Sales surpassed estimate
Church & Dwight (CHD) posted better-than-expected sales in the first quarter of 2019. The company’s net sales of $1.0 billion came in ahead of Wall Street’s expectation and rose 3.8% on a YoY (year-over-year) basis thanks to the strong growth in its organic sales.
Church & Dwight’s organic sales rose 4.5% driven by growth in its global consumer products. Its organic sales rose 5.2% in the global consumer products business, reflecting 2.7% growth in volumes and a 2.5% increase in pricing and mix.
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Household and personal care product manufacturers impressed with their organic sales growth rates during their latest quarters. Colgate-Palmolive’s (CL) organic sales rose 3% in the first quarter. Meanwhile, Procter & Gamble’s (PG) organic sales increased 5% during its last-reported quarter. Kimberly-Clark (KMB) registered an increase of 3% in organic sales during the first quarter of 2019. The Clorox Company (CLX) disappointed with its sales performance during its last-reported quarter, but its higher pricing supported its organic sales.
Church & Dwight’s management raised full-year sales outlook on the back of flawless acquisition. Its net sales are now expected to increase by 5%–6%. Previously, CHD’s top line was expected to mark 3.5%–4.0% growth. The acquisition is expected to add 200 basis points to the company’s top line growth.
CHD’s organic sales are projected to mark 3.5% growth in 2019 driven by new product introductions and continued strength in its base business. As for the second quarter, CHD’s top line is expected to mark 4% growth driven by a 3.5% increase in its organic sales.