Analyzing Johnson & Johnson’s Geographic Performance

Johnson & Johnson (JNJ) derives revenue from four regions: the United States, Europe, the Western Hemisphere excluding the United States, and the Asia-Pacific region and Africa.

Between 1Q17 and 1Q18, European revenue grew 24.3% from $3.8 billion to $4.8 billion, Asia-Pacific and African revenue grew 20% from $3 billion to $3.7 billion, US revenue grew 6% from $9.3 billion to $9.9 billion, and revenue from its smallest segment, the Western Hemisphere excluding the United States, grew 7.8% from $1.4 billion to $1.5 billion.

Johnson & Johnson’s consumer segment caters to the baby care, women’s health, beauty, and wound care markets. Some of its major brands in these categories are Listerine in oral care, Aveeno, Clean & Clear, Dabao, and Neutrogena in beauty, Tylenol, Sudafed, Benadryl, and Zyrtec in OTC (over-the-counter) medicines, and Stayfree and Carefree in women’s health.

Between 1Q17 and 1Q18, the consumer segment’s total sales rose 5% from $3.2 billion to $3.4 billion. US sales, which rose from $1.4 billion to $1.4 billion, were outpaced by international sales, which rose 8.2% from $1.8 billion to $1.9 billion.

In the consumer segment, beauty, baby care, and OTC products were major contributors. Between 1Q17 and 1Q18, beauty sales grew 10.5% from $981 million to $1.1 billion, baby care sales grew 0.4% from $455 million to $457 million, and OTC sales grew ~5.8% from ~$1.0 billion to ~$1.1 billion. In the next part of this series, we’ll look at Johnson & Johnson’s pharmaceutical segment.