Church & Dwight Boosts 50% of Prices as Cost Pressures Mount

(Bloomberg) -- Church & Dwight Co. topped earnings and sales estimates last quarter, buoyed by price increases on half its lineup of personal-care and home products.

But the company also said the ongoing disruptions to its supply chain and higher costs for materials and packaging will weigh on profitability. For the fourth quarter, the company forecast adjusted earnings to be 61 cents a share, trailing the average analyst estimate of 69 cents. 

In response to the rising costs, the Ewing, New Jersey-based company is getting even more aggressive, saying it would boost prices on an additional 30% of its items in the first quarter of next year. 

The company expects supply chain disruptions to ease in the first half of 2022 for most of its products, Chief Executive Officer Matthew Farrell said in the earnings statement.

Church & Dwight also posted a solid quarter despite its production being slowed by Hurricane Ida. That limited its ability to keep up with demand. As a result, it cut back on marketing last quarter, particularly household products.

The shares gained 3.1% at 11:21 a.m. Friday. The stock had declined 1.9% this year through Thursday.

©2021 Bloomberg L.P.