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Jun 30, 2022
Church & Dwight Q2 2022 Earnings Report
Church & Dwight's Q2 2022 performance saw net sales growth, driven by strong consumer demand, while EPS exceeded expectations despite increased cost inflation and currency headwinds.
Key Takeaways
Church & Dwight reported a 4.2% increase in net sales to $1,325.1 million and organic sales growth of 3.4% in Q2 2022. EPS was $0.76, exceeding the Company’s outlook of $0.70. The company revises full year 2022 EPS to flat, reflecting incremental inflation and F/X.
Net sales increased by 4.2%, with domestic sales up 4.7%, international sales up 1.6%, and specialty products division (SPD) up 6.3%.
Organic sales grew by 3.4%, with domestic up 2.4%, international up 6.5%, and SPD up 6.3%.
EPS was $0.76, flat to prior year adjusted EPS.
Gross margin contracted 220 bps due to higher commodities and third-party manufacturing costs.
Revenue by Segment
Forward Guidance
The Company expects full year 2022 reported sales growth to be approximately 4% to 5% and organic sales growth to be approximately 3% to 4%.
Positive Outlook
- Strong consumption for value detergents in the second half
- Marketing dollar spend is expected to be significantly higher in the second half
- Company is well positioned for a potential recessionary environment given that 40% of our portfolio is comprised of value products
- Recovery of fill rates in personal care
- Accelerated trade down to our value portfolio
Challenges Ahead
- Incremental cost inflation of $135 million in 2022
- Negative foreign currency impact of approximately 1%
- Expect inflation to outpace pricing and productivity
- Slowdown in discretionary brands such as Waterpik and Flawless
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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