uploads/2019/04/Graph-3-7-1.png

Beauty: A Key Growth Driver of JNJ’s Consumer Segment in Q1

By

Updated

Financial performance

In the first quarter, Johnson & Johnson’s (JNJ) Consumer segment reported 2.2% YoY (year-over-year) growth in worldwide revenues on an operational basis, ahead of the 1% growth reported by the overall market in the categories in which the company participates. The Consumer segment reported 0.2% YoY sales growth in the US market both on a reported and an operational basis. The segment reported a YoY fall of 4.2% on a reported basis but a YoY rise of 3.7% on an operational basis in revenue earned from international markets.

Excluding the impact of acquisitions and divestitures, Johnson & Johnson’s Consumer segment reported 0.7% YoY growth in worldwide sales, flat YoY performance in US market sales, and 1.3% YoY growth in ex-US market sales in the first quarter.

Article continues below advertisement

Beauty business drivers

In the first quarter, Johnson & Johnson’s Beauty segment reported worldwide sales of $1.09 billion, a YoY rise of 3.6% on an operational basis. According to the company’s first-quarter earnings conference call, adjusting for the impact of its divestitures of its anti-dandruff shampoo brand, Nizoral, certain other ketoconazole‐based shampoo brands, and RoC Skincare products as well as its acquisition of Ci:z Holdings Co., the company reported a 0.6% YoY rise in worldwide sales in its Beauty segment in the quarter.

According to the company’s first-quarter earnings conference call, its prominent beauty brands Neutrogena, OGX, and Maui Moisture reported a combined 4% YoY revenue rise in the quarter, significantly higher than the overall market’s growth. In the United States, Neutrogena continues to garner market share across categories such as sun protection, acne treatments, moisturizing treatments, and facial cleansers. The brand also reported an increase in ex-US sales driven by new product launches. Johnson & Johnson also reported robust uptake for OGX and Maui Moisture in the first quarter.

Advertisement

More From Market Realist