Sales: $1.9 billion
Sales: $1.9 billion for household and personal care products. Corporate sales: $2.4 billion. Net income: $195 million.
Key Personnel: James R. Craigie, chairman and chief executive officer; Matthew T. Farrell, chief financial officer.
Major Products: Household—Arm & Hammer Baking Soda, Arm & Hammer Fridge Fresh, Arm & Hammer Clumping Litter, Arm & Hammer Clean Shower, Arm & Hammer Scrub Free, Orange Glo Wood Cleaners, Kaboom Scrub Free! Continuous Toilet Cleaning System, Kaboom Ultra Scrub, Kaboom Shower, Tub & Tile Cleaner, Brillo, Parson’s Ammonia, Cameo. Oral care—Arm & Hammer oral care, Spinbrush, Pepsodent, Aim, Close Up, Pearl Drops, Rigident. Personal care—Arrid, Arm & Hammer Ultramax and Lady’s Choice deodorants. Depilatories—Nair, Nair Wax, Nair Men. Laundry—Arm & Hammer liquid laundry detergent, powder laundry detergents, Fresh ‘n Soft fabric softener sheets and liquid fabric softener, Arm & Hammer Essentials liquid laundry detergent and fabric softener sheets. OxiClean laundry stain remover, OxiClean versatile stain remover, OxiClean baby stain soaker, OxiClean baby stain remover, Xtra liquid laundry detergent.
|Church & Dwight has made the most of its OxiClean acquistion.|
Comments: Corporate sales rose 9% to a record $2.4 billion. Consumer domestic sales were up 9.8% on strong sales of Xtra liquid laundry detergent, Arm & Hammer liquid and powder laundry detergents and Oxiclean. Sales also got a boost from a fourth quarter price increase on A&H and Xtra liquid laundry detergents, oral care products and Oxiclean powder. These gains were partially offset by lower sales of Kaboom household cleaner, certain toothpaste brands and antiperspirants. During the year, Church & Dwight acquired the Del Pharmaceuticals business from Coty for $380 million. The business had sales of $100 million in 2007, with Orajel accounting for 70% of sales.
This year and for the future, Church & Dwight is counting on eight power brands—including Arm & Hammer, Oxiclean, Spinbrush, Nair, Orajel and Xtra—to power growth. These household and personal care brands, along with Trojan condoms and First Response pregnancy tests, account for 80% of the company’s sales.
Unlike many other companies, the strong results continued in the new year for Church & Dwight. For the first quarter of 2009, sales increased 5% to $580.9 million. The increase was primarily driven by the recently acquired businesses from Coty and higher sales of Xtra liquid laundry detergent, Arm & Hammer liquid laundry detergent, Oxiclean laundry additive and Arm & Hammer powder laundry detergent. This was offset by lower sales of household cleaners and certain personal care brands.
Last year, new products added $150 million in sales. To keep the momentum in 2009, Church & Dwight was expected to launch more than 20 products including a new Spinbrush, Arm & Hammer Total 2-in-1 Wet Dryer Cloths and Arm & Hammer Plus Oxiclean.
On the new product front, James R. Craigie, chairman and chief executive officer, commented, “We will continue to introduce a steady pipeline of new and improved products in 2009 to drive solid organic growth. Specifically, we will introduce over 20 new products in 2009. These products will be largely focused on our eight power brands and will have a strong value orientation.”
In discussing its first quarter results, management said the company is on track for the fourth quarter opening of its integrated laundry detergent manufacturing plant and distribution center in York County, PA. Church & Dwight will spend $100 million in 2009 and $20 million in 2010, for a total of $170 million in capital expenditures and cash transition expenses from 2008 to 2010 on the project. The new facility is expected to be a significant contributor to gross margin expansion in 2010. With the opening of the new facility, Church & Dwight will close its North Brunswick, NJ complex.