Church & Dwight Updates on COVID-19 Outbreak

Church & Dwight Co., Inc. announced measures it has taken to promote the safety of its employees, maintain its product supply to consumers and ensure the continuity of the business in response to the COVID-19 pandemic.
 
The company has taken actions to promote the safety of employees by enhancing operating protocols at all its global locations in compliance with public health requirements, recommendations and guidelines. These precautions include working from home where practical, temperature checking employees upon arriving at work locations, social distancing, restricting access to sites, flexible sick pay practices, frequent sanitization of work areas, and restrictions on business travel. A global response team, including members of senior management, was established and is in constant contact with local site leaders, so the Company can react quickly and appropriately.
 
All the company’s manufacturing facilities and distribution centers currently remain open and continue to operate. Various state and local governments in the US. and other jurisdictions have required cessation of non-essential activities. Substantially all of the company’s products are considered essential under applicable governmental requirements and guidance, including the Department of Homeland Security’s March 19, 2020 Guidance on the Essential Critical Infrastructure Workforce.
 
Church & Dwight understands the need for its products now more than ever. In March, the company is experiencing a significant increase in consumer demand for many of its products, including Vitafusion gummy vitamins, Simply Saline and Sterimar nasal hygiene products, A&H baking soda, A&H and Xtra laundry detergent, A&H cat litter and Kaboom bathroom cleaners. The company expects the surge in consumer demand to continue in the second quarter.
 
The Ccmpany has taken steps to increase short term manufacturing capacity for its cleaning products (including laundry detergent, baking soda, and cleaners) and health care products (including vitamins and nasal hygiene) and is working closely with its suppliers and retail partners to ensure sustained supply to keep pace with increased demand.
 
Future restrictions on business operations or other developments related to the COVID-19 pandemic could potentially result in significant disruption to its business, the firm said. As a result, out of an abundance of caution, C&D said has drawn $825 million of its $1 billion revolving credit facility and will hold the cash on its balance sheet for the foreseeable future. Cash on hand at March 31, 2020 is expected to be approximately $1 billion.