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Mar 31, 2023
Church & Dwight Q1 2023 Earnings Report
Church & Dwight exceeded its outlook with double digit sales growth and 90 basis points of gross margin expansion.
Key Takeaways
Church & Dwight reported a 10.2% increase in net sales to $1,429.8 million, driven by strong consumer demand. Organic sales grew by 5.7%, influenced by positive product mix and pricing. Reported EPS was $0.82, while adjusted EPS reached $0.85, surpassing the company's outlook.
Net sales increased by 10.2%, with domestic sales up 12.2% and international sales up 7.5%.
Organic sales grew by 5.7%, driven by domestic growth of 5.5% and international growth of 11.6%.
Gross margin increased by 90 basis points.
Adjusted EPS was $0.85, a 2.4% increase compared to the previous year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is raising the full year outlook for Sales, EPS, Gross Margin and Cash Flow. Expects full year 2023 reported sales growth to be approximately 6-7% and organic sales growth to be approximately 3-4%.
Positive Outlook
- Sales and earnings momentum from Q1 expected to continue throughout 2023.
- Full year reported sales growth expected to be approximately 6-7%.
- Full year organic sales growth expected to be approximately 3-4%.
- Full year reported gross margin to expand approximately 120 basis points versus 2022.
- Cash flow from operations is now expected to be approximately $950 million.
Challenges Ahead
- SG&A both in dollars and as a percent of net sales to increase compared to 2022.
- Tax rate to increase to approximately 23%.
- Higher interest expense to be a drag to Adjusted EPS.
- Other expense for 2023 is expected to be approximately $110 million reflecting an increase in interest expense due to higher rates as well as debt related to the recent acquisition of HERO.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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