Trojan Condom Maker Cautions About Potential Recession Risk

04/28/2022

1 minute read

2022.04.28 16:52

(Bloomberg) — The maker of Arm & Hammer baking soda and Trojan condoms cautioned about a possible recession in its first-quarter earnings report.

Church & Dwight (NYSE:CHD) Co. told investors Thursday that it’s “well positioned for a potential recessionary environment given that 40% of our portfolio is considered value products.” The company has raised prices on 80% of its products over the past year and plans more price hikes for fabric care and cat litter in July.

So far the price hikes haven’t been enough to stem rapidly rising costs. Church & Dwight said it would incur an additional $85 million in expenses for 2022 primarily due to higher oil and transportation prices, bringing its full-year inflation forecast to $240 million. That will result in earnings per share growth of 4%, at the low end of the company’s prior forecast.

“We expect to experience higher inflation at a faster rate than our price increases take effect,” Chief Executive Officer Matthew Farrell said in a statement. The company also plans to combat rising costs with productivity initiatives and changes in product pack sizes.

Shares of Church & Dwight declined 3.9% at 8:10 a.m. in New York in early morning trading. The stock had risen 23% in the 12 months through Wednesday’s close, while the S&P 500 Index was little changed over that time.

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04/28/2022

1 minute read