The consumer segment
Johnson & Johnson’s (JNJ) consumer segment includes various products like baby care, beauty, over-the-counter, oral health, wound care, and women’s health products. The consumer segment reported a 1.7% increase in revenues to $3.5 billion during 2Q17 as compared to $3.4 billion during 2Q16.
The above chart shows revenues for the consumer segment over the last few quarters. The segment revenues rose 2.3% at constant exchange rates, offset by a 0.6% negative impact from foreign exchange during 2Q17.
The over-the-counter franchise reported a 1.0% growth in revenues to $1.0 billion during 2Q17 as compared to 2Q16. The growth was driven by the strong performance of Quickmist and Tylenol.
The beauty franchise reported a 10.2% increase in revenues to $1.1 billion during 2Q17 as compared to 2Q16 revenues, driven by the inclusion of revenues of the acquired products from Vogue International, Light Mask, and NeoStrata in the US, as well as increased revenues from Neutrogena Sun products due to seasonal stocking effects. The growth was partially impacted by lower sales in the EMEA markets.
Wound care franchise
The wound care franchise reported a marginal growth of 0.4% in revenues to $232 million in 2Q17 as compared to 2Q16 revenues, driven by the strong performance of Band-aid and Neosporin products.
Oral care franchise
The oral care franchise reported a 2.2% decline in revenues to $394 million during 2Q17 as compared to 2Q16. The decline was driven by lower sales in US markets due to trade discounts, partially offset by increased sales of Total Care Zero in Japan and whitening products in China and Korea.
Baby care franchise
The baby care franchise reported a 6.8% decline in revenues to $494 million in 2Q17 as compared to 2Q16. The decline was due to trade discounting during the quarter.
Women’s health franchise
The women’s health franchise reported a 2.5% decrease in revenues to $276 million in 2Q17 as compared to 2Q16 revenues. The franchise’s performance was affected by the divestiture of the Tucks brand to Blistex in July 2016.
To divest company-specific risks, investors can consider ETFs like the iShares US Healthcare ETF (IYH), which holds 10.8% in Johnson & Johnson. IYH also holds 6.2% in Pfizer (PFE), 5.4% in Merck (MRK), and 3.4% in Celgene (CELG).