(Reuters) – Johnson & Johnson on Wednesday expected growth of 12.5% in its adjusted annual profit after completing the spin-off of consumer health firm Kenvue.
Johnson & Johnson also said it would file its consumer health business as discontinued operations and report a gain of $20 billion in the third quarter as a result of the separation.
It expects adjusted earnings per share for 2023 to be between $10.00 – $10.10, 12.5% higher at the midpoint than in 2022.
Kenvue’s separation marked the biggest shake-up in the healthcare group’s history as it sought to focus on its two big businesses — pharmaceuticals and medical devices.
J&J completed an exchange offer for its shares to end Kenvue’s spin-off last week, and said it generated $13.2 billion in cash proceeds as a result of Kenvue’s debt offering and initial public offering.
Kenvue, which debuted on the New York Stock Exchange in May, has a market capitalization of about $78.9 billion. Johnson & Johnson maintains a 9.5% stake in the company.
(Reporting by Manas Mishra in Bengaluru; Editing by Devika Seemanath)
