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How JNJ’s Baby Care, Beauty, and OTC Products Performed in 3Q17

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Baby care revenue trends

In 3Q17, Johnson & Johnson’s (JNJ) baby care products generated revenues of $477 million, a ~4% decline on a year-over-year (or YoY) basis and a 3% decline on a quarter-over-quarter basis.

In 3Q17, in the US market and outside the US markets (international markets), baby care products reported revenues of $100 million and $377 million, respectively. Johnson & Johnson’s baby care products reported year-to-date September 2017 revenues of $1.4 billion compared to $1.5 billion in YTD (year-to-date) September 2016.

Beauty products revenue trends

In 3Q17, JNJ’s beauty products generated revenues of $1.0 billion, which reflected ~6% growth on a year-over-year (or YoY) basis and a 4% decline on a quarter-over-quarter basis. In 3Q17, in the US and international markets, JNJ’s beauty care products reported revenues of $523 million and $510 million, respectively, compared to $517 million and $462 million in 3Q16.

JNJ’s beauty products reported YTD September 2017 revenues of $3.1 billion compared to $2.8 billion in YTD September 2016.

OTC product revenue trends

In 3Q17, OTC products generated revenues of $1.0 billion, which reflected ~6% growth on a YoY basis and 1% growth quarter-over-quarter. In 3Q17, in US and international markets, OTC products saw revenues of $401 million and $601 million, respectively, compared to $386 million and $557 million in 3Q16.

JNJ’s OTC products reported YTD September 2017 revenues of $3.0 billion compared to $2.9 billion in YTD September 2016.

In 3Q17, Teva Pharmaceuticals (TEVA), Mylan (MYL), and GlaxoSmithKline (GSK), Johnson & Johnson’s peers in the OTC drugs market, generated revenues of $5.6 billion, $3.0 billion, and 7.8 billion British pounds, respectively.

The sales growth in Johnson & Johnson’s OTC products and beauty products could boost the share prices of the Health Care Select Sector SPDR Fund (XLV). Johnson & Johnson makes up about ~11.9% of XLV’s total portfolio holding.

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