Chattem
This article was originally published in The Rose Sheet
Executive Summary
Net sales are expected to fall approximately 4%-6.5% to $78 mil.-$80 mil. from $84.3 mil. for the fiscal second quarter (ended May 31), the company reports. EBITDA for the period should range from $21 mil.-$22 mil., versus $26.3 mil. in the same period last year. The forecasted decline is attributed to continued weakness in Sunsource dietary supplements and increased competition against Ban antiperspirants, namely Unilever's Dove product. Radio and TV ads featuring Chattem's new Ban Naturals will break in mid-July and run throughout the year. The company also will drop FSIs from July-September. Chattem has earmarked $20 mil.-$30 mil. for Ban this year (1"The Rose Sheet" Jan. 31, p. 6)
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Chattem
Net sales declined 4.6% to $79.6 mil. for the second fiscal quarter (ended May 31), while earnings rose 6% to $6.1 mil. For the half, sales slid 2.8% to $142 mil., and earnings rose 2.9% to $9.2 mil. Results were impacted by low sales of Ban antiperspirant. Chattem has earmarked its entire Ban ad spend for the Ban Naturals second half launch and thus aired no ads in the first half. The company also attributed the sales downturn to the poor performance of Sunsource dietary supplements. Chattem earlier had predicted overall sales would fall 4%-6.5% (1"The Rose Sheet" June 19, In Brief). Sales for the remaining brands rose 4.1% for the quarter and 5.5% for the half. Upcoming introductions include Gold Bond Fragrance Free Lotion, which will bow in fiscal third quarter with marketing support in the fourth
Chattem
Net sales declined 4.6% to $79.6 mil. for the second fiscal quarter (ended May 31), while earnings rose 6% to $6.1 mil. For the half, sales slid 2.8% to $142 mil., and earnings rose 2.9% to $9.2 mil. Results were impacted by low sales of Ban antiperspirant. Chattem has earmarked its entire Ban ad spend for the Ban Naturals second half launch and thus aired no ads in the first half. The company also attributed the sales downturn to the poor performance of Sunsource dietary supplements. Chattem earlier had predicted overall sales would fall 4%-6.5% (1"The Rose Sheet" June 19, In Brief). Sales for the remaining brands rose 4.1% for the quarter and 5.5% for the half. Upcoming introductions include Gold Bond Fragrance Free Lotion, which will bow in fiscal third quarter with marketing support in the fourth
Chattem Ban $30 Mil. Ad Spend Includes Natural Antip/Deo Launch
Chattem will back its Ban antiperspirant/deodorant brand with a $20 mil.-$30 mil. advertising spend in 2000, the firm announced during a conference call Jan. 25. A significant portion of the budget will be dedicated to the April 15 launch of Ban Natural.