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Mar 31, 2022
Church & Dwight Q1 2022 Earnings Report
Church & Dwight's Q1 2022 performance was driven by strong consumer demand and pricing actions, offset by supply chain disruptions and volume decline.
Key Takeaways
Church & Dwight reported a 4.7% increase in net sales to $1,297.2 million, with organic sales growing by 2.7%. EPS was $0.83, flat compared to prior year adjusted EPS. The company is experiencing significant inflation and expects additional cost increases in 2022.
Net sales increased by 4.7%, with domestic sales up 5.6%, international sales down 0.8%, and specialty products up 9.2%.
Organic sales grew by 2.7%, driven by positive product mix and pricing of 7.8%, offset by a volume decline of -5.1%.
EPS was $0.83, flat versus prior year adjusted EPS, exceeding the Company’s outlook of $0.75.
The company expects full year reported sales growth of approximately 5% to 8% and organic sales growth of approximately 3% to 6%.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Church & Dwight Revenue by Geographic Location
Revenue by Segment
Household Products Revenue
CapyFin.comPersonal Care Products Revenue
CapyFin.comConsumer International Revenue
CapyFin.comSpecialty Products Division Revenue
CapyFin.comRevenue by Geographic Location
Consumer Domestic Revenue
CapyFin.com Forward Guidance
The company expects full year 2022 reported sales growth to be approximately 5% to 8% and organic sales growth to be approximately 3% to 6%. EPS to be at 4%, the low end of our 4-8% range. For Q2, we expect reported sales growth of approximately 5 to 6%, organic sales growth of approximately 3 to 4%¹, and gross margin contraction of 200 bps. As a result we expect EPS of $0.70 per share, an 8% decrease from last year’s adjusted Q2 EPS.
Positive Outlook
- Full year 2022 reported sales growth to be approximately 5% to 8%.
- Full year 2022 organic sales growth to be approximately 3% to 6%.
- Operating income growth of 10%+
- Supply issues will begin to abate in the back half of 2022 for most of our brands.
- 40% of our portfolio is considered value products.
Challenges Ahead
- Expects $85 million of incremental cost inflation in 2022 compared to expectations in January.
- Higher inflation at a faster rate than our price increases take effect.
- Full year reported gross margin to be down versus 2021.
- Effective tax rate to be 23%, an increase of 320 basis points.
- For Q2, EPS of $0.70 per share, an 8% decrease from last year’s adjusted Q2 EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income