Johnson & Johnson’s second-quarter profit rises as revenue soars

US company earned a net profit $6.3bn in the three months ending June 30

Johnson & Johnson's second-quarter revenue surged 27.1 per cent on an annual basis to $23.3 billion. AP

Johnson & Johnson’s second-quarter net profit soared more than 73 per cent on the back of strong sales across its medical devices, consumer health and pharmaceutical businesses.

Net profit surged to $6.3 billion in the three months ending June 30, from the same period a year earlier.

Revenue during the quarter increased 27.1 per cent on an annual basis to $23.3bn, beating the $22.2bn average analysts' estimate.

“Our second-quarter results showcase Johnson & Johnson’s diversified portfolio,” Alex Gorsky, chairman and chief executive, said.

“I am so proud of our 136,000 colleagues who remain focused on delivering our medicines and products to patients and consumers around the world … in addition to advancing our pipeline with new product launches and regulatory submissions,” added Mr Gorsky.

The New Jersey-based company earned about 54 per cent of its revenue from the pharmaceutical business — which developed the single-shot Covid-19 vaccine. It contributed $12.6bn, 17.2 per cent up year-on-year, to the overall sales in the April-June period.

Medical devices and consumer health businesses constituted 29.9 per cent ($6.9bn) and 16 per cent ($3.7bn), respectively, of the overall sales during the quarter.

“These accomplishments exemplify our commitment to advancing transformational innovations that improve the health of people and communities everywhere while continuing to deliver long-term value to all of our stakeholders,” said Mr Gorsky.

Johnson & Johnson ended the second quarter with about $25bn of cash in marketable securities and almost $33bn of debt, resulting in $8bn of net debt. The company also distributed $2.8bn to shareholders during the quarter.

“Our financial position and balance sheet remain strong. As we enter the back half of the year, we are well positioned to continue to deploy capital in a strategic, value-creating way that will benefit stakeholders over the long term,” the company’s chief financial officer, Joseph Wolk, told investors during an earnings call.

“We continue to be poised for further growth and value creation not just in 2021, but more importantly for 2022 and beyond … our people have been a driving force … they have demonstrated resilience and agility while remaining committed to ensuring our life-saving medicines and products reach patients and consumers around the world,” he added.

The company said it is too early to provide a future outlook for its Covid-19 vaccine, given the uncertainty over the need for boosters and new variants.

“Our vaccine appears to have durability for at least eight months and is effective against the recent Delta variant and other highly prevalent viral variance … the Covid-19 vaccine market will continue to evolve and we look forward to sharing additional details as more data become available,” said Mr Wolk.

Johnson & Johnson expects to sell $2.5bn of its Covid-19 vaccine this year, despite mounting concerns over the shot’s effectiveness against the Delta variant, CNBC reported on Wednesday.

Global sales of the Covid vaccine in the second quarter were $164 million.