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OxiClean maker Church & Dwight expects downbeat fourth-quarter on slowing demand
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OxiClean maker Church & Dwight expects downbeat fourth-quarter on slowing demand
Nov 4, 2024 12:03 PM

Nov 1 (Reuters) - Church & Dwight ( CHD ) 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 ( CHD ) and Procter

& Gamble ( PG ) are now seeing pressure on volumes from the

price increases undertaken for nearly two years to offset rising

costs.

Church & Dwight ( CHD ) 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 ( CHD ) 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 ( CHD ) 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.

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