3 Jul

Performance Overview of JNJ’s Consumer Segment

WRITTEN BY Daniel Collins FEATURED IN Company News, Insights, & Analysis

Consumer segment’s revenue trends

In the first quarter, Johnson & Johnson’s (JNJ) Consumer segment generated revenues of $3.4 billion compared to $3.2 billion in the first quarter of 2017, which reflected ~5.3% YoY (year-over-year) growth.

In the US and international markets in the first quarter, its Consumer segment generated revenues of $1.4 billion and $2.0 billion, respectively. This compared to $1.4 billion and $1.8 billion in the first quarter of 2017 for ~1.6% and ~8.2% YoY growth, respectively.

Performance Overview of JNJ’s Consumer Segment

Baby Care business: Revenue trends

In the first quarter, Johnson & Johnson’s Baby Care business generated revenues of $457.0 million, including revenues of $97.0 million and $360.0 million from the US and international markets, respectively. In the first quarter, the Baby Care business witnessed an ~14.2% decline and ~5.3% growth in the US and international markets, respectively.

The increasing competition primarily contributed to the decline in revenues in the first quarter. This decline was partially offset by the geographic expansion in the Asia-Pacific region.

Beauty Care business: Revenue trends

Johnson & Johnson’s beauty products in the Consumer segment generated revenues of $1.1 billion in the first quarter compared to $981.0 million in the first quarter of 2017, which represents ~10.5% YoY growth.

In the US and international markets, baby care products generated first-quarter revenues of $611.0 million and $473.0 million, respectively, for ~7.8% and ~14.3% YoY growth. The positive impact of the timing of Neutrogena and Aveeno suncare products drove the revenue growth in the US market.

Oral Care business: Revenue trends

Johnson & Johnson’s oral care products in the Consumer segment generated revenues of $379.0 million in the first quarter, compared to $362.0 million in the first quarter of 2017, reflecting ~4.7% YoY growth.

Johnson & Johnson’s Oral Care segment generated revenues of $157.0 million and $222.0 million, respectively, from the US and international markets, which reflected ~1.0% and ~8.0% YoY growth, respectively.

OTC segment’s trends

Johnson & Johnson’s OTC (Over-the-Counter) business reported revenues of $1.1 billion in the first quarter, which included $465.0 million and $607.0 million from the US and international markets, respectively.

In the first quarter, Johnson & Johnson’s OTC business witnessed an ~2.5% decline in the US and ~13.2% growth in its international markets on a YoY basis.

The regional expansion of Rhinocort pushed JNJ’s OTC business. The cough and cold season in the US and the Asia-Pacific pushed the sales growth of Motrin and Tylenol among pediatric patients.

Women’s Health and Wound Care segments

In the first quarter, Johnson & Johnson’s Women’s Health products in the Consumer segment generated revenues of $234.0 million. This included $240.0 million from its international sales, which reflected ~0.4% YoY growth.

In the first quarter, Johnson & Johnson’s Wound Care segment generated revenues of $163.0 million, reflecting an ~7.0% YoY decline. In the first quarter, this business generated revenues of $60.0 million from its international markets. This represented an ~22.0% YoY decline, which was partially offset by sales of $103.0 million in the US market, where it witnessed ~5.1% YoY growth.

Among Johnson & Johnson’s peers in the consumer sector, Teva Pharmaceuticals (TEVA), Novartis (NVS), and GlaxoSmithKline (GSK) reported revenues of $5.1 billion, $12.7 billion, and $10.0 billion, respectively, in the first quarter.

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