Sales: $2.4 billion for household, personal care and oral care products. Corporate sales: $3.1 billion. Net income: $394 million.
Key Personnel: James R. Craigie, chairman and chief executive officer; Jaquelin J. Brova, executive vice president, global human resources; Mark G. Cornish, executive vice president, global operations; Steven P. Cugine, executive vice president, global new products innovation and president, international consumer products; Patrick de Maynadier, executive vice president, general counsel and secretary; Matthew T. Farrell, executive vice president, finance and chief financial officer; Bruce F. Fleming, executive vice president and chief marketing officer; Adrian J. Huns, executive vice president; Paul A. Siracusa, executive vice president, global research and development; Louis H. Tursi Jr., executive vice president, North America sales.
Major Products: Arm & Hammer and Xtra laundry detergent; OxiClean, Scrub Free, Kaboom and Orange Glo household cleaners; Nair depilatories; Oragel oral analgesics; Closeup and Aim toothpaste.
New Products: OxiClean dish detergent, Arm & Hammer Ultra Power 4x detergent, Arm & Hammer Clean Scentsations, OxiClean White Revive, Arm & Hammer Plus OxiClean; Kaboom Shower Guard; Arm & Hammer Truly Radiant toothpaste and SpinBrush Truly Radiant toothbrushes; Nair for Men Shower Power and Nair Sprays Away.
Comments: Corporate sales rose 9.3% and net income improved 12.8% last year. Church & Dwight executives proudly note that they’ve built a portfolio that can weather any economic storm, as the company’s product lineup is neatly divided between premium products (55% of turnover) and value (45%). During the past decade the company has also increased its international presence, so that in 2013 sales outside the US accounted for 17% of revenues.
In 2013, consumer domestic sales rose nearly 12% due, in part, to higher sales of Arm & Hammer liquid laundry detergent and OxiClean laundry additives. But the gains were partially offset by lower sales of A&H powder laundry detergent, Xtra liquid laundry detergent and SpinBrush battery-operated toothbrushes.
International sales rose 4.5%, but the gain was due primarily to the acquisition of a chewable vitamin line.
Last year, the company moved and consolidated its headquarters in Ewing, NJ to improve efficiencies. The year also marked the first full year that Church & Dwight operated a new plant in Victorville, CA, to more efficiently deliver laundry products to West Coast retailers.
In March, the company inked a deal with Major League Baseball Properties (MLBP). The multi-year, multi-category sponsorship agreement made Arm & Hammer and OxiClean “The Official Laundry Detergent and Stain Remover of MLB.” This marks the largest sponsorship deal for Church & Dwight and the first-of-its kind for MLBP across several categories including fabric, pet and oral care.
“This partnership allows us to combine the power of two great American icons to reach families in a new way,” said CEO James Craigie. “Whether young or old, baseball is a sport inextricably linked with having fun and getting dirty- and no brands can better solve for the getting dirty aspect than Arm & Hammer and OxiClean.”
For the first quarter, sales rose 1.2% to $782 million, as volume gains of 4.4% were partially offset by a 3.2% negative price mix—with couponing and slotting fees accounting for about two-thirds of higher costs. On a product basis, greater demand for Oxiclean liquid detergent were offset by lower sales of Arm & Hammer and Xtra laundry detergents.
To survive and thrive in the highly competitive markets it competes in, Craigie often reminds analysts and shareholders that Church & Dwight ferociously defends its brands with aggressive promotion, a strong acquisition program and attention to total shareholder return.