The Consumer Healthcare segment
Johnson & Johnson’s (JNJ) consumer healthcare segment grew by 3.1% at constant exchange rates, reporting a revenue of ~$3,314 million for 3Q15 over 3Q14. The foreign exchange impacted this segment negatively by 10.8% during the quarter, making an overall fall of 7.7% in revenues for this segment.
Baby care franchise
The baby care franchise sales rose by 2.0% at constant exchange rates due to the successful launch of new baby care products, partially offset by lower sales of cleansers and creams primarily due to competition in China. The baby care franchise contributed ~15.3% of the segment’s sales for 3Q15.
Oral care franchise
The oral care franchise sales improved 3.5% at constant exchange rates, following the launch of new products under the Listerine brand and successful marketing campaigns. The oral care franchise contributed ~11.4% of the segment’s sales for 3Q15.
Over-the-counter (OTC) franchise sales improved 6.3% at constant exchange rates, following the growth of analgesics and Zyrtec—an allergy medication—in the United States. Results outside the United States were negatively impacted by the timing of seasonal inventory build for the upper respiratory products. The OTC franchise contributed ~29.0% of the segment’s sales for 3Q15.
Skin care franchise
Skin care franchise sales improved by 2.5% at constant exchange rates, following strong sales of Aveeno and Neutrogena products, partially offset by soft sales in China. Skin care contributed ~26.0% of total segment sales for 3Q15.
Women’s health franchise
Women’s health franchise sales improved ~13.3% at constant exchange rates, following the launch of new products and successful marketing campaigns outside US markets. The women’s health franchise contributed ~9.3% of total segment sales for 3Q15.
Wound care and other franchise
Wound Care franchise sales fell by ~11.9% at constant exchange rates, due to the divestiture of the Benecol brand outside US markets, completed in November 2014. This franchise contributed ~8.8% of total segment sales for 3Q15.
For the Consumer Products segment, other major companies include Unilever NV (UN), Nestle S.A. (NSRGY), Kimberly-Clark Corporation (KMB), and Procter & Gamble (PG). Investors can consider ETFs like the VanEck Vectors Pharmaceutical ETF (PPH), investing 7.4% of its portfolio in Johnson & Johnson.