Church & Dwight Reports Q3 Figures

Church & Dwight Co., Inc. said third quarter 2016 reported net sales increased $8.9 million or 1.0% to $870.7 million driven by global consumer net sales growth of 2.2%. The global consumer organic sales grew 2.5% driven by 3.0% volume growth.  Church & Dwight’s smaller specialty products business declined 11.3%.  Total organic sales growth of 1.2% was driven by volume growth of 1.7% partially offset by 0.5% from unfavorable product mix and pricing.
 
“We are pleased with our consumer organic sales and the company’s earnings growth as our business overcame continued headwinds faced by our specialty products business. Our continued gross margin expansion in the third quarter provided us flexibility with our marketing and promotional investments to protect and grow our brand equities,” said Matthew T. Farrell, president and CEO.
 
C&D’s consumer domestic segment reported net sales for the quarter rose 1.3% to $664.8 million. Organic sales increased by 0.8% reflecting increased couponing in the quarter, timing of promotions and a minor product recall. Volume growth contributed 2.1% to organic sales partially offset by a decrease of 1.3% attributable to product mix and pricing. Brand growth was primarily driven by Arm & Hammer and Oxiclean detergent, Batiste dry shampoo and Oxiclean additives while partially offset by a decline in First Response pregnancy test kits and Xtra laundry detergent.
 
C&D said Arm & Hammer unit dose laundry detergent had its highest quarterly category consumption growth nearly doubling the category growth for the second consecutive quarter while also increasing share. Product sales through online retailers continues to be strong. In particular, online vitamin and litter sales more than doubled versus last year. Four of the ten powerbrands gained share in measured channels in the quarter, according to the company.
 
The firm’s consumer international segment's reported net sales were $133.8 million, a $9.1 million or 7.3% increase. Organic sales increased by 12.1%, driven largely by broad based household and personal care sales in the export business, Canada, Europe and Mexico. Volume increased 8.3%, while favorable product mix and pricing contributed 3.8%.
 
“Innovation is the key to driving both improved category and share growth and continues to be a big driver of our success. We launched innovative new products in 2016 while continuing to support prior year launches,” said Farrell.
 
Farrell said that 2016 new product launches are performing well including a new Arm & Hammer cat litter, its new beauty line of adult vitamins under the Vitafusion brand, and new variants of the Batiste dry shampoo. In addition, he said Oxiclean liquid laundry detergent “is gaining traction behind strategic promotional support and hit our highest share since launch.”