J&J forecasts 12.5% growth in 2023 profit after Kenvue spinoff

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(c) Reuters. FILE PHOTO: Johnson & Johnson offices in Irvine, California (U.S.), October 14, 2020. REUTERS/Mike Blake

(Reuters) -Johnson & Johnson on Wednesday forecast 12.5% growth in its annual adjusted profit after completing the separation of consumer health company Kenvue (NYSE:) . J&J (NYSE) said that it will also present its consumer business as discontinued operations, and record a $20 billion gain in the third-quarter as a result.

It is expecting 2023 adjusted reported earning per share between $10.10 and $10.00. This would be 12.5% higher than 2022. The separation of Kenvue marked the largest shake-up ever in the history of the healthcare conglomerate. It wanted to focus its efforts on two major businesses: pharmaceuticals and medical device. J&J announced last week that it completed its exchange offer to separate Kenvue and generated $13.2 billion of cash proceeds from the Kenvue initial public offering and debt offering. Kenvue debuted at the New York Stock Exchange last May and has a market cap of approximately $78.9 Billion. J&J holds a 9.5% share in the company.