Johnson & Johnson (NYSE:JNJ) Q3 2020 Earnings Conference Call - Final Transcript
Oct 13, 2020 • 08:30 am ET
currency had no impact in the quarter. In the US, sales increased 2.7%, while in regions outside the US, our reported and operational increase was 0.6%. Excluding the net impact of acquisitions and divestitures, adjusted operational sales increase was 2% worldwide; 2.8% in the US; and 1.1% outside the US. Results were negatively impacted by the COVID-19 pandemic. However, we did see improvement throughout the quarter with procedure volume recovering faster than expected, as well as positive trends in scripts and physician office visits.
Turning now to earnings. For the quarter, net earnings were $3.6 billion and diluted earnings per share was $1.33 versus diluted earnings per share of $0.66 a year ago. Excluding after-tax intangible asset amortization expense and special items for both periods, adjusted net earnings for the quarter were $5.9 billion and adjusted diluted earnings per share was $2.20, representing increases of 3.5% and 3.8% respectively, compared to the third quarter of 2019. On an operational basis, adjusted diluted earnings per share increased 2.4%.
Beginning with Consumer Health. I would now comment on business segment sales performance for the third quarter, highlighting items that build upon the slides you have in front of you. Unless otherwise stated, percentages quoted represent the operational sales change in comparison to the third quarter of 2019 and therefore, exclude the impact of currency translation. Worldwide Consumer Health sales totaled $3.5 billion and grew 3% with growth in the US of 11.6% and a decline outside the US of 2.7%. Consumer Health delivered strong performance in our US OTC, oral care and wound care businesses, partially offset by the negative impact of COVID-19 outside the US, primarily in our OTC and skin health/beauty businesses. We are making good progress executing our SKU rationalization program, which, as expected, negatively impacted sales results in mostly OUS markets. However, this was mostly offset by some sales-related true-ups in Latin America. Additionally, e-commerce sales continue to drive growth across most brands.
Over-the-counter medicines grew globally by 4% on strong US sales of TYLENOL in analgesics, due to share growth and increased demand driven by COVID-19; PEPCID in digestive health due to a competitive withdrawal; and ZYRTEC in allergy due to share gains, incremental distribution and strong in-season marketing plans. Growth was also driven by increased retailer stocking across multiple brands in preparation for a potential upcoming cold and flu season. This strong performance was partially offset outside the US by the impact of COVID-19 consumption declines in China in pain and in cough, cold and digestive health in other regions. Our OTC business is growing above the market gaining 0.7 points of share on a year-to-date basis.
The skin health and beauty franchise returned to growth of 0.9% on strong performance of OGX, due to share gains coupled with increased retailer stocking across multiple brands and a reduction in sun care returns due to a rebound in category growth. This growth was partially offset by competitive pressures in the US and the negative impact of COVID-19