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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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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