Johnson and Johnson 2015 Annual Report Download - page 24

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Analysis of Sales by Business Segments
Consumer Segment
Consumer segment sales in 2015 were $13.5 billion, a decrease of 6.8% from 2014, which included 2.7% operational
growth offset by a negative currency impact of 9.5%. U.S. Consumer segment sales were $5.2 billion, an increase of
2.5%. International sales were $8.3 billion, a decrease of 11.9%, which included 2.7% operational growth offset by a
negative currency impact of 14.6%. In 2015, divestitures had a negative impact of 1.4% on the worldwide Consumer
segment operational growth.
Major Consumer Franchise Sales:
% Change
(Dollars in Millions) 2015 2014 2013 ’15 vs. ’14 ’14 vs. ’13
OTC $3,975 4,106 4,028 (3.2)% 1.9
Skin Care 3,531 3,758 3,704 (6.0) 1.5
Baby Care 2,044 2,239 2,295 (8.7) (2.4)
Oral Care 1,580 1,647 1,622 (4.1) 1.5
Women’s Health 1,200 1,302 1,568 (7.8) (17.0)
Wound Care/Other 1,177 1,444 1,480 (18.5) (2.4)
Total Consumer Sales $13,507 14,496 14,697 (6.8)% (1.4)
The Over-the-Counter (OTC) franchise sales of $4.0 billion decreased 3.2% as compared to the prior year, which
included 8.1% operational growth and a negative currency impact of 11.3%. Operational growth was primarily driven by
analgesics, upper respiratory, including ZYRTEC®, and digestive health products.
McNEIL-PPC, Inc. (now Johnson & Johnson Consumer Inc.) (McNEIL-PPC) continues to operate under a consent decree,
signed in 2011 with the U.S. Food and Drug Administration (FDA), which governs certain McNeil Consumer Healthcare
manufacturing operations and requires McNEIL-PPC to remediate the facilities it operates in Lancaster, Pennsylvania; Fort
Washington, Pennsylvania; and Las Piedras, Puerto Rico (the Consent Decree). In February 2015, a third-party expert
submitted written certification to the FDA for all three manufacturing sites. Following FDA inspections in 2015, McNEIL-
PPC received notifications from the FDA that all three manufacturing facilities are in conformity with applicable laws and
regulations. Under the Consent Decree, after receiving notice from the FDA of being in compliance with applicable laws
and regulations, each of the three facilities is subject to a five-year audit period by a third-party cGMP expert. Thus, a
third-party expert will continue to reassess the sites at various times for at least five years.
The Skin Care franchise sales of $3.5 billion decreased 6.0% as compared to the prior year, which included 1.3%
operational growth and a negative currency impact of 7.3%. Operational growth was primarily due to sales growth of
NEUTROGENA®and AVEENO®products partially offset by lower sales in China.
The Baby Care franchise sales were $2.0 billion in 2015, a decrease of 8.7% compared to the prior year, which included
1.2% operational growth and a negative currency impact of 9.9%. Operational growth was primarily due to new product
launches partially offset by competition in China.
The Oral Care franchise sales were $1.6 billion in 2015, a decrease of 4.1% as compared to the prior year, which
included 5.2% operational growth and a negative currency impact of 9.3%. Operational growth was driven by increased
sales of LISTERINE®products, attributable to geographical expansion of new products and successful marketing
campaigns.
The Women’s Health franchise sales were $1.2 billion in 2015, a decrease of 7.8% as compared to the prior year, which
included 7.6% operational growth and a negative currency impact of 15.4%. Operational growth outside the U.S. was
driven by new product launches and successful marketing campaigns.
The Wound Care/Other franchise sales were $1.2 billion in 2015, a decrease of 18.5% from 2014, primarily due to the
SPLENDA®and BENECOL®divestitures.
Consumer segment sales in 2014 were $14.5 billion, a decrease of 1.4% from 2013, which included 1.0% operational
growth offset by a negative currency impact of 2.4%. U.S. Consumer segment sales were $5.1 billion, a decrease of
1.3%. International sales were $9.4 billion, a decrease of 1.4%, which included 2.3% operational growth offset by a
negative currency impact of 3.7%.
12 •Johnson & Johnson 2015 Annual Report