Johnson & Johnson: An Overview of the Consumer Division
Johnson & Johnson’s three divisions are: Medical Devices & Diagnostics, Pharmaceuticals and Consumer Products. This article will give a brief overview of the Consumer division.
Products are marketed to the general public and are sold to retail outlets as well as distributors throughout the world.
The following fields are catered for under the consumer business umbrella: baby care, skin & hair care, oral care, nutritionals, pain relief, topical care, women’s health and over the counter medicines.
Large and valuable brand names reside in the above fields. A brief summary is listed as follows:
Skin Care: Aveeno, Clean & Clear, Neatrogena, RoC, Lubriderm, Dabao and Vendome
Oral Care: Listerine and Reach
Wound Care: Band-Aid and Neosporin
Nutritionals: Splenda
Women’s Health: Carefree and Stayfree
Over the Counter Medicines: Tylenol, Sudafed, Zyrtec, Pepcid and Motrin
2010 full year sales for the consumer segment were $14.6bn of which $5.5bn came from the US segment ($9.1bn came from the international segment).
Historic sales per segment are as follows:
There has been a slight fall in total sales for the division over the last few years. The decrease in sales for 2010 from the previous year was blamed on an operational decline but this was partially offset by a positive foreign exchange movement.
Research and development expenses for the segment came to $609m or 4.2% of segment sales compares to total R&D expenses for the company of $6.84bn or 11.1% of sales.
The consumer division has the lowest operating profit as a percentage of segment sales compared to the other divisions. Consumer operating profit came to $2.34bn which accounted for 16.1% of segment sales. Pharmaceuticals had an operating profit of 31.6% of segment sales whereas the Medical division boasted an operating profit of 33.6% of segment sales. Consumer operating profit fell 5.4% year on year and is primarily down to product recalls.
Worldwide the consumer business utilises nearly 7 million square feet of manufacturing facilities out of a total of just below 22 million sq. Feet. Out of the 54 facilities used in the United States only 7 are used by the consumer division.
Production was suspended at the McNeil Consumer Healthcare’s Fort Washington, Pennsylvania facility during Q2, 2010 due to product recalls. Alternate supplies of products should come through in H2, 2011.
Two recent developments from the consumer division are the sale of JNJ’s EPT leading home pregnancy test brand to Insight Pharmaceuticals a Langhorne, PA based company as well as a recall of nearly 668,000 Sudafed packages due to a labelling error. There was an extra ‘not’ found in the directions to take the medicine.
Disclosure: Long JNJ
Johnson & Johnson’s three divisions are: Medical Devices & Diagnostics, Pharmaceuticals and Consumer Products. This article will give a brief overview of the Consumer division.
Products are marketed to the general public and are sold to retail outlets as well as distributors throughout the world.
The following fields are catered for under the consumer business umbrella: baby care, skin & hair care, oral care, nutritionals, pain relief, topical care, women’s health and over the counter medicines.
Large and valuable brand names reside in the above fields. A brief summary is listed as follows:
Skin Care: Aveeno, Clean & Clear, Neatrogena, RoC, Lubriderm, Dabao and Vendome
Oral Care: Listerine and Reach
Wound Care: Band-Aid and Neosporin
Nutritionals: Splenda
Women’s Health: Carefree and Stayfree
Over the Counter Medicines: Tylenol, Sudafed, Zyrtec, Pepcid and Motrin
2010 full year sales for the consumer segment were $14.6bn of which $5.5bn came from the US segment ($9.1bn came from the international segment).
Historic sales per segment are as follows:
Segment | 2010 | 2009 | 2008 |
Sales ( $ban ) | Sales ( $ban ) | Sales ( $ban ) | |
OTC Pharm & Nutritionals | 4.55 | 5.63 | 5.89 |
Skin Care | 3.45 | 3.47 | 3.38 |
Baby Care | 2.21 | 2.11 | 2.21 |
Women’s Health | 1.84 | 1.89 | 1.91 |
Oral Care | 1.53 | 1.57 | 1.62 |
Wound Care & Other | 1.01 | 1.13 | 1.03 |
Total | 14.59 | 15.8 | 16.05 |
There has been a slight fall in total sales for the division over the last few years. The decrease in sales for 2010 from the previous year was blamed on an operational decline but this was partially offset by a positive foreign exchange movement.
Research and development expenses for the segment came to $609m or 4.2% of segment sales compares to total R&D expenses for the company of $6.84bn or 11.1% of sales.
The consumer division has the lowest operating profit as a percentage of segment sales compared to the other divisions. Consumer operating profit came to $2.34bn which accounted for 16.1% of segment sales. Pharmaceuticals had an operating profit of 31.6% of segment sales whereas the Medical division boasted an operating profit of 33.6% of segment sales. Consumer operating profit fell 5.4% year on year and is primarily down to product recalls.
Worldwide the consumer business utilises nearly 7 million square feet of manufacturing facilities out of a total of just below 22 million sq. Feet. Out of the 54 facilities used in the United States only 7 are used by the consumer division.
Production was suspended at the McNeil Consumer Healthcare’s Fort Washington, Pennsylvania facility during Q2, 2010 due to product recalls. Alternate supplies of products should come through in H2, 2011.
Two recent developments from the consumer division are the sale of JNJ’s EPT leading home pregnancy test brand to Insight Pharmaceuticals a Langhorne, PA based company as well as a recall of nearly 668,000 Sudafed packages due to a labelling error. There was an extra ‘not’ found in the directions to take the medicine.
Disclosure: Long JNJ
