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Johnson & Johnson’s Consumer Segment in 4Q17

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Consumer segment

Johnson & Johnson’s (JNJ) Consumer segment includes beauty products, baby care products, over-the-counter products, oral care products, women’s health products, and wound care products. The segment reported revenues of ~$3.5 billion in 4Q17, a ~3.1% growth compared to ~$3.4 billion in 4Q16. Growth was driven by a marginal increase of ~0.4% in operating revenues and a 2.7% growth due to the favorable impact of foreign exchange.

The above chart compares the revenues of various franchises in the Consumer segment since 1Q16.

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Baby care franchise

The baby care franchise reported revenues of ~$490 million in 4Q17, a 0.6% decline compared to ~$493 million in 4Q16. The decline in revenues was due to competition from other products, while the expansion of the Aveeno brand in the Asia-Pacific region partially offset the decline.

Beauty franchise

The beauty franchise reported revenues of ~$1.1 billion in 4Q17, a 4.4% growth compared to ~$1 billion in 4Q16. Revenue growth was driven by new products in the Asia-Pacific and EMEA (Europe, the Middle East, and Africa) markets.

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Oral care franchise

The oral care franchise reported revenues of ~$393 million in 4Q17, a 1% decline compared to ~$397 million in 4Q16. The revenue decline was driven by lower sales due to competitive pressures in Latin America, lower sales in the EMEA region, and the divestiture of Reach outside the United States, partially offset by new products in the Asia-Pacific region.

Over-the-counter franchise

The over-the-counter franchise reported revenues of ~$1.1 billion in 4Q17, a 6.4% growth compared to ~$1 billion in 4Q16. Revenue growth was driven by strong sales of respiratory products, including Tylenol and Benadryl, and the inclusion of Rhinocort revenues.

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Women’s health franchise

The women’s health franchise reported revenues of ~$262 million in 4Q17, an 0.8% decline compared to ~$264 million in 4Q16. The decline in revenues was driven by competition and lower sales in the European Union.

Wound care and others franchise

The wound care franchise reported revenues of ~$180 million in 4Q17, a 2.3% growth compared to ~$176 million in 4Q16. Revenue growth was driven by strong sales of the Band-Aid brand in Japanese markets, partially offset by lower sales in the US markets due to competition.

The iShares Global Healthcare (IXJ) holds 7.5% of its total investments in Johnson & Johnson (JNJ), 3.2% in Merck & Co. (MRK), 4.8% in Novartis (NVS), and 2.3% in Bristol-Myers Squibb (BMY).

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