Johnson & Johnson falls short of expected revenue in last quarter of 2021

26 Jan 2022

Image: © MichaelVi/Stock.adobe.com

The healthcare giant reached $93.77bn in sales in 2021 and reported a solid 2022 outlook.

Johnson & Johnson reported a steady finish to its 2021 fiscal year, with fourth-quarter earnings that were slightly higher than analyst expectations but revenue that fell short.

The healthcare company reported sales of $24.8bn in the last quarter of 2021, a 10.4pc increase compared to the same quarter in the previous year. This was just short of analysts’ expectations of $25.29bn, based on average estimates compiled by Refinitiv and reported by CNBC.

Future Human

Johnson & Johnson’s fourth-quarter profit rose to $4.74bn, almost three times more than the $1.74bn it earned during the same quarter in 2020.

For the full 2021 fiscal year, Johnson & Johnson reached $93.77bn in sales, up from the $82.58bn the year before. The company reported operational sales growth of 12.2pc and adjusted operational sales growth of 12.8pc.

“Our 2021 performance reflects continued strength across all segments of our business,” said new Johnson & Johnson chief exec Joaquin Duato. “Guided by our credo, I am honoured to assume the role of CEO, leading our global teams in continuing our work to deliver life-changing solutions to consumers, patients and healthcare providers.

“Given our strong results, financial profile and innovative pipeline, we are well positioned for success in 2022 and beyond.”

In the company’s pharmaceutical segment, adjusted operational sales grew by 13.6pc in 2021, boosted by sales from the Janssen Covid-19 vaccine. Medical devices adjusted sales increased by 16.8pc, driven by the market recovery from the pandemic and the deferral of medical procedures impacting company areas such as surgery, vision and orthopaedics.

There was slower growth in the company’s consumer health division, with worldwide adjusted operations sales up 3.8pc, driven by over-the-counter products and the Neutrogena and Aveeno brands.

Johnson & Johnson expects a steady increase for the year ahead, with a 7pc to 8.5pc increase in operational sales. It expects Covid-19 vaccine sales to be between $3bn and $3.5bn for the year.

Last November, the healthcare giant revealed plans to split itself into two public companies within the next two years. Johnson & Johnson plans to spin out its consumer health business and focus on its pharmaceutical and medical device units.

Johnson & Johnson has more than 136,000 employees worldwide. This includes a workforce of more than 5,000 in Ireland, with sites across the country for its Janssen, DePuy Synthes, Cerenvous and Johnson & Johnson Vision Care businesses.

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Leigh Mc Gowran is a journalist with Silicon Republic

editorial@siliconrepublic.com