Sales exceed expectations
Church & Dwight (CHD) reported net sales of $1.1 billion, which came in ahead of analysts’ estimate and increased 4% on a YoY basis. Organic sales handily exceeded management’s expectation and increased 4.3%. Management expected organic sales to grow by 3.0% during the fourth quarter. Improved volumes and higher pricing and mix drove the better-than-expected organic sales.
The company’s peers also impressed investors with their organic sales growth thanks to the higher pricing. Procter & Gamble’s (PG) organic sales rose 4% during the last reported quarter. Meanwhile, Kimberly-Clark’s (KMB) organic sales grew 3% during the fourth quarter. Moreover, Colgate-Palmolive (CL) and Clorox (CLX) also posted higher organic sales.
Church & Dwight’s Consumer Domestic segment’s net sales increased 4.0% driven primarily by the growth in the household and personal care category. The segment’s organic sales also rose 4.0%, reflecting a 2.2% increase in volumes and a 1.8% rise in pricing and mix.
The Consumer International segment’s net sales grew 5.0% driven by benefits from recent acquisitions and the expansion of the export business. Organic sales jumped 9.0%, reflecting stellar growth in volumes. Specialty Products net sales increased 1.5%. Meanwhile, organic sales fell 3.7% as benefits from higher pricing were more than offset by lower volumes.
Management expects net sales to grow by 3.5% in 2019, driven by continued strength in all of its three businesses, new product launches, and higher pricing. As for the first quarter, net and organic sales are projected to grow by 3.5% to 4.0%.