Johnson & Johnson reported $68 million Net Loss in Q1

Johnson & Johnson reported sales growth of 5.6% to $24.7 Billion in 2023 Q1. The company posted a net loss of $68 million, down 101.3%.

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Johnson & Johnson announced its first-quarter performance. The company reported sales growth of 5.6% to $24.7 Billion with operational growth of 9.0%, which was better than the market’s expectation of $23.666 billion.

Johnson & Johnson posted a net loss of $68 million, down 101.3% due to a special one-time charge related to talc cancer claims. The company reported a net profit of $5.149 billion in the same period last year.

Johnson & Johnson is still facing a long-running legal battle over its talcum-based baby powder product. Earlier this month, the company proposed to pay $8.9 billion over the next 25 years to resolve all cancer lawsuits tied to its talc-based powders. The company has secured commitments from over 60,000 current Talc cancer claimants. The company has said it will stop selling baby powder made with talc globally in 2023.

Johnson & Johnson said the company is set to increase 2023 full-year guidance midpoints for adjusted operational sales and adjusted operational EPS.

In terms of business segments, consumer health business ales increased by 7.4% to $3.852 billion, largely driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, upper respiratory products, IMODIUM in digestive health products and international smoking cessation products.

Pharmaceutical business ales achieved $13.413 billion, with and increase of 4.7%. Johnson & Johnson pointed out that the growth was driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA(apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, etc.

While the Medtech business saw 7.3% growth to $7.481 billion, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, wound closure products in General Surgery, and knees in Orthopaedics.

“Johnson & Johnson reported another quarter of strong results across our business in the first quarter of 2023," says Joe Wolk, Executive Vice President and Chief Financial Officer, Johnson & Johnson. "We remain focused on the successful separation of our Consumer Health business and are confident in the long-term growth prospects of our Pharmaceutical and MedTech businesses that continue to drive meaningful value for Johnson & Johnson shareholders."