THE WHAT? Johnson & Johnson has revised its full-year forecast for the second consecutive quarter due to the strengthening U.S. dollar impacting estimates for reported results.
THE DETAILS The company reported total sales growth of 3 percent to US$24 billion with operational growth of 8 percent and adjusted operational growth of 8.1 percent.
Joaquin Duato, Chief Executive Officer, said, “Our solid second quarter results across Johnson & Johnson reflect the strength and resilience of our Company’s market leadership in the midst of macroeconomic challenges.
“I am continually energized by the focus and passion of my Johnson & Johnson colleagues and their dedication toward delivering transformative healthcare solutions to patients and consumers around the world.”
Consumer Health worldwide adjusted operational sales increased 2.9 percent. Major contributors to growth included Neutrogena in international Skin Health/Beauty.
THE WHY? Johnson & Johnson told the FT that unfavourable foreign exchange moves would cost it up to an additional US$1.5bn in reported sales this year than it had previously estimated.
J&J also downgraded its 2022 adjusted profit forecast from between US$10.15 and US$10.35 to US$10 and US$10.10 per share.
Joseph Wolk, Chief Financial Officer, said, “It’s not just that the euro and US dollar have reached parity, something we haven’t seen in nearly two decades. It’s also the rapid pace at which the fluctuations are occurring – a dynamic only experienced a few times over that same period.”