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Jun 30, 2024
Church & Dwight Q2 2024 Earnings Report
Church & Dwight exceeded its outlook with stronger than expected sales growth and gross margin expansion.
Key Takeaways
Church & Dwight reported a 3.9% increase in net sales, reaching $1,511.2 million, and a 4.7% growth in organic sales. Adjusted EPS was $0.93, exceeding the company's outlook of $0.83. The company has raised its outlook for full-year gross margin and cash from operations.
Net sales increased by 3.9%, with domestic sales up 3.8%, international sales up 9.0%, and specialty products division sales down 8.6%.
Organic sales grew by 4.7%, driven by volume and positive product mix and pricing.
Adjusted gross margin increased by 150 basis points.
Reported EPS was $0.99, and adjusted EPS was $0.93, exceeding the company’s outlook.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Church & Dwight Revenue by Geographic Location
Revenue by Segment
Household Products Revenue
CapyFin.comPersonal Care Products Revenue
CapyFin.comConsumer International Revenue
CapyFin.comSpecialty Products Division Revenue
CapyFin.comRevenue by Geographic Location
Consumer Domestic Revenue
CapyFin.com Forward Guidance
The company expects full year organic sales growth to be approximately 4%. Reported sales growth is expected to be approximately 3.5%. Full year adjusted gross margin expansion is raised to approximately 100-110 basis points versus 2023. Full year reported EPS growth to be approximately 12 to 13% and adjusted EPS growth to be at the lower end of the 8 to 9% range. Cash flow from operations is now expected to be approximately $1.08 billion.
Positive Outlook
- Strong sales growth
- Gross margin expansion
- Earnings growth
- New product launches performing well
- Cash flow from operations expected to be approximately $1.08 billion
Challenges Ahead
- Uncertain consumer environment
- Category consumption growth has moderated
- Tightening organic revenue outlook
- Adjusted SG&A is now expected to be higher as a percent of sales compared to 2023
- Q3 Adjusted EPS of $0.67 per share, down 10% versus last year’s adjusted Q3 EPS
Revenue & Expenses
Visualization of income flow from segment revenue to net income