Johnson and Johnson 2014 Annual Report Download - page 14

Analysis of Sales by Business Segments
Consumer Segment
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%.
Major Consumer Franchise Sales:
% Change
(Dollars in Millions) 2014 2013 2012 ’14 vs. ’13 ’13 vs. ’12
OTC $4,106 4,028 3,766 1.9% 7.0
Skin Care 3,758 3,704 3,618 1.5 2.4
Baby Care 2,239 2,295 2,254 (2.4) 1.8
Oral Care 1,647 1,622 1,624 1.5 (0.1)
Wound Care/Other 1,444 1,480 1,560 (2.4) (5.1)
Women’s Health 1,302 1,568 1,625 (17.0) (3.5)
Total Consumer Sales $14,496 14,697 14,447 (1.4)% 1.7
The Over-the-Counter (OTC) franchise achieved sales of $4.1 billion, an increase of 1.9% from 2013. Strong U.S. sales
growth of 5.5% was driven by analgesics and upper respiratory products, primarily due to continued progress in returning
a supply of products to the marketplace.
McNEIL-PPC, Inc. 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 (the Consent
Decree). The Consent Decree requires McNEIL-PPC to remediate the facilities it operates in Lancaster, Pennsylvania, Fort
Washington, Pennsylvania, and Las Piedras, Puerto Rico. The Fort Washington facility was voluntarily shut down in
April 2010, however, many products previously made in Fort Washington have been transferred to other manufacturing
sites and successfully reintroduced to the market. The Lancaster and Las Piedras facilities continue to manufacture and
distribute drugs with third-party oversight. Third-party oversight will cease once the FDA has determined that the facilities
appear to be in compliance with applicable law. In February 2015, the third-party overseer submitted written certification
to the FDA for all three manufacturing sites. The timeline for completion of any FDA inspection is within the FDA’s
discretion.
The Skin Care franchise achieved sales of $3.8 billion, an increase of 1.5% as compared to the prior year, primarily due to
strong results from the AVEENO®, NEUTROGENA®, and DABAO™ product lines. The Baby Care franchise sales were
$2.2 billion in 2014, a decrease of 2.4% from 2013. Sales growth in Latin America and Asia Pacific was offset by the
impact of negative currency in all the regions outside the U.S. The Oral Care franchise sales were $1.6 billion, an increase
of 1.5% as compared to the prior year. The growth was driven by increased sales of LISTERINE®products, as a result of
new product launches and successful marketing campaigns. The Wound Care/Other franchise sales were $1.4 billion in
2014, a decrease of 2.4% from 2013, primarily due to lower sales of nutritionals outside the U.S. The Women’s Health
franchise sales were $1.3 billion, a decrease of 17.0% primarily due to the divestiture of women’s sanitary protection
products in the U.S., Canada and Caribbean, which was completed in the fiscal fourth quarter of 2013.
Consumer segment sales in 2013 were $14.7 billion, an increase of 1.7% from 2012, which included 2.8% operational
growth and a negative currency impact of 1.1%. U.S. Consumer segment sales were $5.2 billion, an increase of 2.3%.
International sales were $9.5 billion, an increase of 1.4%, which included 3.1% operational growth and a negative
currency impact of 1.7%.
4•Johnson & Johnson 2014 Annual Report