OxiClean maker Church & Dwight expects downbeat fourth-quarter on slowing demand

Church & Dwight

01/11/2024 12:10

Nov 1 (Reuters) - Church & Dwight  CHD.N  forecast
fourth-quarter sales and profit below Wall Street expectations
on Friday, as repeated price hikes on the company's household
products pushed customers into buying fewer name brands and look
for cheaper alternatives.
    Consumer goods companies such as Church & Dwight and Procter
& Gamble   PG.N  are now seeing pressure on volumes from the
price increases undertaken for nearly two years to offset rising
costs.
    Church & Dwight in an attempt to regain customers is now
investing in a slew of launches in the laundry and personal care
categories with Arm & Hammer's deep clean detergent and Hero's
Dissolve Away Daily Cleansing Balm.
    This helped drive volumes up by 3.1% this quarter, but came
lower than the 3.5% growth in the prior quarter.
    Third-quarter average selling prices at Church & Dwight rose
1.2%.
    "While US consumption in our categories improved slightly in
September and October, we remain cautious regarding the US
consumer and category growth rates for Q4,' CEO Matthew Farrell
said.
    The company expects fourth-quarter revenue to rise about
1.5% to 2.5%, below analysts' estimates of a 2.97% rise,
according to data compiled by LSEG.
    Church & Dwight also forecast adjusted profit per share of
76 cents, lower than estimates of 86 cents.
    The household products maker's third-quarter revenue rose
3.8% to $1.51 billion, slightly beating expectations of $1.50
billion. Excluding items, it earned 79 cents per share, beating
estimates of 68 cents.
    Shares of the New Jersey-based company marginally rose in
premarket trade.

 (Reporting by Neil J Kanatt and Ananya Mariam Rajesh in
Bengaluru; Editing by Vijay Kishore)
 ((Neil.JKanatt@thomsonreuters.com;))