https://assets.capyfin.com/instruments/678fdc13234e27009c5d5aa1.png avatar
Church & Dwight
🇺🇸 NYSE:CHD
View Company
OverviewEarningsDividends
•
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%.

Total Revenue
$1.3B
Previous year: $1.24B
+4.7%
EPS
$0.83
Previous year: $0.83
+0.0%
Domestic Organic Sales
2.7%
Previous year: 5.1%
-47.1%
International Organic Sales
0.3%
Previous year: 3.2%
-90.6%
Specialty Organic Sales
9.2%
Previous year: 6%
+53.3%
Gross Profit
$553M
Previous year: $551M
+0.3%
Cash and Equivalents
$174M
Previous year: $128M
+36.8%
Free Cash Flow
$137M
Previous year: $73.9M
+85.7%
Total Assets
$7.94B
Previous year: $7.38B
+7.6%

Church & Dwight

Church & Dwight

Church & Dwight Revenue by Segment

Church & Dwight Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View Church & Dwight