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Church & Dwight
🇺🇸 NYSE:CHD
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Dec 31, 2021

Church & Dwight Q4 2021 Earnings Report

Church & Dwight reported Q4 2021 results with net sales and EPS exceeding expectations.

Key Takeaways

Church & Dwight reported a 5.7% increase in net sales for Q4 2021, reaching $1,368.7 million. EPS increased by 8.5% to $0.64 per share, and adjusted EPS grew by 20.8%. Organic sales grew by 4.3%.

Net sales increased by 5.7%, driven by growth in domestic, international, and specialty products divisions.

Organic sales grew by 4.3%, exceeding the company's outlook.

EPS increased by 8.5% to $0.64 per share, with adjusted EPS growth of 20.8%.

The company closed on the THERABREATH® acquisition in late December, expecting $100 million in sales for 2022.

Total Revenue
$1.37B
Previous year: $1.3B
+5.7%
EPS
$0.64
Previous year: $0.53
+20.8%
Domestic Organic Sales
3.6%
International Organic Sales
4.7%
Specialty Organic Sales
12%
Gross Profit
$581M
Previous year: $557M
+4.3%
Cash and Equivalents
$241M
Previous year: $183M
+31.4%
Free Cash Flow
$286M
Previous year: $148M
+93.2%
Total Assets
$8B
Previous year: $7.41B
+7.8%

Church & Dwight

Church & Dwight

Church & Dwight Revenue by Segment

Church & Dwight Revenue by Geographic Location

Forward Guidance

The Company expects full year 2022 reported sales growth to be approximately 5%-8% and organic sales growth to be approximately 3%-6%. We estimate full year EPS of $3.14 to $3.26, an increase of 4%-8% compared to prior year adjusted EPS.

Positive Outlook

  • Categories expected to remain at elevated consumption levels, including gummy vitamins, laundry, laundry additives, hair growth supplements, and cat litter.
  • Household penetration is increasing, and existing households are consuming more vitamins.
  • Committed to offsetting inflation with price increases.
  • Expect operating profit margin expansion of 60 to 70 basis points compared to prior year adjusted operating margin.
  • THERABREATH ® brand to be fully integrated by the end of 2022 and continue to pursue accretive acquisitions.

Challenges Ahead

  • Expect incremental cost inflation of $155 million versus 2021.
  • Expect to experience higher inflation at a faster rate than our price increases take effect in 2022.
  • The 2022 effective tax rate is expected to be approximately 23%, an increase of 320 basis points.
  • Full year reported gross margin to be down versus 2021, as we expect inflation to be partially offset by pricing and productivity.
  • Cash flow from operations is expected to be approximately $920 million as we increase safety stock inventory levels

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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