OxiClean maker Church & Dwight forecasts tepid annual sales on muted demand

Reuters
31 Jan
OxiClean maker Church & Dwight forecasts tepid annual sales on muted demand

Jan 31 (Reuters) - Church & Dwight CHD.N forecast full-year sales below Wall Street expectations on Friday, as cost-conscious consumers continue to hunt for deals on household products such as detergent and mouthwash.

Still-high inflation has pinched consumer budgets, pushing them to seek more discounts and opt for cheaper private-label brands for daily essentials.

"The sales outlook reflects a continued cautious view of the U.S. consumer as inflationary pressures are unchanged and interest rates remain high," CEO Matthew Farrell said in a statement.

Net sales for 2025 are seen growing between 2.5% and 3.5%, below analysts' expectations of about 3.6% growth, according to data compiled by LSEG. The company achieved a 4.1% growth in 2024.

The New Jersey-based company also expects full-year adjusted profit growth of between 7% and 8%, compared with analysts' estimates of about 8.5% growth.

However, the Arm & Hammer detergent maker beat fourth-quarter sales estimates, driven by promotions and new product launches.

The sales beat mirror those of peers including Kimberly-Clark KMB.N and Procter & Gamble PG.N which topped estimates on demand recovery in the U.S. and international markets in the latest quarter.

The household products maker's revenue rose 3.5% to $1.58 billion for the fourth quarter ended Dec. 31, compared with analysts' estimates of $1.56 billion.

On an adjusted basis, the company earned 77 cents per share, in line with analyst projections.

Shares of the Trojan condom maker were flat in premarket trade, after falling about 37% in 2024.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)

((Neil.JKanatt@thomsonreuters.com;))

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