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Johnson & Johnson’s Consumer Business in 4Q17

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Jan. 31 2018, Updated 10:33 a.m. ET

Consumer business

Johnson & Johnson’s (JNJ) Consumer business includes various beauty products, baby care products, oral care products, over-the-counter products, women’s health products, and wound care products.

JNJ’s Consumer business reported 3.1% growth in revenues to ~$3.5 billion during 4Q17, compared to ~$3.4 billion during 4Q16. This includes 0.4% growth in revenues at constant exchange rates and its 2.7% positive impact of foreign exchange.

The chart above compares the revenues for various franchises for JNJ’s Consumer segment since 1Q16.

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Baby care franchise

JNJ’s baby care franchise reported a 0.6% decline in revenues to $490.0 million during 4Q17 compared to $493.0 million during 4Q16. The decline in revenues was mostly due to competition with other products in the markets. This decline was partially offset by growth in Aveeno baby products due to expansion in the Asia-Pacific region.

Beauty franchise

Johnson & Johnson’s (JNJ) beauty franchise reported 4.4% growth in revenues to $1.11 billion during 4Q17, compared to $1.06 billion in 4Q16. The increase in revenues was driven by new product launches in the Asia-Pacific and EMEA (Europe, Middle East, and Africa) markets.

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Oral care franchise

JNJ’s oral care franchise reported a decline of 1.0% in revenues to $393.0 million during 4Q17 compared to $397.0 million in 4Q16. This revenue decline was driven by competition in Latin America, lower sales in EMEA, and the divestiture of Reach outside the US. This decline was partially offset by new product launches in the Asia-Pacific market.

Over-the-counter franchise

Johnson & Johnson’s over-the-counter franchise reported 6.4% growth in revenues to $1.1 billion during 4Q17 compared to ~$1.0 billion during 4Q16. The increase in revenues was driven by the strong performance of upper respiratory products like Tylenol and Benadryl in Asia-Pacific and the inclusion of its Rhinocort revenues.

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Women’s health franchise

Johnson & Johnson’s (JNJ) women’s health franchise reported a decline of ~0.8% in revenues to $262.0 million during 4Q17 compared to $264.0 million during 4Q16. The decline in revenues was due to competition and lower sales in the European Union.

Wound care/others franchise

JNJ’s wound care franchise reported 2.3% growth in revenues to $180.0 million during 4Q17 compared to $176.0 million during 4Q16. The increase in revenues was driven by strong performance of its BandAid brand in Japan, and it was offset by lower sales in the US markets due to competition.

The Health Care Select Sector SPDR ETF (XLV) holds 11.3% of its total investments in Johnson & Johnson (JNJ), 6.5% in Pfizer (PFE), 5.0% in Merck & Co. (MRK), and 3.1% in Bristol-Myers Squibb (BMY).

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