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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.
Revenue by Segment
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.
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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