Johnson & Johnson reported a net loss of $68 million in the first quarter to the end of March because of a one-time charge related to its talc baby powder liabilities, costs of the coming spin-off of its consumer health business and Covid-19 vaccine related costs.
This month, the company agreed to pay $8.9 billion to resolve all cancer lawsuits tied to its talc-based powders.
The company reported a net profit of more than $5.1 billion in the same period last year.
Revenue during the first quarter increased 5.6 per cent annually to more than $24.7 billion, exceeding analysts’ expectations of $23.6 billion, J&J said in a statement on Tuesday.
The New Jersey company earned more than half of its revenue, or nearly $12.5 billion, from the US markets and the rest from the international markets in the first quarter.
The company’s shares, which have dropped almost 10 per cent in the past year, fell 2.7 per cent to trade at $161.18 a share at 7.25pm UAE time on Tuesday.
“Our first quarter results demonstrate strong performance across all three segments of our business,” Joaquin Duato, chairman and chief executive of the company, said.
The company expects 2023 financial year revenue of between $97.9 billion and $98.9 billion, almost $1 billion higher than the guidance provided in January.
It also improved its full-year adjusted earnings forecast to $10.60 to $10.70 a share, from an earlier outlook of $10.45 to $10.65.
In the January-March period, J&J earned more than 54 per cent of its revenue from the pharmaceutical business that developed the Covid-19 vaccine.
The division added about $13.4 billion, 4.2 per cent more year-on-year, to overall sales in the quarter.
Meanwhile, the company’s Covid-19 vaccine related costs jumped to $444 million in the last quarter.
It included “remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the company's completion of its vaccine contractual commitments”, J&J said.
Sales in the company’s MedTech business rose 7.3 per cent annually to more than $7.4 billion in the first quarter. Its growth was driven primarily by products related to interventional solutions, contact lenses, general surgery and orthopaedics, J&J said.
Its consumer health business, which makes products such as Neutrogena face wash and Listerine, contributed to about 15.5 per cent, or nearly $3.9 billion of overall sales during the quarter.
J&J said the segment’s growth was propelled by the sale of over-the-counter products.
The company aims to spin off its consumer health business into a publicly traded company this year.
“With this momentum, I look forward to the remainder of the year, one filled with exciting catalysts that will create both near- and long-term value for patients and all of our stakeholders,” said Mr Duato.
J&J also approved a 5.3 per cent quarterly dividend increase to $1.19 per share.
