Johnson & Johnson revises full-year guidance as rising dollar value drives down sales outside the US
THE WHAT? Johnson & Johnson revised its full-year guidance for the second straight quarter due to the impact of the stronger US dollar on earnings estimates.
THE DETAILS The company recorded total sales growth of 3% to US$24 billion with operating growth of 8% and adjusted operating growth of 8.1%.
Joaquin Duato, Chief Executive, said, “Our strong second quarter results across Johnson & Johnson reflect the strength and resilience of our company’s market leadership amid macroeconomic challenges.
“I am continually motivated by the focus and passion of my colleagues at Johnson & Johnson and their dedication to delivering transformative healthcare solutions to patients and consumers around the world. »
Consumer Health adjusted worldwide operating sales increased 2.9%. Key contributors to growth include Neutrogena in the international Skin Health/Beauty business.
THE WHY ? Johnson & Johnson told the FT that adverse currency movements would cost it up to $1.5 billion more in reported sales this year than it had previously estimated.
J&J also lowered its 2022 adjusted earnings forecast from US$10.15 to 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 the US dollar have reached parity, which we haven’t seen in nearly two decades. It is also the rapid rate at which fluctuations occur – a dynamic that has only been experienced a few times over the same period.