Did Johnson & Johnson’s Consumer Healthcare Segment Grow in 2Q15?

An Investor’s Guide to Johnson & Johnson's 2Q15 Earnings

(Continued from Prior Part)

The Consumer Healthcare segment

Johnson & Johnson’s (JNJ) Consumer Healthcare segment grew by 2.3% at constant exchange rates, reporting a revenue of ~$3,483 million for 2Q15 over 2Q14. The foreign exchange rate impacted this segment negatively by 9.3% during 2Q15, resulting in an overall fall of 7% in revenues for this segment.

Baby care franchise

Johnson & Johnson’s baby care franchise sales fell 1.2% at constant exchange rates due to lower sales of cleansers and creams. This was primarily due to competition in China. The baby care franchise contributed ~15.5% of segment sales for 2Q15.

Oral care franchise

Oral care franchise sales improved 4.5% at constant exchange rates, following the launch of new products under the Listerine brand and successful marketing campaigns. The oral care franchise contributed ~11% of segment sales for 2Q15.

Over-the-counter franchise

Over-the-counter franchise sales improved 8.2% at constant exchange rates, following an increased growth of Zyrtec in the United States and upper respiratory outside the United States. The OTC franchise contributed ~28% of segment sales for 2Q15.

Skin care franchise

Skin care franchise sales fell by ~0.9% at constant exchange rates, as new product sales were offset by the timing of the US trade inventory build. Skin care contributed ~25.7% of total segment sales for 2Q15.

Women’s health franchise

Women’s health franchise sales improved ~10% at constant exchange rates, following new products launch and successful marketing campaigns outside the US markets. The women’s health franchise contributed ~9% of total segment sales for 2Q15.

Wound care franchise

Wound care franchise sales fell by ~7.6% at constant exchange rates due to the divestiture of the Benecol brand outside US markets in November 2014. This franchise contributed ~10.8% of total segment sales for 2Q15.

For the Consumer Products segment, other major companies include Unilever NV (UN), Nestlé S.A. (NSRGY), Kimberly-Clark (KMB), and Procter & Gamble (PG). Investors can consider ETFs like the Health Care Select Sector SPDR ETF (XLV), which holds ~9.7% of its total investments in Johnson & Johnson.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Johnson & Johnson Stock Remained Neutral to 2Q15 Earnings

• Part 2 - Why Johnson & Johnson’s Growth Fell in 2Q15

• Part 3 - Johnson & Johnson’s Segment Performance in 2Q15