04.29.22
First quarter net sales for Church & Dwight Co., Inc. grew 4.7% to $1,297.2 million, company officials reported today.
The company continues to experience strong consumer demand for many of its products. Organic sales grew 2.7% driven by positive product mix and pricing of 7.8% offset by a volume decline of 5.1%, which reflects the impact of continued supply chain disruption and pricing elasticities, according to the company.
“Even with our ongoing supply chain challenges, our brands once again experienced strong consumption in Q1 2022,” said CEO Matthew Farrell. “In the US, we grew consumption in 11 of the 17 categories in which we compete. Seven of our brands experienced double-digit consumption growth including Arm & Hammer Scent Boosters, Arm & Hammer Baking Soda, Arm & Hammer Clumping Litter, Batiste dry shampoo, Waterpik Water Flossers, Zicam zinc supplements and Therabreath mouthwash. This demonstrates the strength of our brands as we gained share on 7 of the 14 power brands.”
The acquisitions of Zicam and Therabreath continue to be successful, with double-digit consumption growth, increasing distribution and gaining share. Therabreath will be fully integrated by year’s end.
Church & Dwight’s international business had flat organic sales in the first quarter. Broader supply chain disruption suppressed consumption across several countries and laundry portfolio decisions reduced sales in Canada, according to the company. Organic sales grew 9% for the specialty products business prompted by strength in the animal and food production segment.
The company also reported significant inflation in Q1, having seen additional pressures related to rising oil and diesel prices. Going forward, the company anticipates input and transportation costs to remain elevated with the expectation of additional $85 million of cost increases in 2022 versus prior expectations.
Over the last year, the company raised prices on 80% of its global portfolio of brands. In addition to pricing, the company is pursuing additional measures to offset these higher-than-expected costs through productivity and pack size changes. For instance, the company concentrated its laundry portfolio by approximately 10%-- a practice that is beneficial for consumers, retailers and the environment.
Household and personal care sales growth were the main drivers in consumer domestic net sales, which were $995.1 million, a $52.7 million or 5.6% increase versus prior year. Organic sales increased 2.7% due to price and product mix (+8.7%), offset by volume (-6.0%). Growth in the beauty and personal care categories was led by Zicam zinc supplements, Oxiclean Versatile Stain Remover, Batiste dry shampoo, and Arm & Hammer Liquid Detergent, offset by declines in Flawless and Xtra liquid detergent.
Consumer international net sales were $214.6 million, a $1.8 million or 0.8% decrease. Foreign currency exchange rates negatively impacted sales by -1.9%. Organic sales increased 0.3% due to higher pricing/mix (+3.9%) offset by volume (-3.6%). Q1 organic sales were primarily driven by Sterimar, Batiste, Oxiclean and VMS in the Global Markets Group business. Organic sales growth was negatively impacted by international supply chain issues and laundry portfolio decisions in Canada.