In this week’s blog, we look at the latest quarterly results of two Top 20 global CHC marketers, starting with Church & Dwight, which reported net sales of US$1.3bn in Q3 2021, up 3.7%. Online sales grew by 2.2% (on top of 102% growth in Q3 2020), accounting for 14.2% of total sales.
- Consumer Domestic net sales were US$998.1mn, up 4.6% driven by household and personal care sales growth and acquisitions. Organic sales increased by 2.8%, owing to higher price and product mix (+6%), partially offset by lower volume (-3.2%). Vitafusion gummy vitamins were among the growth drivers
- Consumer International net sales were US$227.0mn, a 6.3% increase, mainly driven by European organic sales performance (+8.8%), Global Markets Group organic growth (+6.9%) and currency gains. Despite continued lockdowns, organic sales increased by 2.3%, primarily owing to higher volume. Growth was driven by Waterpik oral care products and Sterimar nasal spray in Europe and Sterimar, Femfresh intimate wash, Vitafusion and L’il Critters gummy vitamins in the Global Markets Group
Comment: Reflecting ongoing trends, CEO Matthew Farrell noted during an earnings call that “Vitafusion gummy vitamins saw huge consumption growth in Q3, up 24%. Consumers have made health & wellness a priority. It appears that the new consumers that came into the category are staying, because if we look at the last year, Vitafusion household penetration is up almost 10%.”
As for Prestige Consumer Healthcare, revenues grew by 16.3% (+10.5% on an organic basis) in fiscal Q2 2022 (Jul-Sep 2021) to a record US$276.2mn.
- North America OTC Healthcare sales were US$251.7mn vs US$216.6mn in the comparable quarter. This was driven by a strong performance across a majority of key brands vs their respective categories and increased demand in certain Covid-impacted categories such as motion sickness and travel-related channels
- International OTC Healthcare sales totalled US$24.5mn vs US$20.8mn. The increase related primarily to a rise in consumer activity in Australia, which drove a sharp spike in demand for Hydralyte and other Covid-impacted brands, along with a foreign currency benefit of US$0.5mn
Comment from CEO, Ron Lombardi: Our record Q2 built on the strong results delivered in Q1 as our leading brands and business strategies enabled us to benefit from a higher-than-anticipated rebound in Covid-impacted areas, as well as strong consumer demand. The strong performance is broad-based with market share gains, revenue and earnings growth and is a testament to our focused execution in the current environment. Furthermore, TheraTears [acquired from Akorn on 1st July 2021] added incrementally to our strong results and we were pleased with the quick and seamless integration that is now complete.
Save the Date! We are delighted to announce that we will be heading to Athens on 4-6 May 2022 for our 32nd European CHC Conference & Action Workshop! Contact elizabeth.bernos@NicholasHall.com to reserve your space today!