Chattem
This article was originally published in The Rose Sheet
Executive Summary
Net sales are expected to fall approximately 4%-6.5% to $78 mil.-$80 mil. from $84.3 mil. for the fiscal second quarter (ended May 31), the company reports. EBITDA for the period should range from $21 mil.-$22 mil., versus $26.3 mil. in the same period last year. The forecasted decline is attributed to continued weakness in Sunsource dietary supplements and increased competition against Ban antiperspirants, namely Unilever's Dove product. Radio and TV ads featuring Chattem's new Ban Naturals will break in mid-July and run throughout the year. The company also will drop FSIs from July-September. Chattem has earmarked $20 mil.-$30 mil. for Ban this year (1"The Rose Sheet" Jan. 31, p. 6)