Sales: $1.8 billion
Sales:$1.8 billion for household and personal care products. Corporate sales: $2.2 billion. Net income: $169 million.
Key Personnel:James R. Craigie, chairman and chief executive officer; Matthew T. Farrell, executive vice president finance and chief financial officer.
Chief Scientific Officer:Paul A. Siracusa Ph.D, executive vice president, global research & development.
Chief Marketing Officer:Bruce R. Fleming, executive vice president and chief marketing officer.
Major Products:Household—Arm & Hammer baking soda, Arm & Hammer Fridge Fresh, Arm & Hammer Clumping Litter, Arm & Hammer Clean Shower, Arm & Hammer Scrub Free, Orange Glo Wood Cleaners, Kaboom Scrub Free! Continuous Toilet Cleaning System, Kaboom Ultra Scrub, Kaboom Shower, Tub & Tile Cleaner, Brillo, Parson’s Ammonia, Cameo, Lambert Kay Pet Products. Oral care—Arm & Hammer oral care, Spinbrush, Pepsodent, Aim, Close Up, Pearl Drops, Rigident. Personal care—Arrid, Arm & Hammer Ultramax and Lady’s Choice deodorants. Depilatories— Nair, Nair Wax, Nair Men. Laundry—Arm & Hammer liquid laundry detergent, powder laundry detergents, Fresh ‘n Soft fabric softener sheets and liquid fabric softener, Arm & Hammer Essentials liquid laundry detergent and fabric softener sheets. OxiClean laundry stain remover, OxiClean versatile stain remover, OxiClean baby stain soaker, OxiClean baby stain remover, Xtra liquid laundry detergent.
Household cleaners—Arm & Hammer Odor Alert clumping litter, Arm & Hammer Carpet & Room Odor Eliminator Tough Odor, Kaboom Scrub Free! toilet cleaning system, Arm & Hammer Essentials cleaners and Essentials Natural Clumping Litter. Oral care—Spinbrush Swirl. Oral care—Arm & Hammer Age Defying toothpaste, Arm & Hammer Whitening Booster, Orajel (acquisition). Personal care—Nair Shower Power creams for body, Nair Lasting Results gel cream. Laundry—OxiClean Spray-A-Way instant stain remover, Arm & Hammer Plus the Power of OxiClean liquid detergent.
Corporate sales rose 14% and net income was up 22%. The increase in sales was attributed to the business acquired in the OGI acquisition, which occurred in August 2006, and the Spinbrush toothbrush business, which collectively accounted for approximately 8% of the increase.
For the first quarter of 2008, corporate sales rose 7.5% to nearly $553 million and net income was up 23% to $56.2 million.
“We are very pleased with our solid first quarter results, which reflected strong organic revenue growth and improved gross margin,” said James R. Craigie, chairman, president and chief executive officer. “The organic revenue growth was driven by new products, increased marketing spending and pricing actions. The improved gross margin reflects aggressive cost reduction programs, pricing and acquisition synergies that more than offset significantly higher commodity and energy costs."
New Product Activity
As it adds new businesses, Church & Dwight remains focused on new product development. In oral and skin care, the company expanded its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips.
Also new is SpinBrush Swirl, a value-oriented product which is designed to encourage manual brush users to “trade up” into the battery-powered toothbrush category. Two new oral care products were launched under the Arm & Hammer name: Arm & Hammer Age Defying toothpaste, to protect and rebuild enamel; and Arm & Hammer Whitening Booster, an additive used with any toothpaste for convenient whitening.
In household products, the company expanded the distribution of its recently launched Arm & Hammer Laundry Detergent with OxiClean stain fighters in both powdered and liquid form.
Church & Dwight also introduced Arm & Hammer Essentials Free liquid laundry detergent made from environmentally-sensible plant-based soaps to address the needs of consumers with sensitive skin.
A Del of a Purchase
Church & Dwight continues to expand its portfolio of household and personal care products. In April, the company agreed to acquire the Del Pharmaceuticals business from Coty for $380 million. Del Pharmaceuticals had sales of $100 million last year, with Orajel oral analgesic accounting for 70% of sales.
“Orajel is a great addition to our existing portfolio and provides access to a fast-growing segment of the attractive premium oral care category,” said Mr. Craigie. “Orajel also brings to our company a powerful franchise that has developed great consumer loyalty.”
According to Mr. Craigie, the Orajel acquisition is consistent with Church & Dwight’s strategy of adding No. 1 or 2 brands in high growth areas with gross margins that are accretive to the company.
Last month, Church & Dwight Co. said it would construct an integrated laundry detergent manufacturing plant and distribution center in York County, PA. Construction will begin in September and the site is scheduled to be operational by the end of 2009. In conjunction with the opening of the new facility, the company will close its existing laundry detergent manufacturing plant and distribution buildings in North Brunswick, NJ.
“Our strategically important fabric care business has grown substantially over the past 10 years, both organically and through acquisitions such as the Orange Glo International, Inc. brands acquired in 2006,” said Mr. Craigie. “This new site will allow us to continue to grow our fabric care business in a facility that can handle the current and anticipated additional base volume growth for our core businesses, support future potential acquisitions and position our business to be among the industry leaders in low-cost production and distribution in the future. Since our fabric care business is our largest business, this initiative will play a key role in helping to drive our long-term goals for revenue growth and gross margin expansion.”
According to Mr. Craigie, the new 232-acre site has 1.1 million sq. ft. of building space with the ability to expand to meet future business needs. It is designed to significantly reduce production and distribution center costs, and is expected to support the company’s annual goal of expanding gross margin by approximately 100 basis points.