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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.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Revenue by Segment
Household Products Revenue
CapyFin.comPersonal Care Products Revenue
CapyFin.comConsumer International Revenue
CapyFin.comSpecialty Products Division Revenue
CapyFin.com 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
- Lower consumption growth in the vitamin category
Revenue & Expenses
Visualization of income flow from segment revenue to net income