A Snapshot of Johnson & Johnson’s Consumer Segment

Johnson & Johnson’s Consumer segment is focused on baby care, oral care, skin care, and other consumer products. It contributes ~19–20% of the company’s revenue.

For 2014, this segment generated revenue of about $14.5 billion. It was an operational increase of 1%. It was offset by the negative currency impact of 2.4%. The total decrease was 1.4%—compared to the year before. The company went for the divestiture of women’s sanitary protection products in the US, Canada, and the Caribbean. The divestiture was completed by the end of 2013.

As a percentage of sales, the pre-tax profit was 13.4% in 2014. This was achieved mainly due to the cost containment initiatives.

The Consumer segment includes products for OTC (over-the-counter) sales, skin care, baby care, oral care, wound care, and women’s health. The key products from this segment are:

• OTC franchise – analgesics and upper respiratory products
• skin care franchise – Aveeno, Neutrogena, and Dabao product lines
• baby care franchise – Johnson’s baby products
• oral care franchise – Listerine products
• wound care franchise – Band-Aid, Bengay, and Neosporin products

These products are marketed to general public and sold through retail outlets and distributors across the globe.

Consumer Products is a segment where the products are sold mainly due to the brand reputation and the trust for its quality. A company like Johnson & Johnson has over 100 brands. A major part of the brands is focused on consumer products. A few of the major brands for this segment include:

• Johnson’s baby for baby care products
• Aveeno, Neutrogena, Johnson’s, Clean & Clear, and Dabao for skin care products
• Band-Aid, Bengay, Savlon, and Neosporin for wound care products
• Listerine and Rembrandt for oral care products
• Splenda and Benecol for nutritionals
• Visine and Acuvue for vision care products
• Tylenol, Sudafed, Pepcid and Benadryl for OTC medicines

For the Consumer Products segment, other major companies include Unilever NV (UN), Nestle S.A. (NSRGY), Kimberly-Clark Corporation (KMB), and Procter & Gamble (PG). Johnson & Johnson (JNJ) forms about 10.4% of the total assets of the Health Care Select Sector SPDR ETF (XLV).