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Church & Dwight
🇺🇸 NYSE:CHD
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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.

Total Revenue
$1.31B
Previous year: $1.24B
+5.6%
EPS
$0.8
Previous year: $0.7
+14.3%
Worldwide Organic Sales
3.7%
Previous year: 10.9%
-66.1%
Domestic Organic Sales
2.8%
Previous year: 10.7%
-73.8%
International Organic Sales
2.3%
Previous year: 11.6%
-80.2%
Gross Profit
$579M
Previous year: $565M
+2.5%
Cash and Equivalents
$180M
Previous year: $549M
-67.2%
Free Cash Flow
$289M
Previous year: $176M
+64.0%
Total Assets
$7.38B
Previous year: $7.08B
+4.3%

Church & Dwight

Church & Dwight

Church & Dwight Revenue by Segment

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

Company Overview

Full financial data and analysis

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