J&J Reports Q2 Results

Johnson & Johnson recorded sales of $18.5 billion for the second quarter of 2016, an increase of 3.9% as compared to the second quarter of 2015. Operational sales results increased 5.3% and the negative impact of currency was 1.4%, according to the company.
 
Domestic sales increased 7.4% while international sales increased 0.4%, reflecting operational growth of 3.1% and a negative currency impact of 2.7%.  Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.9%, domestic sales increased 8.8% and international sales increased 6.9%.  Operations in Venezuela negatively impacted worldwide operational sales growth by 30 basis points, and international sales growth by 70 basis points.  
 
Worldwide consumer sales of $3.4 billion for the second quarter 2016 represented a decrease of 1.8% versus the prior year, consisting of an operational increase of 1.5% and a negative impact from currency of 3.3%. Domestic sales increased 2.1% while international sales decreased 4.4%, which reflected an operational increase of 1.0% and a negative currency impact of 5.4%.  Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 3.9%, domestic sales increased 6.8% and international sales increased 2.0% 
 
J&J said operations in Venezuela negatively impacted the worldwide consumer unit’s operational sales growth by 120 basis points, and international sales growth by 200 basis points.
 
Primary contributors to consumer operational sales results were Neutrogena and Aveeno skin care products, over-the-counter
analgesics, digestive health products,  international anti-smoking aids and Listerine oral care products.
 
During the quarter, the acquisitions of NeoStrata Company, Inc. and Hipoglós diaper rash cream brand in Brazil were completed. In addition, subsequent to the quarter, the acquisition of Vogue International was completed for $3.3 billion in cash.

“We continue to see good momentum through the first half of 2016, delivering solid results in the second quarter, supported by strong underlying growth across our enterprise,” said Alex Gorsky, chairman and CEO.  “We saw notable strength in our Pharmaceuticals business due to the continued success of new products, and also achieved significant clinical milestones, advancing our robust pipeline. In our consumer business, we are executing strategic portfolio decisions to expand our market leadership in key segments, and in medical devices, we are continuing to accelerate our growth driven by new product launches and transforming our commercial models.”