Johnson & Johnson has raised its 2023 full-year guidance after reporting a 7 per cent jump in its second-quarter net profit, driven by increased sales.
The company on Thursday reported a net profit of more than $5.1 billion in the three months to the end of June.
Sales during the period rose 6.3 per cent annually to more than $25.5 billion, exceeding the analysts’ expectation of $24.6 billion. Earnings per share rose 8.9 per cent to $1.96.
The company said it expects full-year sales between $98.8 billion and $99.8 billion, nearly $1 billion up from the guidance provided in April.
“Our robust performance in the second quarter is a testament to the hard work and commitment of our colleagues around the world,” said chief executive Joaquin Duato.
“We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on pharmaceutical and MedTech innovation.”
The company’s shares, which have dropped almost 11 per cent since the start of the year, were trading 5.8 per cent higher at $167.94 at 6.40pm UAE time on Thursday.
The New Jersey company earned more than half of its revenue, or more than $13.4 billion, from the US markets and the rest ($12 billion) from the international markets in the second quarter.
J&J's pharmaceutical business, that developed the Covid-19 vaccine, accounted for nearly 54 per cent of the company's overall sales in the April to June period
The division added about $13.7 billion, 3.1 per cent more year-on-year, to total sales in the quarter.
Sales in the company’s MedTech business rose 12.9 per cent annually to nearly $7.8 billion in the second quarter. Its growth was driven primarily by products related to interventional solutions, contact lenses, general surgery, advanced surgery and orthopaedics, J&J said.
The company's consumer health business, which makes products such as Neutrogena face wash and Listerine, contributed about 15.7 per cent, or more than $4 billion of overall sales during the quarter.
J&J said the segment’s growth was propelled by the sale of over-the-counter products.
April to June quarterly earnings did not include any US sales from the J&J’s Covid vaccine. In April, the company said it expected no revenue in the US market after the first quarter as its commitments under government contracts were completed.
However, the shot added $285 million in international revenue.
Race card
4pm Al Bastakiya Listed US$300,000 (Dirt) 1,900m
4.35pm Mahab Al Shimaal Group 3 $350,000 (D) 1,200m
5.10pm Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m
5.45pm Burj Nahaar Group 3 $350,000 (D) 1,600m
6.20pm Jebel Hatta Group 1 $400,000 (T) 1,800m
6.55pm Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m
7.30pm Dubai City Of Gold Group 2 $350,000 (T) 2,410m
The National selections:
4pm Zabardast
4.35pm Ibn Malik
5.10pm Space Blues
5.45pm Kimbear
6.20pm Barney Roy
6.55pm Matterhorn
7.30pm Defoe
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Financing stage: Series A ($4 million)
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How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
