On January 23, 2024, Johnson & Johnson (JNJ, Financial) released its 8-K filing, detailing the financial outcomes for the fourth quarter and the full year of 2023. The world's largest and most diverse healthcare firm, with a focus on pharmaceuticals, medical devices and diagnostics, and consumer health, has reported robust growth in both quarterly and annual sales, alongside a notable increase in adjusted earnings per share.
Comprehensive Financial Performance
Johnson & Johnson's fourth-quarter results showed a reported sales growth of 7.3% reaching $21.4 billion, with operational growth closely trailing at 7.2%. The adjusted operational growth stood at 5.7%, with the exclusion of the COVID-19 Vaccine contributing to a 10.9% operational growth. The full-year figures were similarly positive, with a reported sales growth of 6.5% to $85.2 billion and operational growth of 7.4%. Adjusted operational growth for the year was 5.9%, with the exclusion of the COVID-19 Vaccine sales leading to a 9.0% operational growth.
The earnings per share (EPS) for the fourth quarter increased by a remarkable 39.3% to $1.70, while the adjusted EPS grew by 11.7% to $2.29. For the full year, the EPS saw a decrease of 15.3% to $5.20, attributed to a special one-time charge in the first quarter. However, the adjusted EPS for the year increased by 11.1% to $9.92. The company's reconfirmation of its 2024 guidance, with operational sales growth of 5.0% - 6.0% and adjusted operational EPS of $10.55 - $10.75, reflects a mid-point growth of 7.4%.
Segment and Regional Sales Highlights
The Innovative Medicine segment, excluding COVID-19 Vaccine sales, experienced a worldwide operational sales growth of 7.2%. This growth was propelled by strong performances in Oncology, Immunology, and Neuroscience, with key contributors including DARZALEX, ERLEADA, TECVAYLI, CARVYKTI, STELARA, TREMFYA, and SPRAVATO. The MedTech segment also reported robust worldwide operational sales growth of 12.4%, with adjusted operational sales growing by 7.8%, driven by products in Interventional Solutions, Vision, General Surgery, and Advanced Surgery.
Johnson & Johnson's Chairman and Chief Executive Officer, Joaquin Duato, commented on the results:
"Johnson & Johnson’s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients. We have entered 2024 from a position of strength, and I am confident in our ability to lead the next wave of health innovation."
Strategic Moves and Future Outlook
Throughout the year, Johnson & Johnson made significant regulatory advancements, including the full approval of BALVERSA for bladder cancer treatment and the regulatory approval of the VARIPULSE Pulsed Field Ablation platform in Japan. The company also continued to innovate with new product launches, such as the ETHIZIA Hemostatic Sealing Patch, and strategic acquisitions, including Ambrx, to advance next-generation antibody drug conjugates for cancer treatment.
As Johnson & Johnson prepares for the divestiture of its consumer group under the new name Kenvue in 2023, the company's focus on Innovative Medicine and MedTech is expected to drive future growth and reinforce its position as a leader in healthcare innovation. Investors and stakeholders are encouraged to review the detailed financial schedules and listen to the webcast for a deeper understanding of the company's performance and strategic direction.
For more detailed information on Johnson & Johnson's financial performance, including reconciliations of non-GAAP financial measures, please visit the Investor Relations section of the company's website at quarterly results.
Explore the complete 8-K earnings release (here) from Johnson & Johnson for further details.
