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Sep 30, 2022
Church & Dwight Q3 2022 Earnings Report
Net sales increased slightly, but organic sales declined due to volume decreases, while EPS exceeded expectations due to higher sales and lower expenses.
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
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 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