On Oct. 18, $Johnson & Johnson(JNJ)$ reported its Q3 results for FY2022, beating market expectations.
- The revenue was $23.8 billion, beating expectations of $23.336 billion;
- net income was $4.458 billion, up 21.57% yoy from $3.667 billion in the same period last year.
In addition to the surprising results, $Johnson & Johnson(JNJ)$ brings new progress on the company spinoff. Johnson & Johnson released an announcement on its website, announcing "Kenvue" as the name of the new company focused on consumer health products.
In November last year, Johnson & Johnson said it would spin off its consumer health business for IPO within 18-24 months.
It is reported that Thibaut Mongon, who has worked for Johnson & Johnson for 20 years, has been appointed as the CEO-designate of Kenvue.
In terms of business segments, consumer health still accounts for the least amount of revenue in Q3, with US$3.795 billion, down 0.4% year-on-year.
Although consumer health has the smallest revenue share, its brands are well known, including a variety of branded over-the-counter drugs such as Tylenol, Merlin and Centrum, as well as Bondi, Listerine, Neutrogena, Neosporin, Aveeno, Clean & Clear and Rogaine.
The spin-off of Kenvue aims to compete with large consumer goods companies such as $Procter & Gamble(PG)$ and $L'Oreal Co.(LRLCY)$ .
Restructuring details
In November 2021, Johnson & Johnson embarked on one of the largest spin-offs in the company's 135-year history - a reorganization of its three businesses. The two companies will be listed separately.
The pharmaceuticals and medical devices businesses will be combined to form the "New Johnson & Johnson,"
Consumer health will be operated independently.
Kenvue's 44 brands include four large brands over $1 billion and 20 brands over $150 million. They are divided into three business segments.
1. Skin health/beauty segment, dedicated to providing the best care products for skin, including 16 brands such as Neutrogena, Aveeno, and Dr.Ci:Labo.
2. The basic health segment includes wound care, oral care, baby care and women's health, including Listerine, Band-Aid , OB tampons and 12 brands including Vivvi & Bloom, a new baby care brand launched in the US this year.
3. Personal care segment offers over-the-counter medicines and health products, such as Tylenol for headache relief and cold relief, Motrin for pain relief, Zarbee's for cough syrup, and 16 other brands.
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