Church & Dwight Q2 2021 Earnings Report
Key Takeaways
Church & Dwight reported a 6.4% increase in net sales, reaching $1,271.1 million, and organic sales grew by 4.5%. EPS increased by 16.0% to $0.87 per share, while adjusted EPS decreased by 1.3% to $0.76, surpassing the company's outlook.
Net sales increased by 6.4%, with domestic sales up 3.1%, international sales up 21.0%, and specialty products division (SPD) sales up 11.8%.
Organic sales grew by 4.5%, driven by a volume increase, with domestic organic sales up 2.8%, international up 10.4%, and SPD up 11.8%.
EPS increased by 16.0%, while adjusted EPS decreased by 1.3%.
The company is experiencing supply chain disruptions and expects supply issues to begin to abate in Q4.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Forward Guidance
The company expects full year 2021 reported sales growth to be approximately 5% and organic sales growth to be approximately 4%. Adjusted EPS growth is expected to be at the lower end of the 6-8% range.
Positive Outlook
- Categories are growing and brands are performing well.
- Announced price increases to offset inflation.
- Reduction in coupons and promotions.
- Lower SG&A expenses.
- Pursuing accretive acquisitions.
Challenges Ahead
- Supply chain disruptions are expected to continue.
- Expects an incremental $125 million in full year input costs.
- Higher tax rate.
- Gross margin down 75 basis points.
- Constrained by supply for Q3, expecting reported sales growth of approximately 3.0% and organic sales growth of approximately 1.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income