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Jun 30, 2023
Church & Dwight Q2 2023 Earnings Report
Church & Dwight exceeded its outlook with stronger than expected sales growth and gross margin expansion.
Key Takeaways
Church & Dwight reported a 9.7% increase in net sales to $1,454.2 million and a gross margin expansion of 270 basis points. Organic sales grew by 5.4%, driven by positive product mix and pricing.
Net sales increased by 9.7%, with domestic sales up by 12.3% and international sales up by 4.9%.
Organic sales grew by 5.4%, with domestic organic sales up by 6.3% and international organic sales up by 6.1%.
Gross margin expanded by 270 basis points due to improved pricing, productivity, and the impact of the HERO acquisition.
Adjusted EPS increased by 21.1% to $0.92, exceeding the Company’s outlook of $0.78.
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 is raising the full year outlook for Sales, Gross Margin, EPS, and Cash Flow, while funding significant incremental investments in marketing and SG&A.
Positive Outlook
- Full year 2023 reported sales growth to be approximately 8%.
- Organic sales growth to be approximately 5%.
- Full year gross margin to expand approximately 200 basis points.
- Double-digit percentage increase in gross profit in full year 2023.
- Cash flow from operations is now expected to be approximately $1.0 billion.
Challenges Ahead
- Second half EPS growth to be flat.
- Expects a significant increase in marketing spending and higher SG&A.
- Higher tax rate in Q3.
- Q3 Adjusted EPS of $0.66 per share, a 13% decrease from last year’s Adjusted Q3 EPS.
- Reported EPS of $0.63 for Q3, a 17.1% decrease.
Revenue & Expenses
Visualization of income flow from segment revenue to net income