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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%.
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
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.
- Expect a significantly higher tax rate (24%) in Q2 compared to the prior year (17.9%).
- Expect reported EPS of $0.81 and Adjusted EPS of $0.83 per share in Q2, down 10% versus last year’s adjusted Q2 EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income