EWING, N.J.--(BUSINESS WIRE)--
Church & Dwight Co., Inc. (CHD) today announced plans to expand its gummy vitamin production capacity, through the addition of a new production line to be constructed at its manufacturing facility in Pennsylvania. The Company will continue to manufacture gummy vitamins at its two facilities in the State of Washington. Construction will begin in January 2014 and the line is scheduled to be operational in the first quarter of 2015.
“The gummy vitamin business is strategically important to Church & Dwight and is expected to be a significant contributor to the future growth of sales, earnings, and cash flows,” said James R. Craigie, Chairman and Chief Executive Officer. “Our gummy vitamin sales are growing at a 20% rate to approximately $300 million in annual net sales in 2013. We expect double-digit gummy vitamin sales growth in 2014. We believe the future prospects of the gummy vitamin category are strong as more adults switch from traditional vitamin pills to gummy vitamins. This investment will expand our production capacity by 75% and will help to drive our long-term goals for revenue and earnings growth.”
The Company expects to invest approximately $55 million in capital expenditures to construct the new production line, which is expected to employ approximately 180 people. For 2014, total capital expenditures are projected to be $85 million, of which approximately $40 million relates to the vitamin investment. As announced today by the Commonwealth of Pennsylvania, the Company has received an economic development assistance package from the Commonwealth in connection with the investment, consisting of grants, tax credits, and training funds.
Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products under the ARM & HAMMER brand name and other well-known trademarks.
This release contains forward-looking statements relating to, among others, the timing and the cost of the proposed new manufacturing line in Pennsylvania, the expected employment resulting from the new production line, the growth of the gummy vitamin category, the switching of adults from traditional vitamin pills to gummy vitamins, and the future growth of the Company’s gummy vitamin business. These statements represent the intentions, plans, expectations and beliefs of Church & Dwight, and are subject to risks, uncertainties and other factors, many of which are outside the Company's control and could cause actual results to differ materially from such forward-looking statements, including but not limited to the risks associated with the successful consummation of the project contemplated hereby. The uncertainties include assumptions as to market growth and consumer demand (including the effect of political and economic events on consumer demand), and raw material and energy prices. Other factors, which could materially affect the results, include the outcome of contingencies, including litigation, regulatory matters and environmental matters, and the acquisition or divestiture of assets. For a description of additional factors that could cause actual results to differ materially from these forward looking statements, please see the Company’s quarterly and annual reports filed with the SEC, including the information in Item 1A (“Risk Factors”) in the Company’s annual report on Form 10-K.
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Matt Farrell, 609-806-1200
EVP & CFO
Rick Dierker, 609-806-1200
VP Corporate Finance