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IN THE NEWS
Church & Dwight Cleans Up in Full Year, 4Q Report
2009-02-05 | 07:56
Laundry business on the rise, says company CEO
Church & Dwight Co., Inc. posted a full-year 2008 sales increase of 9.1% to $2.4 billion. For the fourth quarter, net income jumped 4% to $44.2 million while net sales increased 11% to $644.9 million.
James R. Craigie, company chairman and chief executive officer, commented, “We are very proud of the business results and strategic initiatives that we accomplished in 2008. We delivered solid organic sales growth, increased gross margin and generated record free cash flow. In addition, we acquired the net assets of the Del Pharmaceuticals, Inc. over-the-counter businesses from Coty, Inc., began the construction of a new integrated laundry detergent manufacturing plant and distribution center in York County, Pennsylvania, and completed the roll-out of concentrated liquid laundry detergent.”
Consumer domestic sales in the fourth quarter were $477.7 million, an 18% increase over the prior period sales. The fourth quarter included sales for the recently acquired businesses from Coty. Sales of Xtra liquid laundry detergent, Arm & Hammer liquid laundry detergent and powder laundry detergent were all significantly higher than last year’s fourth quarter, says the report. These increases were offset partially by lower sales of Kaboom and other household cleaners. However, consumer international fourth quarter sales of $95.1 million decreased 7% compared to the prior year’s fourth quarter sales. Operating income increased 40% to $80.1 million in the fourth quarter as compared to the prior year.
The company implemented several price increases in the United States during the fourth quarter.
With regard to 2009, Mr. Craigie said, “While we were able to deliver record performance in 2008, there is a great deal of uncertainty regarding the economic environment in 2009. We are prudently planning for further deterioration in consumer spending and we expect that this will impact some of our categories. These market conditions are being exacerbated by actions by some retailers to increase shelf space in support of their private label brands. Accordingly, we are projecting organic revenue growth to be approximately 2% in 2009.”
James R. Craigie, company chairman and chief executive officer, commented, “We are very proud of the business results and strategic initiatives that we accomplished in 2008. We delivered solid organic sales growth, increased gross margin and generated record free cash flow. In addition, we acquired the net assets of the Del Pharmaceuticals, Inc. over-the-counter businesses from Coty, Inc., began the construction of a new integrated laundry detergent manufacturing plant and distribution center in York County, Pennsylvania, and completed the roll-out of concentrated liquid laundry detergent.”
Consumer domestic sales in the fourth quarter were $477.7 million, an 18% increase over the prior period sales. The fourth quarter included sales for the recently acquired businesses from Coty. Sales of Xtra liquid laundry detergent, Arm & Hammer liquid laundry detergent and powder laundry detergent were all significantly higher than last year’s fourth quarter, says the report. These increases were offset partially by lower sales of Kaboom and other household cleaners. However, consumer international fourth quarter sales of $95.1 million decreased 7% compared to the prior year’s fourth quarter sales. Operating income increased 40% to $80.1 million in the fourth quarter as compared to the prior year.
The company implemented several price increases in the United States during the fourth quarter.
With regard to 2009, Mr. Craigie said, “While we were able to deliver record performance in 2008, there is a great deal of uncertainty regarding the economic environment in 2009. We are prudently planning for further deterioration in consumer spending and we expect that this will impact some of our categories. These market conditions are being exacerbated by actions by some retailers to increase shelf space in support of their private label brands. Accordingly, we are projecting organic revenue growth to be approximately 2% in 2009.”
