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Mar 31, 2024
Church & Dwight Q1 2024 Earnings Report
Church & Dwight's Q1 2024 performance was marked by exceeding expectations with robust sales growth and gross margin expansion.
Key Takeaways
Church & Dwight reported a strong Q1 2024, exceeding its outlook with net sales up 5.1% to $1,503.3 million and organic sales up 5.2%. Gross margin expanded by 220 basis points, and reported EPS increased by 13.4%. The company also raised its full-year gross margin and EPS outlook.
Net sales increased by 5.1%, driven by growth in domestic, international, and specialty products divisions.
Organic sales grew by 5.2%, with volume contributing 3.7% and positive product mix and pricing contributing 1.5%.
Gross margin expanded by 220 basis points due to improved productivity, volume, mix, and pricing.
The company raised its full-year outlook for gross margin expansion to 75 basis points and adjusted EPS growth to 8-9%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Church & Dwight anticipates continued strong performance for 2024, with expectations of robust sales growth, gross margin expansion, and strong earnings growth. The company will focus on offering high-quality products at the right value and is optimistic about new product launches.
Positive Outlook
- Full-year 2024 reported and organic sales growth expected to be approximately 4 to 5%.
- Full-year gross margin expansion expected to be approximately 75 basis points versus 2023.
- Full-year reported EPS growth is expected to be approximately +9.5-10.5%.
- Adjusted EPS growth expectation is now 8-9%.
- Cash flow from operations is now expected to be approximately $1.05 billion.
Challenges Ahead
- Expect moderate gross margin expansion for Q2.
- Expect increased marketing spending in Q2 to support the innovation pipeline.
- Expect higher SG&A expense in Q2.
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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