Johnson & Johnson Reduces Its Profit by 14% in 2022

Johnson & Johnson shrinks its profits in the last year. The American pharmaceutical company closed 2022 with a profit of 1$7.9 billion, which translates into a decrease of 14.1% compared to the data for 2021, according to the latest results that the multinational published. The main cause that explains these results is based on the sales of its vaccine against Covid-19, which have been significantly reduced.

The American pharmaceutical company has also reported that its profits fell by 25% in the fourth quarter of 2022. The company’s profit fell to $3.52 billion, from the $4.74 billion with which it closed in December 2021, largely due to an “unfavorable currency exchange” and lower sales of its coronavirus vaccine.

In terms of revenue, sales decreased by 4.4% between October and December 2022, to $23.7 billion, about a billion less than in the previous year ($24.8 billion). In the whole year, on the other hand, sales increased by 1.3%, going from $93.77 billion to $94.9 billion.

By business areas, consumer health billed $14.95 billion dollars in 2022, compared to $15.04 billion in 2021. For its part, the pharmaceutical area entered $52.56 billion, 1.7% more. The medical technology department registered sales worth $27.42 billion, 1.4% more than in 2021.

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Johnson & Johnson increased its sales by 1.3% in 2022, up to $95 billion

“The results for the year 2022 reflect the strength and stability of our three business segments, despite the macroeconomic challenges; Looking ahead to 2023, Johnson & Johnson is well positioned to drive growth in the near term, while strategically investing to deliver long-term value,” said Joaquín Duato, CEO of the New Jersey pharmaceutical company.

Sales in the United States rose 2.9% to $12.5 billion in the last quarter of the year, while in the rest of the countries, they decreased by 11.5%, to $11.2 billion. In the whole of 2022, revenues in the United States rose 3%, to $48.6 billion, and decreased slightly, by only 0.6%, to $46.4 billion in the rest of the markets in which the group operates.

According to the company, operational growth in the fourth quarter was 4.6% if the Covid-19 vaccine is excluded from the equation. Also, earnings per share fell 24.9% to $1.33.

“Although we have had inflationary pressures that will persist into 2023, we have been quite diligent and disciplined with respect to prioritizing major investments and managing some of the costs,” Johnson & Johnson CFO Joseph Wolk said.

Likewise, the pharmaceutical company has updated its guidance and expects adjusted earnings per share of between $10.45 and $10.65 per share in 2023, an amount slightly above consensus expectations ($10.33). Regarding sales, Johnson & Johnson expects them to rebound between 4.5% and 5.5% in 2023, to a minimum of $97 billion.

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First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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