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Sep 30, 2021
Church & Dwight Q3 2021 Earnings Report
Church & Dwight's Q3 2021 results exceeded expectations, driven by strong consumer demand and effective pricing actions.
Key Takeaways
Church & Dwight reported a 5.7% increase in net sales to $1,311.4 million, with organic sales growing by 3.7%. EPS increased by 8.2% to $0.92 per share, and adjusted EPS rose by 14.3% to $0.80 per share, exceeding the company's outlook. The company also announced a $1 billion stock repurchase program.
Net sales increased by 5.7% to $1,311.4 million, driven by growth in domestic, international, and specialty products segments.
Organic sales grew by 3.7%, exceeding the company's outlook of 1.5%.
Adjusted EPS increased by 14.3% to $0.80 per share, surpassing the company's adjusted outlook of $0.70 per share.
The company announced a new stock repurchase program authorizing up to $1 billion of the Company's common stock.
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 2021 reported sales growth to be approximately 5.5% and organic sales growth to be approximately 4%. Adjusted EPS growth is expected to be 6%. For Q4, the company expects reported sales growth of approximately 3% and organic sales growth of approximately 2%. Adjusted EPS is expected to be $0.61 per share, +15% from last year’s adjusted Q4 EPS.
Positive Outlook
- Expects full year 2021 reported sales growth to be approximately 5.5%.
- Expects full year 2021 organic sales growth to be approximately 4%.
- Expects full year 2021 adjusted EPS growth of 6%.
- Expects Q4 adjusted EPS to be $0.61 per share, +15% from last year’s adjusted Q4 EPS.
- Marketing expense is projected to be 13% of net sales in Q4 to continue to support our brands.
Challenges Ahead
- Expects reported sales growth of approximately 3% in Q4 as we are temporarily constrained by supply.
- Expects organic sales growth of approximately 2% in Q4 as we are temporarily constrained by supply.
- Expects full year gross margin to decrease 170 basis points.
- Now expect an incremental $170 million for the full year in input costs (previously $125 million).
- Expect input costs and transportation costs to remain elevated in Q4 and expect significant incremental cost increases in 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income