Church & Dwight Q3 2022 Earnings Report
Key Takeaways
Church & Dwight reported a slight increase in net sales but a decline in organic sales for Q3 2022. EPS exceeded company outlook due to higher sales, lower SG&A expense, and a shift in marketing spend. The company adjusted its full-year outlook, expecting a sales growth of approximately 3% and organic sales growth of about 1%.
Net sales increased by 0.4%, driven by domestic sales growth, while international sales decreased.
Organic sales declined by 0.7% due to lower volumes, offset by positive pricing.
EPS was $0.76, a decrease compared to both reported and adjusted EPS in the prior year.
The company's outlook includes sales growth of approximately 3% and organic sales growth of approximately 1% for the full year.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Forward Guidance
The company expects full year 2022 reported sales growth to be approximately 3% and organic sales growth to be approximately 1%. Adjusted EPS is expected to be in the range of $2.93-$2.97.
Positive Outlook
- Full year 2022 reported sales growth to be approximately 3%.
- Full year organic sales growth to be approximately 1%.
- Adjusted EPS to be in the range of $2.93-$2.97.
- Fill level recovery has improved.
- Continue to invest incrementally in marketing behind brands in Q4 to ensure long term growth.
Challenges Ahead
- Full year reported gross margin to be down versus 2021, Inflation to outpace pricing and productivity.
- Q4, expect reported sales growth of approximately 2%.
- Organic sales to decline approximately 1%.
- Gross margin contraction as we experience negative mix within our portfolio.
- Adjusted EPS of $0.58-$0.62 per share, a 3-9% decrease from last year’s adjusted Q4 EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income