Johnson & Johnson Reports 2019 Fourth-Quarter And Full Year Results:

NEW BRUNSWICK, N.J., Jan. 22, 2020 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2019. "We delivered strong underlying sales and earnings growth in 2019, driven by the strength of our Pharmaceutical business, accelerating performance in our Medical Devices business and improved profitability in our Consumer business," said Alex Gorsky, Chairman and Chief Executive Officer. "As we enter into 2020 and this next decade, our strategic investments focused on advancing our pipelines and driving innovation across our entire product portfolio, position us well to deliver long-term sustainable growth and value to our shareholders."

Mr. Gorsky continued, "I am extremely proud of our talented and dedicated colleagues who live Our Credo values each and every day, and are inspired to deliver transformative healthcare solutions that improve the lives of our patients and consumers around the world."

OVERALL FINANCIAL RESULTS:

	FOURTH QUARTER				TWELVE MONTHS
($ in Millions, except EPS)	2019	2018	%  Change		2019	2018	%  Change
Reported Sales	$       20,747	$       20,394	1.7%		$       82,059	$       81,581	0.6%
Net Earnings	4,010	3,042	31.8%		15,119	15,297	(1.2)%
EPS (diluted)	$           1.50	$           1.12	33.9%		$           5.63	$           5.61	0.4%
Non-GAAP*	FOURTH QUARTER				TWELVE MONTHS
($ in Millions, except EPS)	2019	2018	%  Change		2019	2018	%  Change
Operational Sales1,2	n/a	n/a	2.6%		n/a	n/a	2.8%
Adjusted Operational Sales1,3	n/a	n/a	3.4%		n/a	n/a	4.5%
Adjusted Net Earnings1,4	5,027	5,372	(6.4)%		23,310	22,315	4.5%
Adjusted EPS (diluted)1,4	$           1.88	$           1.97	(4.6)%		$           8.68	$           8.18	6.1%

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

 

REGIONAL SALES RESULTS: 

	FOURTH QUARTER		%  Change
($ in Millions)	2019	2018	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$       10,774	$       10,629	1.4%	1.4	-	2.7
International	9,973	9,765	2.1%	4.0	(1.9)	4.1
Worldwide	$       20,747	$       20,394	1.7%	2.6	(0.9)	3.4
	TWELVE MONTHS		%  Change
($ in Millions)	2019	2018	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$       42,097	$       41,884	0.5%	0.5	-	2.3
International	39,962	39,697	0.7%	5.3	(4.6)	6.7
Worldwide	$       82,059	$       81,581	0.6%	2.8	(2.2)	4.5

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

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

 

SEGMENT SALES RESULTS:

	FOURTH QUARTER		%  Change
($ in Millions)	2019	2018	Reported	Operational1,2	Currency	Adjusted  Operational1,3
Consumer	$         3,567	$         3,536	0.9%	2.1	(1.2)	1.4
Pharmaceutical	10,548	10,190	3.5%	4.4	(0.9)	4.5
Medical Devices	6,632	6,668	(0.5)%	0.2	(0.7)	2.7
Worldwide	$       20,747	$       20,394	1.7%	2.6	(0.9)	3.4
	TWELVE MONTHS		%  Change
($ in Millions)	2019	2018	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer	$       13,898	$       13,853	0.3%	3.0	(2.7)	1.4
Pharmaceutical	42,198	40,734	3.6%	5.8	(2.2)	5.8
Medical Devices	25,963	26,994	(3.8)%	(1.7)	(2.1)	3.9
Worldwide	$       82,059	$       81,581	0.6%	2.8	(2.2)	4.5

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

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

FULL-YEAR 2019 SEGMENT COMMENTARY:

Consumer
Consumer worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 1.4%* driven by NEUTROGENA beauty products and over-the-counter products including TYLENOL and MOTRIN analgesics, partially offset by lower sales of baby care products.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 5.8%* 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, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer.  This growth was partially offset by biosimilar and generic competition, primarily declines in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, U.S. ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer and international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* driven by electrophysiology products in the Interventional Solutions business, international energy and endocutter products in the Advanced Surgery business, and ACUVUE contact lenses in the Vision business.

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	DARZALEX (daratumumab) - European Commission Approves Combination with Bortezomib, Thalidomide and Dexamethasone for Patients with Newly Diagnosed Multiple Myeloma Who Are Transplant Eligible1	(press release)
	SPRAVATO (esketamine) Nasal Spray - Approved in Europe for Adults with Treatment-Resistant Major Depressive Disorder	(press release)
	DARZALEX (daratumumab) - European Commission Approves Combination with Lenalidomide and Dexamethasone for Patients with Newly Diagnosed Multiple Myeloma Who Are Transplant Ineligible	(press release)
	STELARA (ustekinumab) - U.S. FDA Approval for the Treatment of Adults with Moderately to Severely Active Ulcerative Colitis	(press release)
Regulatory Submissions	SPRAVATO (esketamine) - Submission of a Type II Variation Application to the European Medicines Agency (EMA) Seeking Expanded Use as a Treatment for Depressive Symptoms in Adults with Major Depressive Disorder Who Have Current Suicidal Ideation with Intent1	(press release)
	IMBRUVICA (ibrutinib) - Supplemental NDA Submitted to U.S. FDA and Type II Variation Submitted to EMA1 Seeking Approval of Combination with Rituximab for Previously Untreated Patients with CLL	(press release) (press release)
	Ebola Vaccine Regimen - Submission of MAA to EMA for Prevention of Ebola Virus Disease (EVD) caused by Zaire Ebolavirus Species.	(press release)
	TREMFYA (guselkumab) - Submission of a Type II Variation Application to the EMA Seeking to Expand Use in the Treatment of Adults with Active Psoriatic Arthritis	(press release)
Other	Completion of Acquisition of Bermekimab, an investigational compound for multiple dermatological indications, from XBiotech Inc. 1	(press release)
	Rilpivirine and Cabotegravir - U.S. FDA issues Complete Response Letter Issued for Investigational Two-Drug Long-Acting HIV Regimen	(press release)
	Completion of Acquisition of TARIS Biomedical with Focus on Transforming the Treatment of Bladder Cancer	(press release)
	Agreement Announced to Acquire Remaining Stake in Verb Surgical Inc.	(press release)
	BCMA CAR-T Therapy Granted U.S. FDA Breakthrough Therapy Designation for the Treatment of Relapsed or Refractory Multiple Myeloma	(press release)
	J&J Vision Introduces TECNIS Toric II 1-Piece IOL as New Monofocal Option for Cataract Patients with Astigmatism	(press release)
	Ethicon Launches VISTASEAL Fibrin Sealant (Human) To Manage Bleeding During Surgery	(press release)
	New Cervical Spine System from DePuy Synthes Advances Treatment Options for Patients with Complex Cervical Spine Disorders	(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.

	January 2020
($ in Billions, except EPS)
Adjusted Operational Sales1,2 Change vs. Prior Year	5.0% - 6.0%
Operational Sales2 Change vs. Prior Year	$85.8 to $86.6 4.5% - 5.5%
Estimated Reported Sales3 Change vs. Prior Year	$85.4 to $86.2 4.0% - 5.0%
Adjusted Operational EPS (Diluted)2,4 Change vs. Prior Year	$9.00 to $9.15 3.7% - 5.4%
Adjusted EPS (Diluted)3,4 Change vs. Prior Year	$8.95 to $9.10 3.1% - 4.8%

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 2020 = $1.11 (Illustrative purposes only)

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

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:00 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: 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 30, 2018, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the company's most recently filed Quarterly Report on Form 10-Q and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

 

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2019		2018		Total		Operations		Currency		2019		2018		Total		Operations		Currency
Sales to customers by
segment of business
Consumer
U.S.	$      1,470		1,479		(0.6)	%	(0.6)		-		$      5,839		5,761		1.4	%	1.4		-
International	2,097		2,057		2.0		4.0		(2.0)		8,059		8,092		(0.4)		4.2		(4.6)
	3,567		3,536		0.9		2.1		(1.2)		13,898		13,853		0.3		3.0		(2.7)
Pharmaceutical
U.S.	6,169		5,936		3.9		3.9		-		23,874		23,286		2.5		2.5		-
International	4,379		4,254		2.9		5.1		(2.2)		18,324		17,448		5.0		10.1		(5.1)
	10,548		10,190		3.5		4.4		(0.9)		42,198		40,734		3.6		5.8		(2.2)
Medical Devices
U.S.	3,135		3,214		(2.4)		(2.4)		-		12,384		12,837		(3.5)		(3.5)		-
International	3,497		3,454		1.3		2.7		(1.4)		13,579		14,157		(4.1)		(0.1)		(4.0)
	6,632		6,668		(0.5)		0.2		(0.7)		25,963		26,994		(3.8)		(1.7)		(2.1)
U.S.	10,774		10,629		1.4		1.4		-		42,097		41,884		0.5		0.5		-
International	9,973		9,765		2.1		4.0		(1.9)		39,962		39,697		0.7		5.3		(4.6)
Worldwide	$    20,747		20,394		1.7	%	2.6		(0.9)		$    82,059		81,581		0.6	%	2.8		(2.2)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

 

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2019		2018		Total		Operations		Currency		2019		2018		Total		Operations		Currency
Sales to customers by
geographic area
U.S.	$  10,774		10,629		1.4	%	1.4		-		$  42,097		41,884		0.5	%	0.5		-
Europe	4,663		4,730		(1.4)		1.0		(2.4)		18,466		18,753		(1.5)		3.8		(5.3)
Western Hemisphere excluding U.S.	1,495		1,456		2.6		9.3		(6.7)		5,941		6,113		(2.8)		5.7		(8.5)
Asia-Pacific, Africa	3,815		3,579		6.6		5.8		0.8		15,555		14,831		4.9		6.9		(2.0)
International	9,973		9,765		2.1		4.0		(1.9)		39,962		39,697		0.7		5.3		(4.6)
Worldwide	$  20,747		20,394		1.7	%	2.6		(0.9)		$  82,059		81,581		0.6	%	2.8		(2.2)
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
	2019				2018				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$ 20,747		100.0		$ 20,394		100.0		1.7
Cost of products sold	7,134		34.4		6,961		34.1		2.5
Gross Profit	13,613		65.6		13,433		65.9		1.3
Selling, marketing and administrative expenses	6,039		29.1		5,991		29.4		0.8
Research and development expense	3,232		15.6		3,224		15.8		0.2
Interest (income) expense, net	4		0.0		54		0.3
Other (income) expense, net	16		0.1		978		4.8
Restructuring	104		0.5		64		0.3
Earnings before provision for taxes on income	4,218		20.3		3,122		15.3		35.1
Provision for taxes on income	208		1.0		80		0.4		160.0
Net earnings	$   4,010		19.3		$   3,042		14.9		31.8
Net earnings per share (Diluted)	$     1.50				$     1.12				33.9
Average shares outstanding (Diluted)	2,669.1				2,724.0
Effective tax rate	4.9	%			2.6	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$   5,628		27.1		$   6,046		29.6		(6.9)
Net earnings	$   5,027		24.2		$   5,372		26.3		(6.4)
Net earnings per share (Diluted)	$     1.88				$     1.97				(4.6)
Effective tax rate	10.7	%			11.1	%
(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
	2019				2018				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$ 82,059		100.0		$ 81,581		100.0		0.6
Cost of products sold	27,556		33.6		27,091		33.2		1.7
Gross Profit	54,503		66.4		54,490		66.8		0.0
Selling, marketing and administrative expenses	22,178		27.0		22,540		27.6		(1.6)
Research and development expense	11,355		13.8		10,775		13.2		5.4
In-process research and development	890		1.1		1,126		1.4
Interest (income) expense, net	(39)		0.0		394		0.5
Other (income) expense, net	2,525		3.1		1,405		1.7
Restructuring	266		0.3		251		0.3
Earnings before provision for taxes on income	17,328		21.1		17,999		22.1		(3.7)
Provision for taxes on income	2,209		2.7		2,702		3.3		(18.2)
Net earnings	$ 15,119		18.4		$ 15,297		18.8		(1.2)
Net earnings per share (Diluted)	$     5.63				$     5.61				0.4
Average shares outstanding (Diluted)	2,684.3				2,728.7
Effective tax rate	12.7	%			15.0	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$ 28,225		34.4		$ 26,698		32.7		5.7
Net earnings	$ 23,310		28.4		$ 22,315		27.4		4.5
Net earnings per share (Diluted)	$     8.68				$     8.18				6.1
Effective tax rate	17.4	%			16.4	%
(1) See Reconciliation of Non-GAAP Financial Measures.

 

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Fourth Quarter				% Incr. /			Twelve Months				% Incr. /
(Dollars in Millions Except Per Share Data)		2019		2018		(Decr.)			2019		2018		(Decr.)
Earnings before provision for taxes on income - as reported		$        4,218		3,122		35.1	%		$    17,328		17,999		(3.7)	%
Litigation expense, net		264		1,288					5,096		1,991
Intangible asset amortization expense		1,142		1,073					4,528		4,357
In-process research and development		-		-					890		1,126
Restructuring/Other (1)		251		227					611		700
Actelion acquisition related cost		62		43					185		243
Auris Health acquisition related cost		16		-					72		-
AMO acquisition related cost		12		27					62		109
Unrealized loss/(gain) on securities		(350)		182					(567)		179
Contingent liability reversal		-		-					-		(184)
Tax legislation and related impacts		-		72					-		72
Other		13		12					20		106
Earnings before provision for taxes on income - as adjusted		$        5,628		6,046		(6.9)	%		$    28,225		26,698		5.7	%
Net Earnings - as reported		$        4,010		3,042		31.8	%		$    15,119		15,297		(1.2)	%
Litigation expense, net		251		1,113					4,015		1,722
Intangible asset amortization expense		1,008		957					3,844		3,888
In-process research and development		-		-					703		859
Restructuring/Other		214		190					511		585
Actelion acquisition related cost		58		39					172		232
Auris Health acquisition related cost		12		-					56		-
AMO acquisition related cost		12		21					52		89
Unrealized loss/(gain) on securities		(277)		143					(448)		141
Contingent liability reversal		-		-					-		(184)
Tax legislation and related impacts (2)		(184)		(137)					(575)		(390)
Other		(77)		4					(139)		76
Net Earnings - as adjusted		$        5,027		5,372		(6.4)	%		$    23,310		22,315		4.5	%
Diluted Net Earnings per share - as reported		$          1.50		1.12		33.9	%		$        5.63		5.61		0.4	%
Litigation expense, net		0.10		0.41					1.50		0.63
Intangible asset amortization expense		0.38		0.35					1.43		1.42
In-process research and development		-		-					0.26		0.32
Restructuring/Other		0.08		0.07					0.19		0.21
Actelion acquisition related cost		0.02		0.01					0.06		0.09
Auris Health acquisition related cost		-		-					0.02		-
AMO acquisition related cost		-		0.01					0.02		0.03
Unrealized loss/(gain) on securities		(0.10)		0.05					(0.17)		0.05
Contingent liability reversal		-		-					-		(0.07)
Tax legislation and related impacts		(0.07)		(0.05)					(0.21)		(0.14)
Other		(0.03)		-					(0.05)		0.03
Diluted Net Earnings per share - as adjusted		$          1.88		1.97		(4.6)	%		$        8.68		8.18		6.1	%
Operational Diluted Net Earnings per share - as adjusted at 2017 foreign currency exchange rates				2.02							8.06
Impact of currency at 2018 foreign currency exchange rates		0.03		(0.05)					0.22		0.12
Operational Diluted Net Earnings per share - as adjusted at 2018 foreign currency exchange rates		$          1.91		1.97		(3.0)	%		$        8.90		8.18		8.8	%
(1) Includes $70M recorded in cost of products sold and $77M recorded in other (income) expense for the fourth quarter 2019, and $32M recorded in cost of products sold
and $131M recorded in other (income) expense for the fourth quarter 2018.
Includes $151M recorded in cost of products sold and $194M recorded in other (income) expense for twelve months YTD 2019, and $105M recorded in cost of products sold
and $344M recorded in other (income) expense for twelve months YTD 2018.
(2) Includes foreign currency translation

 

 

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
FOURTH QUARTER 2019 ACTUAL vs. 2018 ACTUAL
Segments
		Consumer		Pharmaceutical		Medical Devices		Total
WW As Reported		0.9%		3.5%		(0.5)%		1.7%
U.S.		(0.6)%		3.9%		(2.4)%		1.4%
International		2.0%		2.9%		1.3%		2.1%
WW Currency		(1.2)		(0.9)		(0.7)		(0.9)
U.S.		-		-		-		-
International		(2.0)		(2.2)		(1.4)		(1.9)
WW Operational		2.1%		4.4%		0.2%		2.6%
U.S.		(0.6)%		3.9%		(2.4)%		1.4%
International		4.0%		5.1%		2.7%		4.0%
Beauty
RoC		0.6						0.1
U.S.		1.4						0.2
International		0.0						0.0
Beauty
Dr. Ci Labo - Japan		(1.7)						(0.3)
U.S.		0.0						0.0
International		(2.9)						(0.6)
Specialty Surgery
Advanced Sterilization Products						2.4		0.8
U.S.						3.0		0.9
International						2.0		0.7
Baby Care
Baby Center		0.3						0.1
U.S.		0.8						0.1
International		0.0						0.0
All Other Acquisitions and Divestitures		0.0		0.1		0.1		0.1
U.S.		0.0		0.1		0.0		0.1
International		0.1		0.0		0.1		0.1
WW Adjusted Operational		1.4%		4.5%		2.7%		3.4%
U.S.		1.6%		4.1%		0.6%		2.7%
International		1.3%		5.1%		4.7%		4.1%
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 2019 ACTUAL vs. 2018 ACTUAL
Segments
		Consumer		Pharmaceutical		Medical Devices		Total
WW As Reported		0.3%		3.6%		(3.8)%		0.6%
U.S.		1.4%		2.5%		(3.5)%		0.5%
International		(0.4)%		5.0%		(4.1)%		0.7%
WW Currency		(2.7)		(2.2)		(2.1)		(2.2)
U.S.		-		-		-		-
International		(4.6)		(5.1)		(4.0)		(4.6)
WW Operational		3.0%		5.8%		(1.7)%		2.8%
U.S.		1.4%		2.5%		(3.5)%		0.5%
International		4.2%		10.1%		(0.1)%		5.3%
Beauty
Nizoral		0.2						0.0
U.S.		0.1						0.0
International		0.3						0.1
OTC
Zarbees		(0.4)						(0.1)
U.S.		(1.1)						(0.1)
International		0.0						0.0
Diabetes Care
LifeScan						3.8		1.3
U.S.						2.9		0.9
International						4.6		1.7
Beauty
RoC		0.7						0.1
U.S.		1.3						0.2
International		0.2						0.0
Beauty
Dr. Ci Labo - Japan		(2.3)						(0.4)
U.S.		0.0						0.0
International		(3.9)						(0.8)
Specialty Surgery
Advanced Sterilization Products						1.6		0.6
U.S.						2.2		0.7
International						1.0		0.4
Baby Care
Baby Center		0.1						0.0
U.S.		0.3						0.0
International		0.0						0.0
All Other Acquisitions and Divestitures		0.1		0.0		0.1		0.1
U.S.		0.0		0.1		0.1		0.1
International		0.1		0.0		0.1		0.1
WW Adjusted Operational		1.4%		5.8%		3.9%		4.5%
U.S.		2.1%		2.7%		1.8%		2.3%
International		1.0%		10.1%		5.7%		6.7%
Note:Percentages are based on actual, non-rounded figures and may not sum

 

 

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2019		2018	Reported	Operational (1)	Currency			2019		2018	Reported	Operational (1)	Currency
CONSUMER SEGMENT (2)
BABY CARE
US		$            85		116	-26.7%	-26.7%	-			$          362		422	-14.2%	-14.2%	-
Intl		336		357	-5.9%	-3.7%	-2.2%			1,313		1,436	-8.6%	-3.7%	-4.9%
WW		421		473	-11.0%	-9.3%	-1.7%			1,675		1,858	-9.9%	-6.1%	-3.8%
BEAUTY
US		582		612	-4.9%	-4.9%	-			2,392		2,403	-0.4%	-0.4%	-
Intl		568		499	13.8%	15.6%	-1.8%			2,201		1,979	11.2%	15.3%	-4.1%
WW		1,150		1,111	3.5%	4.3%	-0.8%			4,593		4,382	4.8%	6.7%	-1.9%
ORAL CARE
US		159		165	-3.6%	-3.6%	-			621		637	-2.5%	-2.5%	-
Intl		233		234	0.2%	2.2%	-2.0%			906		918	-1.2%	3.3%	-4.5%
WW		393		399	-1.4%	-0.2%	-1.2%			1,528		1,555	-1.7%	0.9%	-2.6%
OTC
US		542		491	10.3%	10.3%	-			2,010		1,850	8.6%	8.6%	-
Intl		653		657	-0.6%	0.8%	-1.4%			2,434		2,484	-2.0%	2.2%	-4.2%
WW		1,195		1,148	4.1%	4.9%	-0.8%			4,444		4,334	2.5%	4.9%	-2.4%
WOMEN'S HEALTH
US		3		3	-11.8%	-11.8%	-			12		13	-5.5%	-5.5%	-
Intl		250		254	-1.5%	3.1%	-4.6%			974		1,036	-6.0%	1.1%	-7.1%
WW		253		257	-1.6%	2.9%	-4.5%			986		1,049	-6.0%	1.0%	-7.0%
WOUND CARE / OTHER
US		98		92	7.5%	7.5%	-			441		436	1.2%	1.2%	-
Intl		57		56	-0.4%	0.6%	-1.0%			230		239	-3.9%	-0.7%	-3.2%
WW		155		148	4.5%	4.8%	-0.3%			671		675	-0.6%	0.5%	-1.1%
TOTAL CONSUMER
US		1,470		1,479	-0.6%	-0.6%	-			5,839		5,761	1.4%	1.4%	-
Intl		2,097		2,057	2.0%	4.0%	-2.0%			8,059		8,092	-0.4%	4.2%	-4.6%
WW		$       3,567		3,536	0.9%	2.1%	-1.2%			$     13,898		13,853	0.3%	3.0%	-2.7%
See footnotes at end of schedule

 

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2019		2018	Reported	Operational (1)	Currency			2019		2018	Reported	Operational (1)	Currency
PHARMACEUTICAL SEGMENT (2)
IMMUNOLOGY
US		$       2,517		2,356	6.8%	6.8%	-			$       9,641		9,073	6.3%	6.3%	-
Intl		1,005		986	1.9%	4.3%	-2.4%			4,309		4,047	6.5%	11.6%	-5.1%
WW		3,522		3,342	5.4%	6.1%	-0.7%			13,950		13,120	6.3%	7.9%	-1.6%
REMICADE
US		755		843	-10.4%	-10.4%	-			3,079		3,664	-16.0%	-16.0%	-
US Exports (3)		68		90	-25.0%	-25.0%	-			294		436	-32.7%	-32.7%	-
Intl		212		305	-30.4%	-28.9%	-1.5%			1,007		1,226	-17.8%	-13.7%	-4.1%
WW		1,035		1,238	-16.4%	-16.0%	-0.4%			4,380		5,326	-17.8%	-16.8%	-1.0%
SIMPONI / SIMPONI ARIA
US		302		272	10.7%	10.7%	-			1,159		1,051	10.2%	10.2%	-
Intl		213		210	1.4%	3.7%	-2.3%			1,029		1,033	-0.4%	4.4%	-4.8%
WW		515		482	6.6%	7.6%	-1.0%			2,188		2,084	5.0%	7.3%	-2.3%
STELARA
US		1,194		1,009	18.4%	18.4%	-			4,346		3,469	25.3%	25.3%	-
Intl		506		435	16.3%	19.1%	-2.8%			2,015		1,687	19.4%	25.1%	-5.7%
WW		1,700		1,444	17.7%	18.6%	-0.9%			6,361		5,156	23.4%	25.2%	-1.8%
TREMFYA
US		199		142	39.7%	39.7%	-			764		453	68.5%	68.5%	-
Intl		71		33	*	*	*			248		91	*	*	*
WW		270		175	53.9%	55.1%	-1.2%			1,012		544	85.9%	87.7%	-1.8%
OTHER IMMUNOLOGY
US		-		-	-	-	-			-		-	-	-	-
Intl		2		3	-22.4%	-24.0%	1.6%			10		10	4.5%	4.7%	-0.2%
WW		2		3	-22.4%	-24.0%	1.6%			10		10	4.5%	4.7%	-0.2%
INFECTIOUS DISEASES
US		435		372	17.1%	17.1%	-			1,597		1,378	15.9%	15.9%	-
Intl		430		430	0.2%	3.0%	-2.8%			1,815		1,926	-5.7%	-0.2%	-5.5%
WW		866		802	8.0%	9.6%	-1.6%			3,413		3,304	3.3%	6.5%	-3.2%
EDURANT / rilpivirine
US		14		16	-12.3%	-12.3%	-			50		58	-13.7%	-13.7%	-
Intl		209		177	17.7%	20.9%	-3.2%			812		758	7.1%	12.7%	-5.6%
WW		222		193	15.2%	18.2%	-3.0%			861		816	5.6%	10.8%	-5.2%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		390		322	21.0%	21.0%	-			1,422		1,169	21.6%	21.6%	-
Intl		155		173	-10.7%	-7.8%	-2.9%			689		786	-12.3%	-6.8%	-5.5%
WW		544		495	9.9%	10.9%	-1.0%			2,110		1,955	8.0%	10.2%	-2.2%
OTHER INFECTIOUS DISEASES
US		32		34	-5.8%	-5.8%	-			126		151	-16.5%	-16.5%	-
Intl		67		80	-15.4%	-13.3%	-2.1%			315		382	-17.6%	-12.3%	-5.3%
WW		99		114	-12.5%	-11.0%	-1.5%			441		533	-17.3%	-13.5%	-3.8%
See footnotes at end of schedule

 

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2019		2018	Reported	Operational (1)	Currency			2019		2018	Reported	Operational (1)	Currency
NEUROSCIENCE
US		747		660	13.2%	13.2%	-			2,919		2,574	13.4%	13.4%	-
Intl		819		840	-2.5%	-1.2%	-1.3%			3,409		3,503	-2.7%	1.5%	-4.2%
WW		1,566		1,500	4.4%	5.2%	-0.8%			6,328		6,077	4.1%	6.6%	-2.5%
CONCERTA / methlyphenidate
US		37		38	-4.4%	-4.4%	-			233		229	1.7%	1.7%	-
Intl		115		112	2.4%	3.0%	-0.6%			463		434	6.6%	10.3%	-3.7%
WW		152		150	0.7%	1.1%	-0.4%			696		663	4.9%	7.3%	-2.4%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		564		485	16.2%	16.2%	-			2,107		1,791	17.6%	17.6%	-
Intl		308		278	10.7%	13.2%	-2.5%			1,224		1,137	7.7%	13.0%	-5.3%
WW		871		763	14.2%	15.1%	-0.9%			3,330		2,928	13.7%	15.8%	-2.1%
RISPERDAL CONSTA
US		77		77	0.3%	0.3%	-			314		315	-0.3%	-0.3%	-
Intl		82		101	-18.9%	-17.0%	-1.9%			374		422	-11.4%	-6.5%	-4.9%
WW		160		178	-10.6%	-9.5%	-1.1%			688		737	-6.7%	-3.9%	-2.8%
OTHER NEUROSCIENCE
US		70		60	16.7%	16.7%	-			266		239	11.4%	11.4%	-
Intl		314		349	-9.9%	-9.3%	-0.6%			1,349		1,510	-10.7%	-7.4%	-3.3%
WW		383		409	-6.1%	-5.5%	-0.6%			1,614		1,749	-7.7%	-4.9%	-2.8%
ONCOLOGY
US		1,153		1,063	8.5%	8.5%	-			4,299		4,331	-0.7%	-0.7%	-
Intl		1,563		1,426	9.6%	12.2%	-2.6%			6,393		5,513	16.0%	21.8%	-5.8%
WW		2,716		2,489	9.1%	10.6%	-1.5%			10,692		9,844	8.6%	11.9%	-3.3%
DARZALEX
US		444		323	37.8%	37.8%	-			1,567		1,203	30.3%	30.3%	-
Intl		385		261	47.5%	52.8%	-5.3%			1,430		822	73.9%	84.1%	-10.2%
WW		830		584	42.1%	44.5%	-2.4%			2,998		2,025	48.0%	52.2%	-4.2%
IMBRUVICA
US		392		318	22.8%	22.8%	-			1,555		1,129	37.7%	37.7%	-
Intl		483		385	25.9%	29.7%	-3.8%			1,856		1,486	24.9%	32.1%	-7.2%
WW		875		703	24.5%	26.6%	-2.1%			3,411		2,615	30.4%	34.5%	-4.1%
VELCADE
US		-		-	-	-	-			-		-	-	-	-
Intl		115		252	-54.6%	-55.2%	0.6%			751		1,116	-32.7%	-30.1%	-2.6%
WW		115		252	-54.6%	-55.2%	0.6%			751		1,116	-32.7%	-30.1%	-2.6%
ZYTIGA / abiraterone acetate
US		194		351	-44.8%	-44.8%	-			810		1,771	-54.3%	-54.3%	-
Intl		483		435	11.2%	12.9%	-1.7%			1,985		1,727	15.0%	19.8%	-4.8%
WW		677		786	-13.8%	-12.9%	-0.9%			2,795		3,498	-20.1%	-17.7%	-2.4%
OTHER ONCOLOGY
US		122		71	75.1%	75.1%	-			367		228	61.0%	61.0%	-
Intl		97		93	3.0%	5.9%	-2.9%			371		362	2.4%	8.1%	-5.7%
WW		220		164	33.7%	35.4%	-1.7%			739		590	25.0%	28.6%	-3.6%
PULMONARY HYPERTENSION
US		388		436	-11.1%	-11.1%	-			1,684		1,651	2.0%	2.0%	-
Intl		235		231	1.6%	3.1%	-1.5%			939		922	1.9%	6.3%	-4.4%
WW		623		667	-6.7%	-6.2%	-0.5%			2,623		2,573	1.9%	3.5%	-1.6%
OPSUMIT
US		185		189	-2.4%	-2.4%	-			766		700	9.4%	9.4%	-
Intl		143		134	5.8%	7.5%	-1.7%			562		515	9.0%	14.1%	-5.1%
WW		326		323	1.0%	1.7%	-0.7%			1,327		1,215	9.2%	11.4%	-2.2%
TRACLEER / bosentan
US		10		60	-83.3%	-83.3%	-			131		268	-51.1%	-51.1%	-
Intl		46		64	-27.6%	-28.8%	1.2%			210		278	-24.3%	-22.6%	-1.7%
WW		56		124	-54.8%	-55.4%	0.6%			341		546	-37.5%	-36.6%	-0.9%
UPTRAVI
US		178		165	7.4%	7.4%	-			714		598	19.3%	19.3%	-
Intl		30		16	92.5%	99.5%	-7.0%			105		65	62.4%	70.7%	-8.3%
WW		208		181	14.8%	15.4%	-0.6%			819		663	23.5%	24.3%	-0.8%
OTHER
US		16		22	-27.7%	-27.7%	-			74		85	-13.7%	-13.7%	-
Intl		16		17	-5.9%	-2.4%	-3.5%			62		64	-3.7%	3.3%	-7.0%
WW		32		39	-18.1%	-16.5%	-1.6%			135		149	-9.4%	-6.4%	-3.0%
CARDIOVASCULAR / METABOLISM / OTHER
US		930		1,049	-11.4%	-11.4%	-			3,734		4,279	-12.7%	-12.7%	-
Intl		327		341	-4.4%	-3.5%	-0.9%			1,458		1,537	-5.2%	-1.3%	-3.9%
WW		1,256		1,390	-9.7%	-9.5%	-0.2%			5,192		5,816	-10.7%	-9.7%	-1.0%
XARELTO
US		609		608	0.4%	0.4%	-			2,313		2,477	-6.6%	-6.6%	-
Intl		-		-	-	-	-			-		-	-	-	-
WW		609		608	0.4%	0.4%	-			2,313		2,477	-6.6%	-6.6%	-
INVOKANA / INVOKAMET
US		125		188	-33.8%	-33.8%	-			536		711	-24.6%	-24.6%	-
Intl		52		40	33.7%	36.0%	-2.3%			199		170	17.3%	22.1%	-4.8%
WW		177		228	-22.2%	-21.8%	-0.4%			735		881	-16.5%	-15.6%	-0.9%
PROCRIT / EPREX
US		118		151	-21.6%	-21.6%	-			505		674	-25.1%	-25.1%	-
Intl		65		70	-7.1%	-7.0%	-0.1%			285		314	-9.2%	-6.5%	-2.7%
WW		183		221	-17.0%	-16.9%	-0.1%			790		988	-20.0%	-19.2%	-0.8%
OTHER
US		78		102	-25.0%	-25.0%	-			380		417	-9.1%	-9.1%	-
Intl		209		231	-10.0%	-9.1%	-0.9%			974		1,053	-7.6%	-3.5%	-4.1%
WW		286		333	-14.6%	-14.0%	-0.6%			1,353		1,470	-8.0%	-5.1%	-2.9%
TOTAL PHARMACEUTICAL
US		6,169		5,936	3.9%	3.9%	-			23,874		23,286	2.5%	2.5%	-
Intl		4,379		4,254	2.9%	5.1%	-2.2%			18,324		17,448	5.0%	10.1%	-5.1%
WW		$     10,548		10,190	3.5%	4.4%	-0.9%			$     42,198		40,734	3.6%	5.8%	-2.2%
See footnotes at end of schedule

 

 

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2019		2018	Reported	Operational (1)	Currency			2019		2018	Reported	Operational (1)	Currency
MEDICAL DEVICES SEGMENT (2)(4)
DIABETES CARE(4)
US		$               -		-	-	-	-			$               -		371	*	*	-
Intl		-		-	-	-	-			-		638	*	*	*
WW		-		-	-	-	-			-		1,009	*	*	*
INTERVENTIONAL SOLUTIONS
US		377		336	12.2%	12.2%	-			1,443		1,283	12.5%	12.5%	-
Intl		398		350	13.4%	14.3%	-0.9%			1,554		1,363	14.0%	17.8%	-3.8%
WW		774		686	12.8%	13.3%	-0.5%			2,997		2,646	13.3%	15.2%	-1.9%
ORTHOPAEDICS
US		1,369		1,358	0.9%	0.9%	-			5,319		5,281	0.7%	0.7%	-
Intl		904		904	-0.1%	1.7%	-1.8%			3,520		3,604	-2.3%	1.9%	-4.2%
WW		2,273		2,262	0.5%	1.2%	-0.7%			8,839		8,885	-0.5%	1.2%	-1.7%
HIPS
US		230		220	4.9%	4.9%	-			863		841	2.6%	2.6%	-
Intl		147		145	1.2%	3.0%	-1.8%			575		577	-0.3%	4.2%	-4.5%
WW		377		365	3.4%	4.2%	-0.8%			1,438		1,418	1.4%	3.3%	-1.9%
KNEES
US		239		239	0.2%	0.2%	-			889		911	-2.4%	-2.4%	-
Intl		156		153	1.5%	3.2%	-1.7%			591		591	0.0%	4.1%	-4.1%
WW		395		392	0.7%	1.4%	-0.7%			1,480		1,502	-1.4%	0.2%	-1.6%
TRAUMA
US		413		403	2.3%	2.3%	-			1,652		1,599	3.3%	3.3%	-
Intl		273		271	0.8%	2.6%	-1.8%			1,068		1,100	-2.9%	1.4%	-4.3%
WW		686		674	1.7%	2.5%	-0.8%			2,720		2,699	0.8%	2.5%	-1.7%
SPINE & OTHER
US		488		496	-1.6%	-1.6%	-			1,915		1,930	-0.8%	-0.8%	-
Intl		329		335	-2.1%	-0.4%	-1.7%			1,286		1,336	-3.8%	0.4%	-4.2%
WW		817		831	-1.8%	-1.1%	-0.7%			3,201		3,266	-2.0%	-0.3%	-1.7%
SURGERY
US		961		1,094	-12.2%	-12.2%	-			3,828		4,125	-7.2%	-7.2%	-
Intl		1,481		1,493	-0.8%	1.2%	-2.0%			5,673		5,776	-1.8%	2.7%	-4.5%
WW		2,442		2,587	-5.6%	-4.4%	-1.2%			9,501		9,901	-4.0%	-1.4%	-2.6%
ADVANCED
US		428		441	-3.0%	-3.0%	-			1,637		1,657	-1.2%	-1.2%	-
Intl		647		614	5.5%	7.6%	-2.1%			2,458		2,345	4.8%	9.4%	-4.6%
WW		1,076		1,055	2.0%	3.2%	-1.2%			4,095		4,002	2.3%	5.0%	-2.7%
GENERAL
US		451		469	-3.9%	-3.9%	-			1,762		1,751	0.6%	0.6%	-
Intl		720		712	1.2%	3.3%	-2.1%			2,718		2,806	-3.1%	1.3%	-4.4%
WW		1,171		1,181	-0.8%	0.4%	-1.2%			4,480		4,557	-1.7%	1.0%	-2.7%
SPECIALTY
US		83		184	-55.3%	-55.3%	-			430		717	-40.1%	-40.1%	-
Intl		114		167	-32.3%	-30.7%	-1.6%			497		625	-20.5%	-16.4%	-4.1%
WW		195		351	-44.4%	-43.6%	-0.8%			926		1,342	-31.0%	-29.0%	-2.0%
VISION
US		428		426	0.3%	0.3%	-			1,794		1,777	0.9%	0.9%	-
Intl		713		707	1.0%	1.2%	-0.2%			2,830		2,776	2.0%	4.9%	-2.9%
WW		1,141		1,133	0.7%	0.9%	-0.2%			4,624		4,553	1.6%	3.3%	-1.7%
CONTACT LENSES / OTHER
US		311		289	7.7%	7.7%	-			1,304		1,237	5.4%	5.4%	-
Intl		522		527	-0.8%	-0.9%	0.1%			2,088		2,065	1.1%	4.0%	-2.9%
WW		833		816	2.2%	2.1%	0.1%			3,392		3,302	2.7%	4.6%	-1.9%
SURGICAL
US		117		137	-15.2%	-15.2%	-			490		540	-9.4%	-9.4%	-
Intl		191		180	6.4%	7.6%	-1.2%			742		711	4.4%	7.3%	-2.9%
WW		309		317	-3.0%	-2.3%	-0.7%			1,232		1,251	-1.6%	0.1%	-1.7%
TOTAL MEDICAL DEVICES
US		3,135		3,214	-2.4%	-2.4%	-			12,384		12,837	-3.5%	-3.5%	-
Intl		3,497		3,454	1.3%	2.7%	-1.4%			13,579		14,157	-4.1%	-0.1%	-4.0%
WW		$       6,632		6,668	-0.5%	0.2%	-0.7%			$     25,963		26,994	-3.8%	-1.7%	-2.1%
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) Reported as U.S. sales
(4) Reflects LifeScan divestiture October 2, 2018

 

 

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