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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.
Revenue by Segment
Revenue by Geographic Location
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
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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