Johnson & Johnson - Index

Johnson & Johnson - report - Index

U.S. and
International Sales
for 10 Years
(in billions of dollars)
U.S.
International
The five-year compound annual growth rates for worldwide,
U.S. and international sales were 11.0%, 7.6% and 15.7%,
respectively. The ten-year compound annual growth rates for
worldwide, U.S. and international sales were 10.5%, 10.6%
and 10.3%, respectively.
Sales by
Geographic
Region
(in billions of dollars)
U.S.
Europe
Western Hemisphere
excluding U.S.
Asia Pacific, Africa
70
60
50
40
30
20
10
0 7 00 01 02 03 04 05 06 07
70
60
50
40
30
20
10
0
05 06 07
All international geographic regions experienced sales
growth during 2007, consisting of 22.4% in Europe, 32.2% in the
Western Hemisphere (excluding the U.S.) and 15.3% in the Asia-
Pacific, Africa regions. These sales increases include the impact
of currency fluctuations between the U.S. dollar and foreign
currencies, which had positive impacts of 9.2% in Europe, 6.7%
in the Western Hemisphere (excluding the U.S.) and 3.5% in the
Asia-Pacific, Africa region.
The acquisition of Pfizer Inc.’s Consumer Healthcare business,
net of the related divestitures, increased both total sales
growth and operational growth by 7.4%.
In 2007, 2006 and 2005, the Company did not have a
customer that represented 10% or more of total revenues.
Major Consumer Franchise Sales*:
Sales by
Segment
(in billions of dollars)
Consumer
Pharmaceutical
Medical Devices
and Diagnostics
70
60
50
40
30
20
10
0 05 06 07
Analysis of Sales by Business
Segments
CONSUMER SEGMENT
Consumer segment sales in 2007 were $14.5 billion, an increase
of 48.3%, over 2006 with 44.2% of this change due to operational
growth and the remaining 4.1% due to positive currency
fluctuations. U.S. Consumer segment sales were $6.4 billion,
an increase of 40.1%. International sales were $8.1 billion, an
increase of 55.5%, with 47.8% as a result of operations and
7.7% due to currency fluctuations over 2006.
The acquisition of Pfizer Inc.’s Consumer Healthcare business,
net of the related divestitures, increased both total sales
growth and operational growth for the total Consumer segment
by 40.3%.
The Over-the-Counter (OTC) Pharmaceuticals and Nutritionals
franchise sales were $5.1 billion, an increase of 87.5%
from 2006. This was attributable to new products from acquisitions,
as well as strong sales growth achieved by analgesics and
SPLENDA® products. The positive impact on OTC Pharmaceuticals
and Nutritionals total sales growth due to newly acquired
brands from Pfizer Inc. was 80.0% for the fiscal year 2007.
In 2007, the Company announced a voluntary withdrawal of
certain infant cough and cold products from the market. When
used as directed, these medicines have been generally recognized
as safe and effective. However, an assessment of available
data on the use of pediatric cough and cold medicines has identified
rare instances of misuse leading to overdose, particularly in
infants under two years of age. As well, these products, along
with children’s cough and cold products generally, were the
subject of a recent U.S. Food and Drug Administration (FDA)
Nonprescription Drug Advisory Committee hearing, which
recommended to the FDA certain changes in the marketing and
% Change
_____________________
(Dollars in Millions) 2007 2006 2005 ’07 vs. ’06 ’06 vs. ’05
OTC Pharmaceuticals & Nutritionals $ 5,142 2,742 2,678 87.5% 2.4
Skin Care 3,051 2,633 2,401 15.9 9.7
Baby Care 1,982 1,740 1,561 13.9 11.5
Women’s Health 1,806 1,666 1,568 8.4 6.3
Oral Care 1,488 406 319 266.5 27.3
Other 1,024 587 569 74.4 3.2
Total $14,493 9,774 9,096 48.3% 7.5
* Prior year amounts have been reclassified to conform with current presentation.
MANAGEMENT’S DISCUSSION AND ANALY SIS OF RESULT S OF OPERATIONS AND FINANCIAL CONDITION 37