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Sep 30, 2024
Church & Dwight Q3 2024 Earnings Report
Church & Dwight's Q3 2024 results exceeded expectations with strong sales growth and gross margin expansion, while affirming full-year outlook.
Key Takeaways
Church & Dwight reported a 3.8% increase in net sales to $1,510.6 million, driven by strong consumer demand. Organic sales grew by 4.3%, with volume contributing 3.1% and product mix and pricing contributing 1.2%. Adjusted EPS increased by 6.8% to $0.79, surpassing the company's outlook.
Net sales increased by 3.8%, with domestic growth of 3.3%, international growth of 9.5%, and a decrease in Specialty Products Division (SPD) sales of 8.0%.
Organic sales grew by 4.3%, driven by a 3.3% increase in domestic sales, an 8.1% increase in international sales, and a 7.5% increase in SPD sales.
Adjusted gross margin expanded by 60 basis points.
Adjusted EPS was $0.79, exceeding the company's outlook, while reported loss per share was -$0.31 due to non-cash asset impairment charges.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Church & Dwight anticipates full year reported sales to be approximately 3.5% and organic sales growth to be approximately 4%. The company is raising its outlook for full year adjusted gross margin expansion to approximately 110 basis points versus 2023. Full year adjusted EPS growth to be approximately 8%.
Positive Outlook
- Expects full year reported sales to be approximately 3.5% and organic sales growth to be approximately 4%.
- Raising outlook for full year adjusted gross margin expansion to approximately 110 basis points versus 2023.
- Expects marketing as a percentage of sales to be above 11%.
- Expects full year adjusted EPS growth to be approximately 8%.
- Cash flow from operations is now expected to be approximately $1.1 billion.
Challenges Ahead
- Remains cautious regarding the US consumer and category growth rates for Q4.
- Expects full year reported EPS to decline approximately 23% due to the asset impairment charge.
- Q4 investments will focus on driving future growth with higher marketing and SG&A investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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