Johnson & Johnson (NYSE:JNJ) has projected a double-digit surge in profits for the year 2023 subsequent to the spinoff of its consumer health subsidiary, Kenvue (NYSE:KVUE). This unveiling marks the initial projection for the stand-alone operations of J&J’s pharmaceutical and medical device divisions.
In a historic move, J&J recently concluded a significant transformation, exchanging its shares with those of Kenvue’s, resulting in the pharmaceutical giant now holding a scaled-down 9.5% ownership stake in its former subsidiary.
Kenvue made its debut on the New York Stock Exchange in May, boasting a market capitalization of approximately $79 billion. Through a combination of debt offering and an initial public offering, J&J reaped cash proceeds amounting to $13.2 billion.
J&J’s Chief Financial Officer, Joseph Wolk, emphasized that the prime impetus behind this transaction has consistently been the strategic goal of fostering greater agility, flexibility, and industry-specific focus for both companies. He conveyed this during a pre-recorded call with investors.
Anticipating a prosperous year ahead, J&J has projected its adjusted reported earnings per share for 2023 to range between $10 and $10.10. This projection represents a 12.5% increase at the midpoint when compared to the figures from 2022.
Additionally, the corporation has announced plans to categorize its consumer health business as discontinued operations, leading to a recorded gain of $20 billion in the third quarter consequent to the spinoff.
Back in July, J&J expressed optimism regarding robust growth for the ongoing year. The company articulated its expectations for a resurgence in demand for procedures like joint replacements and other surgeries, as the impacts of both COVID-19 and inflation are anticipated to moderate.
Featured Image: Megapixl
Author Faith Yakubu 
