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Dec 31, 2022
Church & Dwight Q4 2022 Earnings Report
Net sales exceeded outlook, and provided 2023 outlook. A 4% dividend increase was announced.
Key Takeaways
Church & Dwight reported a 4.9% increase in net sales for Q4 2022, exceeding the company's outlook. Organic sales increased by 0.4%. Adjusted EPS was $0.62, at the high end of the company's outlook.
Q4 net sales increased 4.9%, exceeding the Company’s outlook of 2% growth.
Organic sales increased 0.4%, exceeding the Company’s outlook of down 1%.
Adjusted EPS in Q4 was $0.62 per share compared to $0.64 EPS in Q4 2021.
The Domestic business gained market share in 7 of our 14 power brands and expects to accelerate market share gains in 2023 as we materially increase our marketing spending as a percent of sales.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects full year reported sales growth to be approximately 5-7% with organic sales growth of approximately 2-4%. Adjusted EPS expectation for 2023 is 0-4% growth.
Positive Outlook
- Pricing will drive the organic sales increase with volumes relatively stable.
- We intend to sustain the current momentum in consumption by increasing marketing as a percentage of net sales to approximately 10.5%.
- Gross margin is expected to benefit from pricing, pack size changes, laundry concentration and the full year impact of the higher margin HERO business.
- Supply chain fill levels continue to show improvement and we expect a return to pre-pandemic levels in the second half of 2023 as incremental capacity comes online.
- Operating profit is expected to increase 4% to 8% reflecting the strength of the business.
Challenges Ahead
- Uncertainty remains regarding inflation, commodities, interest rates, currency movements, China, and consumer confidence.
- We expect 1st half volumes to be lower year-over-year due to continued softness in our discretionary categories, with a return to volume growth in the 2nd half.
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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