Corporate Sales:

$93.8 billion

Beauty Sales (Skin, Beauty, Oral, Baby):

$7.7 billion

Key Personnel:

• Alex Gorsky, executive chairman
• Joaquin Duato, chief executive officer
• Thibaut Mongon, executive vice president and worldwide chairman, consumer health and CEO designate, the planned New Consumer Health Company
• Paul Ruh, CFO designate for the future New Consumer Health Company

Major Products/Brands:

Johnson’s Baby Products, Aveeno, Clean & Clear, Dabao, Le Petite Marseillais, Lubriderm, Neutrogena, OGX, Sundown, Vivvi & Bloom.

New Products:

Neutrogena Healthy Scalp Clarify & Shine with Pink Grapefruit Shampoo & Conditioner, Neutrogena Clear Coverage makeup, Neutrogena Home Compostable Makeup Removing Wipes, Neutrogena Stubborn Acne & Marks Treatments, Lubriderm Extra Dry Skin Advanced Therapy Moisturizing Cream, Band-Aid Hydro Seal Acne Blemish Patches.

Financial Highlights:

J&J’s overall corporate sales rose 13.6% last year to $93.8 billion. Consumer health sales improved 4.1% to $14.6 billion.

The company’s skin health/beauty sales climbed 2% to more than $4.5 billion. The company attributed the growth primarily to Covid-19 recovery, as well as strong performances from Neutrogena and Aveeno, and e-commerce acceleration partially offset by the divestiture of Dr. Ci:Labo - Sedona business in Asia Pacific and external supply constraints.

The company’s baby care sales climbed to $1.6 billion, an increase of 3.2% compared to the prior year. Growth was driven by Aveeno, Asia Pacific eCommerce strength, innovation and Covid-19 recovery.

2021-2022 Highlights:

In November 2021, J&J announced it would be separating its business to form a new, publicly traded Consumer Health company that will include brands such as Neutrogena, Aveeno, Johnson’s and Listerine, as well as Band-Aid and Tylenol. The planned separation of the Consumer Health business is expected to occur in 2023.

The new company is tasked with four key goals:
 

• Increase management focus, resources, agility and speed to effectively address differing industry trends and to better meet the needs of the new Johnson & Johnson and the New Consumer Health Company patients and consumers;
• Further focus capital allocation based on the objectives of each independent company;
• Provide each company with “a compelling financial profile” that more accurately reflects the strengths and opportunities of each business and, as a result, offers investors a more targeted investment opportunity;
• Align corporate and operational structures so each company is better able to drive growth and value creation.

In May 2022, the company announced the appointment of Thibaut Mongon as CEO designate and Paul Ruh as CFO of the company’s new Consumer Health company.

In July 2022, J&J launched Vivvi & Bloom, a premium, five-product baby care line that’s vegan, hypoallergenic, pH-balanced and was co-created by a diverse group of Millennial and Gen Z parents and caregivers. The line is formulated with nature-inspired ingredients and is not tested on animals.

In August 2022, J&J announced it would discontinue its talc-based Johnson’s Baby Powder globally in 2023 and transition to an all cornstarch-based baby powder portfolio.

Despite having weathered a flurry of lawsuits, the company stood by its long-held position on the safety of its talc-based powder, stating, “We stand firmly behind the decades of independent scientific analysis by medical experts around the world that confirms talc-based Johnson’s Baby Powder is safe, does not contain asbestos, and does not cause cancer.”

Looking Ahead:

In Q1, 2022, corporate sales rose 5% to $23.4 billion but were offset by consumer health sales, which fell 1.5% to just under $3.6 billion. J&J blamed the decline, in part, to external supply constraints that primarily affected its skin health/beauty business.

In Q2, corporate sales climbed to $24 billion. Consumer health improved this quarter to $3.8 billion thanks in part to the international performance of Neutrogena, but the business unit was still down 1.3% in comparison to Q2 2021 reported earnings. 

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