FOREX Hits J&J Consumer Healthcare

A strong US dollar continues to batter results for multinationals. Johnson & Johnson’s (JNJ) Consumer Healthcare segment grew 2.3% at constant exchange rates, to nearly $3.5 billion in the second quarter. However,  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.

By product segment, J&J'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 about 15.5% of segment sales for 2Q15. 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 about 11% of segment sales for 2Q15.Over-the-counter franchise. The OTC 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 about 28% of segment sales for 2Q15. Skin care franchise sales fell less than 1% at constant exchange rates, as new product sales were offset by the timing of the US trade inventory build. Skin care contributed about 25.7% of total segment sales for 2Q15.