Chattem reports four-week 10 percent sales lift

CHATTANOOGA, Tenn. Chattem on Thursday reported a lift across its over-the-counter brands sales of 10 percent for the four weeks ended Oct. 4, citing data from ACNielsen, excluding the recalled Icy Hot Heat Therapy and the discontinued Icy Hot Pro-Therapy.

“The momentum of our business has continued as expected behind our key brands such as ACT, Gold Bond and Icy Hot,” commented Zan Guerry, chairman and chief executive officer of Chattem.

That 10 percent lift over a four-week period represents an acceleration in the rate of growth for retail sales compared with the 13-week period ended Oct. 4, in which comparable retail sales rose almost 8 percent, Chattem stated.

The year-over-year increase in retail sales was led by ACT, which took over third place in the mouthwash category ahead of Scope based on ACNielsen data for the most recent four- and 13-week periods, which grew by 33 percent and 28 percent over the respective periods. Sales of Gold Bond were up 23 percent and 13 percent, respectively, and Icy Hot 11 percent and 13 percent, respectively.

“In this difficult economic environment, and at a time in which concerns regarding negative consumer sentiment and spending clearly exist, we are pleased with the performance of our brands,” Guerry said. “For fiscal 2009, our exciting lineup of new products is expected to continue our revenue growth, fuel our earnings momentum and result in strong cash flow.”