Skin care saves the day for consumer segment as Johnson & Johnson posts Q3 results
Overall, reported sales for this segment were up 4.9 percent on the same period last year with worldwide Consumer sales of $3.7bn, with international sales covering for the decline of domestic figures.
Sales in US over-the-counter medicines were significantly impacted by the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, as well as the impact on production volumes related to ongoing efforts to enhance quality and manufacturing systems.
Skin care to the rescue
However, positive contributors to operational results were J&J’s Neutrogena and Dabao skin care brands, as well as international sales of oral care products, and baby care products.
Skin care posted big growth internationally and domestically, charting a 17.9 percent growth with reported sales just short of a billion dollars. Oral care and baby care were the only other categories in the Consumer segment to post any significant growth with 9.9 and 8.3 percent respectively.
The third quarter results are in line with the growth shown from the last as J&J posted consumer sales of $3.8bn, an increase of 4 percent, in the last quarter.
As for the year to date, the Consumer segment is beginning to show growth, with the three aforementioned categories leading the way, each displaying solid single-digit growth.
2011: the year for consistency
It’s not just the Consumer segment either that is keeping consistent with previous quarter results. For the quarter the company reported a sales increase of 6.8 percent to $16bn, mimicking the figures of $16.2.bn and $16.6bn achieved in the first and second quarters of the year.
Operational results increased 2.6 percent and the positive impact of currency was reported as 4.2 percent. Whilst domestic sales for the company as a whole declined 3.7 percent, international sales increased 16.4 percent, reflecting operational growth of 8.3 percent and a positive currency impact of 8.1 percent.
“Our solid results this quarter reflect the success of many of our recently launched products,” said William C. Weldon, chairman and CEO.
“As we near the completion of our 125th year in business, our people continue to deliver new products, innovative pipelines and expand our global presence in ways that position us well to drive long-term growth and meet significant unmet medical and customer needs.”
