Chattem Posts 4Q, Fiscal 2008 Growth

Staple personal care products such as mouth rinse, baby balm and sports creme just might fare well in a questionable economy – as seen at consumer product marketer Chattem, Inc. The company posted positive results for the fiscal fourth quarter and year ended Nov. 30, 2008 and affirmed fiscal 2009 guidance.

“The Company’s growth and momentum continued in fiscal 2008 with strong revenue and earnings growth,” said Zan Guerry, Chattem’s chairman and chief executive officer. “Product innovation and a commitment to our advertising strategy behind our key brands, Gold Bond, ACT, Icy Hot and Cortizone-10, continues to drive our revenues, earnings and cash generation.”

“We expect fiscal 2009 to be another exciting year behind a strong line-up of new product launches, coupled with advertising support to continue the momentum of the business,” Mr. Guerry continued.

Total revenues for fiscal 2008 rose to a record $454.9 million, an increase of 7.4%, compared to 2007. According to the company, revenue growth for the fiscal year was primarily driven by the five brands acquired from Johnson & Johnson on Jan. 2, 2007 – which includes ACT, Cortizone-10, Balmex and more. Net income for the fiscal year increased 11% to $66.3 million.

Total revenues for the fourth quarter of fiscal 2008 jumped 5% to $105.5 million, compared to the prior year quarter. Revenue growth for the quarter was led by strong performances from Gold Bond, Icy Hot, ACT, Aspercreme and Bullfrog, says the company. Net income for the quarter rose 3% to $16.7 million.