Personal care major Johnson & Johnson (J&J) has reported a rise in first half (H1) sales for 2022 despite a dip in pre-adjusted profits and consumer health sales hit by COVID-19, input costs and supply issues.
Last week, Johnson & Johnson (J&J) reported sales of €23.7bn ($24bn) for Q2 2022, up 3% on the previous year, along with first half (H1) sales of €46.6bn ($47.4bn), up 4%. Net earnings or profit across the group, however, declined by 23.3% to €4.75bn ($4.8bn) in Q2. Adjusted net earnings for the quarter, excluding after-tax intangible asset amortization expense and special items, sat at €6.79bn ($6.9bn), up 4.3%.
Sales in J&J’s consumer health division – containing its oral care and skin health portfolio, soon to be carved out into a standalone business – were down 1.3% for Q2 at €3.74bn ($3.8bn) and down 1.4% for H1 at €7.27bn ($7.39bn). Jessica Moore, VP of investor relations at Johnson & Johnson, said results in this division had been “negatively impacted by regional COVID-19 mobility restrictions”, particularly the skin health and beauty franchise.
Beauty and skin care facing macro headwinds
Joseph Wolk, executive VP and CFO at Johnson & Johnson, told analysts the company’s beauty and skin health portfolios were also particularly exposed to industry-wide “macro headwinds” such as supply constraints and inflationary pressures around input costs. Though Wolk noted the former had already started to ease in Q2.