(Reuters) – Church & Dwight projected its annual net sales forecast above market estimates after posting upbeat fourth-quarter revenue on Friday, boosted by higher prices and resilient demand for its household and personal-care products. The New Jersey-based company sees 2024 reported net sales to grow between 4% and 5%, versus analysts’ estimates of growth of 3.4% to $6.05 billion.
Over the last two years, consumer goods firms have been hiking product prices to protect profit margins, even as concerns have begun to prop up about the potential impact on consumer spending as pandemic savings dwindle amid slower wage growth.
Average selling prices rose 4%, helping gross margins climb 260 basis points even as Church & Dwight increased its marketing spend to over 15% in a bid to attract more customers.
Higher prices, however, have not deterred customers from Church & Dwight’s products including TheraBreath mouthwash and XTRA liquid detergent, driving volumes up 1.3% in the reported quarter.
CEO Matthew Farrell said the company expected volumes to continue to grow through the year.
Church & Dwight’s upbeat results come in contrast to its peers like Kimberly-Clark and Colgate-Palmolive, which have flagged softer sales volumes in recent weeks.
The company expects full-year adjusted profit to grow between 8% and 10%, excluding the impact of Megalac dairy business exit. Analysts’ on average were expecting profit to increase by 8.2%, according to LSEG data.
The Trojan brand condoms maker said fourth-quarter revenue rose 6.4% to $1.53 billion, beating estimates of $1.51 billion.
Excluding items, the personal care products company earned 65 cents per share, in line with analyst projections.
(Reporting by Granth Vanaik in Bengaluru; Editing by Tasim Zahid)
Comments