6

 

%

10.6

 

 

-

 

                                       
Europe

 

4,962

 

5,124

 

(3.2

)

 

(5.8

)

 

2.6

 

 

 

20,410

 

20,664

 

(1.2

)

 

(2.2

)

 

1.0

 

Western Hemisphere excluding U.S.

 

1,166

 

1,024

 

14.0

 

 

18.1

 

 

(4.1

)

 

 

4,549

 

4,108

 

10.7

 

 

15.8

 

 

(5.1

)

Asia-Pacific, Africa

 

3,258

 

2,971

 

9.7

 

 

12.1

 

 

(2.4

)

 

 

13,756

 

13,237

 

3.9

 

 

9.5

 

 

(5.6

)

International

 

9,386

 

9,119

 

2.9

 

 

2.7

 

 

0.2

 

 

 

38,715

 

38,009

 

1.9

 

 

3.8

 

 

(1.9

)

                                       
Worldwide

$

21,395

 

19,939

 

7.3

 

%

7.2

 

 

0.1

 

 

$

85,159

 

79,990

 

6.5

 

%

7.4

 

 

(0.9

)

                                       
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
                   
 

2023

 

2022

  Percent
 

 

 

Percent

 

 

 

Percent

  Increase
 

Amount

 

to Sales

 

Amount

 

to Sales

  (Decrease)
Sales to customers

$

21,395

 

 

100.0

 

$

19,939

 

 

100.0

 

7.3

Cost of products sold

 

6,798

 

 

31.8

 

 

6,084

 

 

30.5

 

11.7

Gross Profit

 

14,597

 

 

68.2

 

 

13,855

 

 

69.5

 

5.4

Selling, marketing and administrative expenses

 

5,810

 

 

27.1

 

 

5,339

 

 

26.8

 

8.8

Research and development expense

 

4,480

 

 

20.9

 

 

3,710

 

 

18.6

 

20.8

In-process research and development impairments

 

58

 

 

0.3

 

 

173

 

 

0.8

   
Interest (income) expense, net

 

(212

)

 

(1.0)

 

 

(77

)

 

(0.4)

   
Other (income) expense, net

 

(421

)

 

(2.0)

 

 

795

 

 

4.0

   
Restructuring

 

56

 

 

0.3

 

 

75

 

 

0.4

   
Earnings before provision for taxes on income

 

4,826

 

 

22.6

 

 

3,840

 

 

19.3

 

25.7

Provision for taxes on income

 

694

 

 

3.3

 

 

613

 

 

3.1

 

13.2

Net earnings from Continuing Operations

$

4,132

 

 

19.3

 

$

3,227

 

 

16.2

 

28.0

Net earnings/(loss) from Discontinued Operations, net of tax

 

(83

)

     

 

293

 

       
Net earnings

$

4,049

 

     

$

3,520

 

       
                   
Net earnings per share (Diluted) from Continuing Operations

$

1.70

 

     

$

1.22

 

     

39.3

Net earnings/(loss) per share (Basic/Diluted) from Discontinued Operations*

$

(0.03

)

     

$

0.11

 

       
                   
Average shares outstanding (Diluted)

 

2,430.7

 

     

 

2,650.1

 

       
                   
Effective tax rate from Continuing Operations

 

14.4

 

%

   

 

16.0

 

%

     
                   
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)                  
Earnings before provision for taxes on income from Continuing Operations

$

6,237

 

 

29.2

 

$

6,482

 

 

32.5

 

(3.8)

Net earnings from Continuing Operations

$

5,562

 

 

26.0

 

$

5,432

 

 

27.2

 

2.4

Net earnings per share (Diluted) from Continuing Operations

$

2.29

 

     

$

2.05

 

     

11.7

Effective tax rate from Continuing Operations

 

10.8

 

%

   

 

16.2

 

%

     
                   
* Basic shares of 2,407.2 are used to calculate loss per share in the fourth quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive.
(1) See Reconciliation of Non-GAAP Financial Measures.
 
                   
Johnson & Johnson and Subsidiaries                  
Condensed Consolidated Statement of Earnings                  
                   
(Unaudited; in Millions Except Per Share Figures) TWELVE MONTHS
                   
 

2023

 

2022

 

Percent

 

 

 

Percent

 

 

 

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

85,159

 

100.0

 

$

79,990

 

100.0

 

6.5

Cost of products sold

 

26,553

 

31.2

 

 

24,596

 

30.7

 

8.0

Gross Profit

 

58,606

 

68.8

 

 

55,394

 

69.3

 

5.8

Selling, marketing and administrative expenses

 

21,512

 

25.2

 

 

20,246

 

25.3

 

6.3

Research and development expense

 

15,085

 

17.7

 

 

14,135

 

17.7

 

6.7

In-process research and development impairments

 

313

 

0.4

 

 

783

 

1.0

   
Interest (income) expense, net

 

(489)

 

(0.6)

 

 

(214)

 

(0.3)

   
Other (income) expense, net

 

6,634

 

7.8

 

 

810

 

1.0

   
Restructuring

 

489

 

0.6

 

 

275

 

0.4

   
Earnings before provision for taxes on income

 

15,062

 

17.7

 

 

19,359

 

24.2

 

(22.2)

Provision for taxes on income

 

1,736

 

2.1

 

 

2,989

 

3.7

 

(41.9)

Net earnings from Continuing Operations

$

13,326

 

15.6

 

$

16,370

 

20.5

 

(18.6)

Net earnings from Discontinued Operations, net of tax

 

21,827

     

 

1,571

       
Net earnings

$

35,153

     

$

17,941

       
                   
Net earnings per share (Diluted) from Continuing Operations

$

5.20

     

$

6.14

     

(15.3)

Net earnings per share (Diluted) from Discontinued Operations

$

8.52

     

$

0.59

       
                   
Average shares outstanding (Diluted)

 

2,560.4

     

 

2,663.9

       
                   
Effective tax rate from Continuing Operations

 

11.5

%

   

 

15.4

%

     
                   
Adjusted earnings from continuing operations before provision for taxes and net earnings (1)                  
Earnings before provision for taxes on income from Continuing Operations

$

29,811

 

35.0

 

$

27,973

 

35.0

 

6.6

Net earnings from Continuing Operations

$

25,409

 

29.8

 

$

23,796

 

29.7

 

6.8

Net earnings per share (Diluted) from Continuing Operations

$

9.92

     

$

8.93

     

11.1

Effective tax rate from Continuing Operations

 

14.8

%

   

 

14.9

%

     
                   
(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)  

2023

 

2022

 

2023

 

2022

Net Earnings from Continuing Operations, after tax- as reported  

$4,132

 

$3,227

 

$13,326

 

$16,370

                 
Pre-tax Adjustments                
Litigation related  

166

 

262

 

7,152

 

866

Intangible Asset Amortization expense  

1,148

 

977

 

4,532

 

3,944

COVID-19 Vaccine related costs 1  

10

 

821

 

663

 

1,474

Restructuring related 2  

139

 

119

 

798

 

372

Medical Device Regulation 3  

88

 

88

 

311

 

296

Acquisition, integration and divestiture related  

237

 

196

 

339

 

196

(Gains)/losses on securities  

(435)

 

6

 

641

 

690

IPR&D impairments  

58

 

173

 

313

 

783

Other  

-

 

-

 

-

 

(7)

                 
Tax Adjustments                
Tax impact on special item adjustments 4  

75

 

(394)

 

(2,694)

 

(1,294)

Tax legislation and other tax related  

(56)

 

(43)

 

28

 

106

Adjusted Net Earnings from Continuing Operations, after tax  

$5,562

 

$5,432

 

$25,409

 

$23,796

Average shares outstanding (Diluted)  

2,430.7

 

2,650.1

 

2,560.4

 

2,663.9

Adjusted net earnings per share from Continuing Operations (Diluted)  

$2.29

 

$2.05

 

$9.92

 

$8.93

Operational adjusted net earnings per share from Continuing Operations (Diluted)  

$2.28

     

$9.89

   
                 
   

Notes:

1  

COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.

     
2  

In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expenses of $55 million in the quarter ($479 million Q4 YTD) include the termination of partnered and non-partnered program costs and asset impairments.

     
   

In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expenses of $84 million in the quarter ($319 million Q4 YTD) primarily includes inventory and instrument reserves related to the market and product exits.

     
3  

European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which 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
FOURTH QUARTER 2023 ACTUAL vs. 2022 ACTUAL
 
Segments
             
    Innovative Medicine   MedTech   Total
             
WW As Reported  

4.2%

 

13.3%

 

7.3%

U.S.  

9.5%

 

14.1%

 

11.0%

International  

(2.5)%

 

12.4%

 

2.9%

   

 

 

 

 

 

WW Currency  

0.2

 

(0.1)

 

0.1

U.S.  

-

 

-

 

-

International  

0.6

 

(0.4)

 

0.2

   

 

 

 

 

 

WW Operational  

4.0%

 

13.4%

 

7.2%

U.S.  

9.5%

 

14.1%

 

11.0%

International  

(3.1)%

 

12.8%

 

2.7%

   

 

 

 

 

 

Abiomed  

 

 

(4.5)

 

(1.6)

U.S.  

 

 

(7.2)

 

(2.3)

International  

 

 

(1.9)

 

(0.7)

   

 

 

 

 

 

All Other Acquisitions and Divestitures  

0.0

 

0.2

 

0.1

U.S.  

0.0

 

0.3

 

0.1

International  

0.1

 

0.1

 

0.1

   

 

 

 

 

 

WW Adjusted Operational  

4.0%

 

9.1%

 

5.7%

U.S.  

9.5%

 

7.2%

 

8.8%

International  

(3.0)%

 

11.0%

 

2.1%

             
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 2023 ACTUAL vs. 2022 ACTUAL
 
Segments
             
   

Innovative Medicine

 

MedTech

 

Total

   

 

 

 

 

 

WW As Reported  

4.2%

 

10.8%

 

6.5%

U.S.  

9.0%

 

14.2%

 

10.6%

International  

(1.5)%

 

7.7%

 

1.9%

   

 

 

 

 

 

WW Currency  

(0.6)

 

(1.6)

 

(0.9)

U.S.  

-

 

-

 

-

International  

(1.3)

 

(2.9)

 

(1.9)

   

 

 

 

 

 

WW Operational  

4.8%

 

12.4%

 

7.4%

U.S.  

9.0%

 

14.2%

 

10.6%

International  

(0.2)%

 

10.6%

 

3.8%

   

 

 

 

 

 

Abiomed  

 

 

(4.7)

 

(1.6)

U.S.  

 

 

(7.7)

 

(2.5)

International  

 

 

(1.7)

 

(0.6)

   

 

 

 

 

 

All Other Acquisitions and Divestitures  

0.1

 

0.1

 

0.1

U.S.  

0.0

 

0.1

 

0.1

International  

0.2

 

0.1

 

0.2

   

 

 

 

 

 

WW Adjusted Operational  

4.9%

 

7.8%

 

5.9%

U.S.  

9.0%

 

6.6%

 

8.2%

International  

0.0%

 

9.0%

 

3.4%

             
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  
INNOVATIVE MEDICINE SEGMENT (2,3,4)  

2023

 

2022

Reported Operational (1) Currency        

2023

 

2022

Reported Operational (1) Currency  
                                       
IMMUNOLOGY                                      
US  

$3,033

 

2,805

8.1%

8.1%

-

       

$

11,539

 

11,036

4.6%

4.6%

-

 
Intl  

1,562

 

1,312

19.0%

17.7%

1.3%

       

 

6,513

 

5,899

10.4%

12.0%

-1.6%

 
WW  

4,595

 

4,118

11.6%

11.2%

0.4%

       

 

18,052

 

16,935

6.6%

7.1%

-0.5%

 
REMICADE                                      
US  

294

 

318

-7.4%

-7.4%

-

       

 

1,143

 

1,417

-19.3%

-19.3%

-

 
US Exports (5)  

35

 

41

-15.1%

-15.1%

-

       

 

147

 

204

-28.0%

-28.0%

-

 
Intl  

100

 

116

-13.4%

-12.4%

-1.0%

       

 

549

 

722

-23.9%

-21.3%

-2.6%

 
WW  

429

 

475

-9.6%

-9.4%

-0.2%

       

 

1,839

 

2,343

-21.5%

-20.7%

-0.8%

 
SIMPONI / SIMPONI ARIA                                      
US  

258

 

280

-7.8%

-7.8%

-

       

 

1,124

 

1,166

-3.6%

-3.6%

-

 
Intl  

244

 

220

10.1%

11.8%

-1.7%

       

 

1,073

 

1,017

5.4%

9.3%

-3.9%

 
WW  

502

 

501

0.1%

0.8%

-0.7%

       

 

2,197

 

2,184

0.6%

2.4%

-1.8%

 
STELARA                                      
US  

1,786

 

1,621

10.1%

10.1%

-

       

 

6,966

 

6,388

9.0%

9.0%

-

 
Intl  

967

 

764

26.4%

23.9%

2.5%

       

 

3,892

 

3,335

16.7%

17.4%

-0.7%

 
WW  

2,753

 

2,386

15.3%

14.5%

0.8%

       

 

10,858

 

9,723

11.7%

11.9%

-0.2%

 
TREMFYA                                      
US  

657

 

541

21.6%

21.6%

-

       

 

2,147

 

1,844

16.5%

16.5%

-

 
Intl  

252

 

211

19.4%

17.8%

1.6%

       

 

999

 

824

21.2%

22.4%

-1.2%

 
WW  

910

 

752

21.0%

20.5%

0.5%

       

 

3,147

 

2,668

17.9%

18.3%

-0.4%

 
OTHER IMMUNOLOGY                                      
US  

2

 

3

-22.8%

-22.8%

-

       

 

11

 

17

-33.8%

-33.8%

-

 
Intl  

0

 

0

-

-

-

       

 

0

 

0

-

-

-

 
WW  

2

 

3

-22.8%

-22.8%

-

       

 

11

 

17

-33.8%

-33.8%

-

 
INFECTIOUS DISEASES                                      
US  

353

 

414

-14.6%

-14.6%

-

       

 

1,500

 

1,680

-10.7%

-10.7%

-

 
Intl  

498

 

1,127

-55.8%

-58.2%

2.4%

       

 

2,918

 

3,769

-22.6%

-23.9%

1.3%

 
WW  

852

 

1,540

-44.7%

-46.5%

1.8%

       

 

4,418

 

5,449

-18.9%

-19.8%

0.9%

 
COVID-19 VACCINE                                      
US  

0

 

0

-

-

-

       

 

0

 

120

* *

-

 
Intl  

44

 

689

-93.7%

-95.2%

1.5%

       

 

1,117

 

2,059

-45.8%

-47.2%

1.4%

 
WW  

44

 

689

-93.7%

-95.2%

1.5%

       

 

1,117

 

2,179

-48.8%

-50.1%

1.3%

 
EDURANT / rilpivirine                                      
US  

9

 

9

-12.4%

-12.4%

-

       

 

35

 

36

-3.7%

-3.7%

-

 
Intl  

299

 

281

6.4%

1.5%

4.9%

       

 

1,115

 

972

14.8%

12.1%

2.7%

 
WW  

307

 

290

5.8%

1.0%

4.8%

       

 

1,150

 

1,008

14.1%

11.5%

2.6%

 
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA                                      
US  

341

 

398

-14.4%

-14.4%

-

       

 

1,446

 

1,494

-3.2%

-3.2%

-

 
Intl  

98

 

95

3.1%

-0.8%

3.9%

       

 

408

 

449

-9.2%

-10.4%

1.2%

 
WW  

439

 

493

-11.0%

-11.8%

0.8%

       

 

1,854

 

1,943

-4.6%

-4.9%

0.3%

 
OTHER INFECTIOUS DISEASES                                      
US  

4

 

6

-30.4%

-30.4%

-

       

 

19

 

30

-34.5%

-34.5%

-

 
Intl  

58

 

61

-5.6%

-4.9%

-0.7%

       

 

278

 

289

-3.8%

-0.4%

-3.4%

 
WW  

62

 

67

-7.8%

-7.1%

-0.7%

       

 

297

 

318

-6.7%

-3.6%

-3.1%

 
                                       
                                       
                                       
                                       
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FOURTH QUARTER

     

TWELVE MONTHS

          % Change                 % Change  
   

2023

 

2022

Reported

Operational (1)

Currency

 

 

 

 

 

2023

 

2022

Reported

Operational (1)

Currency

 
NEUROSCIENCE                                      
US  

1,022

 

912

12.1%

12.1%

-

       

 

4,065

 

3,570

13.9%

13.9%

-

 
Intl  

780

 

825

-5.5%

-2.0%

-3.5%

       

 

3,076

 

3,323

-7.5%

-3.7%

-3.8%

 
WW  

1,801

 

1,737

3.7%

5.4%

-1.7%

       

 

7,140

 

6,893

3.6%

5.4%

-1.8%

 
CONCERTA / Methylphenidate                                      
US  

39

 

37

5.7%

5.7%

-

       

 

230

 

151

52.5%

52.5%

-

 
Intl  

142

 

131

7.9%

9.2%

-1.3%

       

 

554

 

493

12.2%

16.4%

-4.2%

 
WW  

180

 

168

7.4%

8.5%

-1.1%

       

 

783

 

644

21.6%

24.9%

-3.3%

 
INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA
                                     
US  

733

 

678

8.0%

8.0%

-

       

 

2,897

 

2,714

6.7%

6.7%

-

 
Intl  

278

 

329

-15.5%

-15.7%

0.2%

       

 

1,218

 

1,426

-14.6%

-12.8%

-1.8%

 
WW  

1,011

 

1,008

0.3%

0.3%

0.0%

       

 

4,115

 

4,140

-0.6%

0.0%

-0.6%

 
SPRAVATO                                      
US  

180

 

105

72.3%

72.3%

-

       

 

589

 

328

79.7%

79.7%

-

 
Intl  

26

 

14

87.1%

83.4%

3.7%

       

 

100

 

46

* * *  
WW  

206

 

119

74.1%

73.6%

0.5%

       

 

689

 

374

84.1%

84.0%

0.1%

 
OTHER NEUROSCIENCE                                      
US  

71

 

91

-23.0%

-23.0%

-

       

 

349

 

376

-7.3%

-7.3%

-

 
Intl  

334

 

351

-5.0%

3.2%

-8.2%

       

 

1,204

 

1,358

-11.3%

-5.4%

-5.9%

 
WW  

404

 

442

-8.7%

-2.3%

-6.4%

       

 

1,553

 

1,734

-10.4%

-5.9%

-4.5%

 
ONCOLOGY                                      
US  

2,285

 

1,857

23.0%

23.0%

-

       

 

8,462

 

6,930

22.1%

22.1%

-

 
Intl  

2,334

 

2,069

12.8%

12.0%

0.8%

       

 

9,199

 

9,052

1.6%

2.9%

-1.3%

 
WW  

4,618

 

3,927

17.6%

17.2%

0.4%

       

 

17,661

 

15,983

10.5%

11.2%

-0.7%

 
CARVYKTI                                      
US  

145

 

54

* *

-

       

 

469

 

133

* *

-

 
Intl  

13

 

-

* *

-

       

 

30

 

-

* *

-

 
WW  

159

 

54

* *

*

       

 

500

 

133

* * *  
DARZALEX                                      
US  

1,395

 

1,139

22.5%

22.5%

-

       

 

5,277

 

4,210

25.4%

25.4%

-

 
Intl  

1,155

 

944

22.3%

21.8%

0.5%

       

 

4,467

 

3,767

18.6%

20.2%

-1.6%

 
WW  

2,550

 

2,083

22.4%

22.2%

0.2%

       

 

9,744

 

7,977

22.2%

22.9%

-0.7%

 
ERLEADA                                      
US  

287

 

275

4.4%

4.4%

-

       

 

1,065

 

968

10.0%

10.0%

-

 
Intl  

361

 

266

35.6%

34.0%

1.6%

       

 

1,322

 

913

44.8%

46.0%

-1.2%

 
WW  

647

 

541

19.8%

19.0%

0.8%

       

 

2,387

 

1,881

26.9%

27.5%

-0.6%

 
IMBRUVICA                                      
US  

255

 

318

-19.8%

-19.8%

-

       

 

1,051

 

1,390

-24.4%

-24.4%

-

 
Intl  

533

 

547

-2.6%

-3.8%

1.2%

       

 

2,214

 

2,394

-7.5%

-6.7%

-0.8%

 
WW  

788

 

866

-8.9%

-9.7%

0.8%

       

 

3,264

 

3,784

-13.7%

-13.2%

-0.5%

 
ZYTIGA / abiraterone acetate                                      
US  

9

 

20

-52.0%

-52.0%

-

       

 

50

 

74

-32.1%

-32.1%

-

 
Intl  

191

 

250

-23.6%

-23.2%

-0.4%

       

 

837

 

1,696

-50.7%

-49.1%

-1.6%

 
WW  

201

 

270

-25.6%

-25.3%

-0.3%

       

 

887

 

1,770

-49.9%

-48.4%

-1.5%

 
OTHER ONCOLOGY                                      
US  

192

 

52

* *

-

       

 

549

 

156

* *

-

 
Intl  

82

 

63

32.2%

28.4%

3.8%

       

 

330

 

283

16.9%

17.0%

-0.1%

 
WW  

274

 

114

* * *        

 

879

 

438

* * *  
                                       
                                       
                                       
                                       
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

      REPORTED SALES vs. PRIOR PERIOD ($MM)
 

FOURTH QUARTER

     

TWELVE MONTHS

          % Change                 % Change  
   

2023

 

2022

Reported Operational (1) Currency        

 

2023

 

2022

Reported Operational (1) Currency  
PULMONARY HYPERTENSION                                      
US  

733

 

610

20.2%

20.2%

-

       

 

2,697

 

2,346

15.0%

15.0%

-

 
Intl  

282

 

261

8.6%

10.9%

-2.3%

       

 

1,117

 

1,071

4.3%

8.3%

-4.0%

 
WW  

1,017

 

870

16.7%

17.4%

-0.7%

       

 

3,815

 

3,417

11.6%

12.9%

-1.3%

 
OPSUMIT                                      
US  

368

 

305

20.5%

20.5%

-

       

 

1,292

 

1,132

14.1%

14.1%

-

 
Intl  

169

 

156

7.9%

8.3%

-0.4%

       

 

681

 

651

4.6%

7.2%

-2.6%

 
WW  

536

 

461

16.2%

16.3%

-0.1%

       

 

1,973

 

1,783

10.6%

11.6%

-1.0%

 
UPTRAVI                                      
US  

348

 

280

24.3%

24.3%

-

       

 

1,326

 

1,104

20.1%

20.1%

-

 
Intl  

70

 

56

26.4%

31.4%

-5.0%

       

 

255

 

218

17.3%

21.8%

-4.5%

 
WW  

419

 

336

24.6%

25.4%

-0.8%

       

 

1,582

 

1,322

19.7%

20.4%

-0.7%

 
OTHER PULMONARY HYPERTENSION                                      
US  

18

 

24

-29.4%

-29.4%

-

       

 

79

 

110

-28.6%

-28.6%

-

 
Intl  

45

 

48

-9.7%

-3.9%

-5.8%

       

 

182

 

202

-10.3%

-2.9%

-7.4%

 
WW  

61

 

73

-16.2%

-12.4%

-3.8%

       

 

260

 

313

-16.7%

-12.0%

-4.7%

 
CARDIOVASCULAR / METABOLISM / OTHER                                      
US  

652

 

776

-15.9%

-15.9%

-

       

 

2,906

 

3,042

-4.5%

-4.5%

-

 
Intl  

185

 

194

-4.7%

-6.7%

2.0%

       

 

765

 

845

-9.4%

-9.1%

-0.3%

 
WW  

837

 

971

-13.7%

-14.1%

0.4%

       

 

3,671

 

3,887

-5.5%

-5.5%

0.0%

 
XARELTO                                      
US  

525

 

667

-21.2%

-21.2%

-

       

 

2,365

 

2,473

-4.4%

-4.4%

-

 
Intl  

-

 

-

-

-

-

       

 

-

 

-

-

-

-

 
WW  

525

 

667

-21.2%

-21.2%

-

       

 

2,365

 

2,473

-4.4%

-4.4%

-

 
OTHER                                      
US  

127

 

110

15.9%

15.9%

-

       

 

541

 

569

-5.0%

-5.0%

-

 
Intl  

185

 

194

-4.7%

-6.7%

2.0%

       

 

765

 

845

-9.4%

-9.1%

-0.3%

 
WW  

312

 

304

2.8%

1.5%

1.3%

       

 

1,306

 

1,414

-7.6%

-7.4%

-0.2%

 
                                       
TOTAL INNOVATIVE MEDICINE                                      
US  

8,079

 

7,375

9.5%

9.5%

-

       

 

31,169

 

28,604

9.0%

9.0%

-

 
Intl  

5,643

 

5,788

-2.5%

-3.1%

0.6%

       

 

23,590

 

23,959

-1.5%

-0.2%

-1.3%

 
WW  

$13,722

 

13,163

4.2%

4.0%

0.2%

       

$

54,759

 

52,563

4.2%

4.8%

-0.6%

 
                                       
                                       
See footnotes at end of schedule                                      
                                       
                                       
                                       
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FOURTH QUARTER

   

TWELVE MONTHS

          % Change                 % Change  
MEDTECH SEGMENT (2,3)  

2023

 

2022

Reported

Operational (1)

Currency

 

 

 

 

 

2023

 

2022

Reported Operational (1) Currency  
                                       
INTERVENTIONAL SOLUTIONS                                      
US  

$971

 

603

61.0%

61.0%

-

       

$

3,633

 

2,169

67.5%

67.5%

-

 
Intl  

698

 

495

40.8%

41.7%

-0.9%

       

 

2,717

 

2,131

27.5%

31.7%

-4.2%

 
WW  

1,669

 

1,098

51.9%

52.3%

-0.4%

       

 

6,350

 

4,300

47.7%

49.8%

-2.1%

 
ELECTROPHYSIOLOGY                                      
US  

667

 

547

22.0%

22.0%

-

       

 

2,458

 

2,036

20.7%

20.7%

-

 
Intl  

572

 

447

28.0%

29.0%

-1.0%

       

 

2,230

 

1,901

17.3%

21.5%

-4.2%

 
WW  

1,239

 

994

24.7%

25.2%

-0.5%

       

 

4,688

 

3,937

19.1%

21.1%

-2.0%

 
ABIOMED                                      
US  

276

 

31

* *

-

       

 

1,066

 

31

* *

-

 
Intl  

64

 

-

* *

-

       

 

240

 

-

* *

-

 
WW  

340

 

31

* *

-

       

 

1,306

 

31

* *

-

 
OTHER INTERVENTIONAL SOLUTIONS                                      
US  

28

 

25

8.8%

8.8%

-

       

 

109

 

102

6.7%

6.7%

-

 
Intl  

61

 

48

26.5%

27.1%

-0.6%

       

 

247

 

230

7.3%

11.4%

-4.1%

 
WW  

89

 

73

20.4%

20.7%

-0.3%

       

 

356

 

332

7.1%

9.9%

-2.8%

 
ORTHOPAEDICS                                      
US  

1,425

 

1,385

2.9%

2.9%

-

       

 

5,525

 

5,321

3.8%

3.8%

-

 
Intl  

843

 

763

10.5%

8.8%

1.7%

       

 

3,417

 

3,267

4.6%

5.8%

-1.2%

 
WW  

2,268

 

2,148

5.6%

5.0%

0.6%

       

 

8,942

 

8,587

4.1%

4.6%

-0.5%

 
HIPS                                      
US  

266

 

250

6.3%

6.3%

-

       

 

996

 

943

5.6%

5.6%

-

 
Intl  

132

 

135

-2.0%

-3.9%

1.9%

       

 

564

 

571

-1.2%

-0.1%

-1.1%

 
WW  

398

 

385

3.4%

2.7%

0.7%

       

 

1,560

 

1,514

3.0%

3.5%

-0.5%

 
KNEES                                      
US  

242

 

231

4.5%

4.5%

-

       

 

896

 

851

5.3%

5.3%

-

 
Intl  

144

 

122

18.1%

15.6%

2.5%

       

 

559

 

508

10.2%

11.1%

-0.9%

 
WW  

387

 

354

9.2%

8.4%

0.8%

       

 

1,456

 

1,359

7.1%

7.5%

-0.4%

 
TRAUMA                                      
US  

487

 

470

3.6%

3.6%

-

       

 

1,949

 

1,882

3.6%

3.6%

-

 
Intl  

255

 

240

5.9%

4.1%

1.8%

       

 

1,030

 

989

4.1%

4.8%

-0.7%

 
WW  

741

 

710

4.4%

3.8%

0.6%

       

 

2,979

 

2,871

3.8%

4.0%

-0.2%

 
SPINE, SPORTS & OTHER                                      
US  

430

 

434

-0.7%

-0.7%

-

       

 

1,684

 

1,645

2.4%

2.4%

-

 
Intl  

311

 

265

17.5%

16.5%

1.0%

       

 

1,263

 

1,198

5.4%

7.3%

-1.9%

 
WW  

742

 

699

6.2%

5.8%

0.4%

       

 

2,947

 

2,843

3.7%

4.5%

-0.8%

 
                                       
                                       
                                       
                                       
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

      REPORTED SALES vs. PRIOR PERIOD ($MM)
 

FOURTH QUARTER

   

TWELVE MONTHS

          % Change                 % Change  
   

2023

 

2022

Reported Operational (1) Currency        

 

2023

 

2022

Reported Operational (1) Currency  
SURGERY                                      
US  

1,047

 

1,000

4.6%

4.6%

-

       

 

4,031

 

3,897

3.4%

3.4%

-

 
Intl  

1,484

 

1,383

7.2%

7.8%

-0.6%

       

 

6,006

 

5,793

3.7%

7.0%

-3.3%

 
WW  

2,530

 

2,384

6.1%

6.4%

-0.3%

       

 

10,037

 

9,690

3.6%

5.5%

-1.9%

 
ADVANCED                                      
US  

468

 

456

2.5%

2.5%

-

       

 

1,833

 

1,784

2.8%

2.8%

-

 
Intl  

698

 

653

7.0%

7.2%

-0.2%

       

 

2,837

 

2,785

1.9%

5.1%

-3.2%

 
WW  

1,167

 

1,109

5.1%

5.2%

-0.1%

       

 

4,671

 

4,569

2.2%

4.2%

-2.0%

 
GENERAL                                      
US  

579

 

544

6.4%

6.4%

-

       

 

2,198

 

2,113

4.0%

4.0%

-

 
Intl  

785

 

731

7.4%

8.3%

-0.9%

       

 

3,168

 

3,008

5.3%

8.7%

-3.4%

 
WW  

1,364

 

1,275

7.0%

7.5%

-0.5%

       

 

5,366

 

5,121

4.8%

6.8%

-2.0%

 
VISION                                      
US  

487

 

456

6.8%

6.8%

-

       

 

2,086

 

1,990

4.8%

4.8%

-

 
Intl  

721

 

689

4.6%

6.4%

-1.8%

       

 

2,986

 

2,859

4.5%

7.9%

-3.4%

 
WW  

1,208

 

1,145

5.5%

6.6%

-1.1%

       

 

5,072

 

4,849

4.6%

6.6%

-2.0%

 
CONTACT LENSES / OTHER                                      
US  

374

 

343

8.9%

8.9%

-

       

 

1,626

 

1,522

6.8%

6.8%

-

 
Intl  

508

 

489

4.2%

7.2%

-3.0%

       

 

2,076

 

2,022

2.7%

7.0%

-4.3%

 
WW  

882

 

831

6.1%

7.9%

-1.8%

       

 

3,702

 

3,543

4.5%

6.9%

-2.4%

 
SURGICAL                                      
US  

114

 

113

0.4%

0.4%

-

       

 

460

 

468

-1.8%

-1.8%

-

 
Intl  

212

 

200

5.6%

4.7%

0.9%

       

 

910

 

837

8.6%

10.0%

-1.4%

 
WW  

326

 

314

3.7%

3.1%

0.6%

       

 

1,370

 

1,306

4.9%

5.8%

-0.9%

 
                                       
TOTAL MEDTECH                                      
US  

3,930

 

3,445

14.1%

14.1%

-

       

 

15,275

 

13,377

14.2%

14.2%

-

 
Intl  

3,743

 

3,331

12.4%

12.8%

-0.4%

       

 

15,125

 

14,050

7.7%

10.6%

-2.9%

 
WW  

$7,673

 

6,776

13.3%

13.4%

-0.1%

       

$

30,400

 

27,427

10.8%

12.4%

-1.6%

 
                                       
                                       

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

(4) Previously referred to as Pharmaceutical

(5) Reported as U.S. sales

 
 
Supplemental Sales Reconciliation (Unaudited)

(Dollars in Millions)
                                             
      FOURTH QUARTER   TWELVE MONTHS  
              Percent Change           Percent Change  
     

2023

 

2022

 

Total

 

Operations

 

Currency

 

2023

 

2022

  Total   Operations   Currency  
                                             
  Innovative Medicine                                          
  U.S.  

$

8,079

 

7,375

 

9.5

%

9.5

 

-

 

$

31,169

 

28,604

 

9.0

%

9.0

 

-

 
  International  

 

5,643

 

5,788

 

(2.5)

 

(3.1)

 

0.6

 

 

23,590

 

23,959

 

(1.5)

 

(0.2)

 

(1.3)

 
  Worldwide  

 

13,722

 

13,163

 

4.2

 

4.0

 

0.2

 

 

54,759

 

52,563

 

4.2

 

4.8

 

(0.6)

 
                                             
  COVID-19 Vaccine                                          
  U.S.  

 

-

 

-

 

-

 

-

 

-

 

 

-

 

120

  *   *  

-

 
  International  

 

44

 

689

 

(93.7)

 

(95.2)

 

1.5

 

 

1,117

 

2,059

 

(45.8)

 

(47.2)

 

1.4

 
  Worldwide  

 

44

 

689

 

(93.7)

 

(95.2)

 

1.5

 

 

1,117

 

2,179

 

(48.8)

 

(50.1)

 

1.3

 
                                             
  Innovative Medicine excluding COVID-19 Vaccine                                          
  U.S.  

 

8,079

 

7,375

 

9.5

 

9.5

 

-

 

 

31,169

 

28,484

 

9.4

 

9.4

 

-

 
  International  

 

5,599

 

5,099

 

9.8

 

9.4

 

0.4

 

 

22,473

 

21,900

 

2.6

 

4.3

 

(1.7)

 
  Worldwide  

 

13,678

 

12,474

 

9.7

 

9.5

 

0.2

 

 

53,642

 

50,384

 

6.5

 

7.2

 

(0.7)

 
                                             
                                             
  Worldwide                                          
  U.S.  

 

12,009

 

10,820

 

11.0

 

11.0

 

-

 

 

46,444

 

41,981

 

10.6

 

10.6

 

-

 
  International  

 

9,386

 

9,119

 

2.9

 

2.7

 

0.2

 

 

38,715

 

38,009

 

1.9

 

3.8

 

(1.9)

 
  Worldwide  

 

21,395

 

19,939

 

7.3

 

7.2

 

0.1

 

 

85,159

 

79,990

 

6.5

 

7.4

 

(0.9)

 
                                             
  COVID-19 Vaccine                                          
  U.S.  

 

-

 

-

 

-

 

-

 

-

 

 

-

 

120

  *   *  

-

 
  International  

 

44

 

689

 

(93.7)

 

(95.2)

 

1.5

 

 

1,117

 

2,059

 

(45.8)

 

(47.2)

 

1.4

 
  Worldwide  

 

44

 

689

 

(93.7)

 

(95.2)

 

1.5

 

 

1,117

 

2,179

 

(48.8)

 

(50.1)

 

1.3

 
                                             
  Worldwide                                          
  U.S.  

 

12,009

 

10,820

 

11.0

 

11.0

 

-

 

 

46,444

 

41,861

 

10.9

 

10.9

 

-

 
  International  

 

9,342

 

8,430

 

10.8

 

10.7

 

0.1

 

 

37,598

 

35,950

 

4.6

 

6.7

 

(2.1)

 
  Worldwide excluding COVID-19 Vaccine  

$

21,351

 

19,250

 

10.9

%

10.9

 

-

 

$

84,042

 

77,811

 

8.0

%

9.0

 

(1.0)

 
                                             
  Note: Columns and rows within tables may not add due to rounding
  * Percentage greater than 100% or not meaningful
   
                                       
Johnson & Johnson and Subsidiaries                                      
Reconciliation of Non-GAAP Financial Measures                                      
                                       
                                       
Q4 QTD - Income Before Tax* and Research & Development Expense by Segment
Dollars in Millions
                                       
        Innovative Medicine   MedTech   Unallocated     Worldwide Total
       

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

 

2023

 

2022

                                       
Reported Income Before Tax by Segment From Continuing Operations   $  

4,238

 

3,223

 

404

 

806

 

184

 

(189)

   

4,826

 

3,840

% to Sales      

30.9%

 

24.5%

 

5.3%

 

11.9%

 

0.9%

 

-0.9%

   

22.6%

 

19.3%

                                       
Intangible asset amortization expense      

747

 

717

 

401

 

260

 

-

 

-

   

1,148

 

977

                                       
In-process research and development impairments      

-

 

173

 

58

 

-

 

-

 

-

   

58

 

173

                                       
Litigation related      

17

 

76

 

149

 

136

 

-

 

50

   

166

 

262

                                       
Loss/(gain) on securities      

(112)

 

23

 

(59)

 

(17)

 

(264)

 

-

   

(435)

 

6

                                       
Restructuring related      

55

 

31

 

84

 

88

 

-

 

-

   

139

 

119

                                       
Acquisition, integration and divestiture related      

175

 

(104)

 

62

 

300

 

-

 

-

   

237

 

196

                                       
Medical Device Regulation      

-

 

-

 

88

 

88

 

-

 

-

   

88

 

88

                                       
COVID-19 Vaccine related costs      

10

 

821

 

-

 

-

 

-

 

-

   

10

 

821

                                       
Adjusted Income Before Tax by Segment From Continuing Operations   $  

5,130

 

4,960

 

1,187

 

1,661

 

(80)

 

(139)

   

6,237

 

6,482

% to Sales      

37.4%

 

37.7%

 

15.5%

 

24.5%

 

-0.4%

 

-0.7%

   

29.2%

 

32.5%

                                       
*Estimated as of 1/23/2024                                      
                                       
As Reported Research and Development Expense   $  

3,357

 

3,070

 

1,123

 

640

           

4,480

 

3,710

% to Sales      

24.5%

 

23.3%

 

14.6%

 

9.4%

           

20.9%

 

18.6%

                                       
                                       
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 YTD - Income Before Tax* and Research & Development Expense by Segment
Dollars in Millions
                                       
        Innovative Medicine   MedTech   Unallocated     Worldwide Total
       

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

 

2023

 

2022

                                       
Reported Income Before Tax by Segment From Continuing Operations   $  

18,246

 

15,647

 

4,669

 

4,447

 

(7,853)

 

(735)

   

15,062

 

19,359

% to Sales      

33.3%

 

29.8%

 

15.4%

 

16.2%

 

-9.2%

 

-0.9%

   

17.7%

 

24.2%

                                       
Intangible asset amortization expense      

2,983

 

2,911

 

1,549

 

1,033

 

-

 

-

   

4,532

 

3,944

                                       
In-process research and development impairments      

206

 

783

 

107

 

-

 

-

 

-

   

313

 

783

                                       
Litigation related      

(108)

 

104

 

190

 

612

 

7,070

 

150

   

7,152

 

866

                                       
Loss/(gain) on securities      

362

 

696

 

(102)

 

(6)

 

381

 

-

   

641

 

690

                                       
Restructuring related      

479

 

63

 

319

 

309

 

-

 

-

   

798

 

372

                                       
Acquisition, integration and divestiture related      

175

 

(104)

 

164

 

300

 

-

 

-

   

339

 

196