Analyst Note| Erin Lash, CFA |
No-moat Church & Dwight rode coronavirus essential fare tailwinds through the third quarter, posting 9.9% organic sales growth, with 10.2% attributable to higher volumes slightly offset by a 0.3% contraction in pricing and unfavorable product mix. Consumers’ sustained emphasis on health, wellness, and sanitation disproportionately benefited the vitamin business (about 33% of the quarter’s sales growth) and laundry detergent (10% of sales growth). Along with cat litter, these categories contributed to 10.7% domestic organic sales growth (three quarters of its total). But demand outpaced capacity, leading to more use of expensive contract manufacturers.