Church & Dwight Continues Organic Growth, Starts Price Hikes Due To Tariffs
This article was originally published in The Rose Sheet
Third-quarter organic sales jumped 4.7%, ahead of analyst expectations, on volume growth and product mix and pricing. However, due to commodity pressures from trade tariffs, it will raise prices across a third of its portfolio, starting in the current quarter.
You may also be interested in...
CEO says higher revenues on consumer health product sales partly due to higher prices should go to innovation rather than advertising. During Q2 earnings briefing, analysts suggest competitors will boost promotions and hamper C&D’s 4% organic growth outlook for 2019.
Church & Dwight estimates 3.5% organic sales growth in 2019 on innovations including Orajel Toothache Strips as well as organic gummy vitamins and "world’s first flossing toothbrush.” Reporting weaker-than-expected Q$ earnings, it plans to raise prices on more product categories in 2019.
Additional tariffs on Chinese imports of ingredients needed for dietary supplements in addition to active ingredients and excipients used in OTC drugs will increase manufacturers' costs even if they arrange to receive ingredients from firms in the US of other countries. The American Herbal Products Association told USTR that firms impacted by the additional tariff "will be faced with the need to either increase prices and thus risk sales losses, absorb additional costs by reducing profit margins, or discontinue products; each of these options risks economic harm to these companies and job losses to their employees."