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Jun 30, 2021
Church & Dwight Q2 2021 Earnings Report
Church & Dwight's Q2 2021 performance was marked by net sales and adjusted EPS exceeding expectations, driven by strong consumer demand and organic sales growth.
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.
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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