Church & Dwight Reports Q2 2024 Results
Church & Dwight (NYSE: CHD) reported strong Q2 2024 results, exceeding expectations with net sales increasing by 3.9% to $1,511.2 million, driven by robust consumer demand.
Organic sales grew by 4.7% due to a 3.5% volume increase and a 1.2% positive product mix and pricing. The company’s reported EPS rose by 11.2% to $0.99, aided by a favorable tariff ruling, while adjusted EPS increased by 1.1% to $0.93. Adjusted gross margin expanded by 150 basis points.
For the full year, the company forecasts net sales growth of 3.5% and organic sales growth of 4.0%. Cash from operations is projected to reach $1.08 billion.
CEO Matthew Farrell highlighted the success of new products and strong performance across all divisions. The domestic segment saw a 3.8% sales increase, international sales rose by 9.0%, and the specialty products division’s organic sales grew by 3.9%. However, the specialty division faced an 8.6% decline in net sales due to strategic exits from certain businesses.
Church & Dwight (NYSE: CHD) ha riportato risultati solidi per il secondo trimestre del 2024, superando le aspettative con un fatturato netto in aumento del 3,9% a 1.511,2 milioni di dollari, sostenuto da una forte domanda dei consumatori.
Le vendite organiche sono cresciute del 4,7%, grazie a un incremento del volume del 3,5% e a un mix e a prezzi dei prodotti positivi dell'1,2%. L'EPS riportato dell'azienda è aumentato dell'11,2% a 0,99 dollari, favoriti da un pronunciamento tariffario favorevole, mentre l'EPS rettificato è aumentato dell'1,1% a 0,93 dollari. Il margine lordo rettificato si è ampliato di 150 punti base.
Per l'intero anno, l'azienda prevede una crescita del fatturato netto del 3,5% e una crescita delle vendite organiche del 4,0%. Si prevede che il flusso di cassa dalle operazioni raggiunga 1,08 miliardi di dollari.
Il CEO Matthew Farrell ha evidenziato il successo dei nuovi prodotti e le ottime performance in tutte le divisioni. Il segmento domestico ha registrato un aumento delle vendite del 3,8%, le vendite internazionali sono aumentate del 9,0%, e le vendite organiche della divisione prodotti speciali sono cresciute del 3,9%. Tuttavia, la divisione speciali ha affrontato una diminuzione dell'8,6% nelle vendite nette a causa di uscite strategiche da alcune attività.
Church & Dwight (NYSE: CHD) reportó resultados sólidos para el segundo trimestre de 2024, superando las expectativas con un ingreso neto que aumentó un 3,9% a 1.511,2 millones de dólares, impulsado por una fuerte demanda de los consumidores.
Las ventas orgánicas crecieron un 4,7% gracias a un aumento del volumen del 3,5% y una mezcla y precios de productos positivos del 1,2%. El EPS reportado de la compañía aumentó un 11,2% a 0,99 dólares, beneficiado por un fallo arancelario favorable, mientras que el EPS ajustado creció un 1,1% a 0,93 dólares. El margen bruto ajustado se amplió en 150 puntos básicos.
Para todo el año, la compañía prevé un crecimiento del ingreso neto del 3,5% y un crecimiento de las ventas orgánicas del 4,0%. Se proyecta que el flujo de efectivo de las operaciones alcance 1,08 mil millones de dólares.
El CEO Matthew Farrell destacó el éxito de los nuevos productos y un sólido rendimiento en todas las divisiones. El segmento nacional vio un aumento del 3,8% en ventas, las ventas internacionales aumentaron un 9,0%, y las ventas orgánicas de la división de productos especiales crecieron un 3,9%. Sin embargo, la división especial enfrentó una disminución del 8,6% en ingresos netos debido a salidas estratégicas de ciertos negocios.
Church & Dwight (NYSE: CHD)는 2024년 2분기 실적을 발표하며 기대치를 초과 달성하며 순매출이 3.9% 증가한 15억 1,120만 달러에 달했다고 보고했습니다. 이는 강력한 소비자 수요에 힘입은 것입니다.
유기농 판매는 3.5%의 물량 증가와 1.2%의 긍정적인 제품 혼합 및 가격 덕분에 4.7% 성장했습니다. 회사의 보고된 EPS는 0.99달러로 11.2% 증가했으며, 이는 유리한 세금 판결에 힘입은 것이고, 조정 EPS는 0.93달러로 1.1% 증가했습니다. 조정된 총 마진은 150베이시스 포인트 확장되었습니다.
연간 실적으로 회사는 순매출 성장률을 3.5%, 유기농 판매 성장률을 4.0%로 예상하고 있습니다. 운영으로부터의 현금 흐름은 10억 8천만 달러에 이를 것으로 예측됩니다.
CEO 매튜 패럴은 새로운 제품의 성공과 모든 부문에서의 강력한 성과를 강조했습니다. 국내 부문은 3.8%의 판매 증가를 기록했으며, 국제 판매는 9.0% 증가했고, 전문 제품 부문의 유기농 판매는 3.9% 성장했습니다. 그러나 전문 부문은 일부 사업에서의 전략적 철수로 인해 순매출이 8.6% 감소했습니다.
Church & Dwight (NYSE: CHD) a annoncé des résultats solides pour le deuxième trimestre 2024, dépassant les attentes avec un chiffre d'affaires net en augmentation de 3,9% à 1 511,2 millions de dollars, soutenu par une forte demande des consommateurs.
Les ventes organiques ont augmenté de 4,7% en raison d'une hausse de 3,5% du volume et d'un mix produit et de prix positifs de 1,2%. Le bénéfice par action rapporté par l'entreprise a grimpé de 11,2% pour atteindre 0,99 dollar, soutenu par un arrêt tarifaire favorable, tandis que le bénéfice par action ajusté a augmenté de 1,1% pour atteindre 0,93 dollar. La marge brute ajustée a été élargie de 150 points de base.
Pour l'année entière, l'entreprise prévoit une croissance du chiffre d'affaires net de 3,5% et une croissance des ventes organiques de 4,0%. On prévoit que les flux de trésorerie provenant des opérations atteindront 1,08 milliard de dollars.
Le PDG Matthew Farrell a souligné le succès des nouveaux produits et une performance solide dans toutes les divisions. Le segment domestique a connu une augmentation des ventes de 3,8%, les ventes internationales ont augmenté de 9,0%, et les ventes organiques de la division produits spécialisés ont augmenté de 3,9%. Cependant, la division spécialisée a subi une baisse de 8,6% des ventes nettes en raison d'une sortie stratégique de certaines activités.
Church & Dwight (NYSE: CHD) hat im 2. Quartal 2024 starke Ergebnisse berichtet, die die Erwartungen übertreffen, mit einem Nettoverkauf, der um 3,9% auf 1.511,2 Millionen Dollar gestiegen ist, was durch eine starke Verbrauchernachfrage angetrieben wurde.
Die organischen Verkäufe wuchsen um 4,7%, bedingt durch einen Volumenzuwachs von 3,5% und einen positiven Produktmix sowie Preisgestaltung von 1,2%. Der berichtete EPS des Unternehmens stieg um 11,2% auf 0,99 Dollar, unterstützt durch eine günstige Zollentscheidung, während der bereinigte EPS um 1,1% auf 0,93 Dollar anstieg. Der bereinigte Bruttomargenanteil hat sich um 150 Basispunkte erhöht.
Für das gesamte Jahr prognostiziert das Unternehmen ein Wachstum des Nettoverkaufs von 3,5% und ein Wachstum der organischen Verkäufe von 4,0%. Der Cashflow aus dem operativen Geschäft wird auf 1,08 Milliarden Dollar geschätzt.
CEO Matthew Farrell hob den Erfolg neuer Produkte und die starke Leistung in allen Abteilungen hervor. Der Inlandsbereich verzeichnete einen Anstieg der Verkäufe um 3,8%, der internationale Verkauf stieg um 9,0%, und die organischen Verkäufe der Spezialprodukteabteilung wuchsen um 3,9%. Allerdings verzeichnete die Spezialabteilung einen Rückgang des Nettoverkaufs um 8,6% aufgrund strategischer Ausstiege aus bestimmten Geschäften.
- Net sales increased by 3.9% to $1,511.2 million.
- Organic sales grew 4.7%, driven by volume and product mix.
- Reported EPS rose by 11.2% to $0.99.
- Adjusted EPS increased by 1.1% to $0.93.
- Cash from operations projected to reach $1.08 billion for the full year.
- Domestic and international divisions showed strong organic growth.
- Specialty Products Division's net sales declined by 8.6%.
Insights
Church & Dwight's Q2 2024 results demonstrate strong performance across key metrics. The company reported
The company's gross margin expansion is particularly noteworthy. Reported gross margin increased by 320 basis points to
Church & Dwight's focus on marketing investment is evident, with marketing expenses increasing to
The company's cash flow generation remains robust, with
Looking ahead, Church & Dwight has tightened its full-year organic sales growth forecast to approximately
Overall, these results suggest that Church & Dwight is navigating the challenging consumer environment effectively, with a strong focus on innovation, marketing and operational efficiency driving growth and profitability.
Church & Dwight's Q2 results reveal interesting trends in consumer behavior and market dynamics. The company's success in driving volume growth (
The company's performance in the e-commerce channel is impressive, with global online sales reaching
The company's innovation pipeline appears strong, with new product launches across various categories. The introduction of ARM & HAMMER™ POWER SHEETS™ Laundry Detergent, for example, taps into the growing consumer demand for sustainable and convenient products. Similarly, the expansion of THERABREATH™ into the antiseptic mouthwash segment demonstrates the company's ability to identify and capitalize on market opportunities.
However, the report also indicates some challenges. The vitamin business and FLAWLESS™ brand experienced declines, suggesting potential shifts in consumer priorities or increased competition in these segments. Additionally, the slowdown in category consumption growth from
The acquisition of Graphico, Church & Dwight's Japan-based distributor, signals the company's commitment to international expansion, particularly in the Asian market. This move could provide valuable insights into local consumer preferences and potentially drive future growth in the region.
Overall, Church & Dwight's Q2 results reflect a company successfully navigating a complex market landscape through a combination of innovation, strategic marketing and operational efficiency.
2024 Second Quarter Results
-
Net Sales +
3.9% : Domestic +3.8% , Int’l +9.0% , SPD -8.6% -
Organic Sales1 +
4.7% : Domestic +3.8% , Int’l +9.3% , SPD +3.9% - Adjusted Gross Margin1 +150 bps
-
Reported EPS
, Adjusted EPS$0.99 1$0.93 -
YTD Cash from Operations of
$499.9 million
2024 Full Year Outlook
-
Net Sales +
3.5% ; Organic Sales +4.0% 1 - Adjusted Gross Margin expansion raised to +100 to 110 bps
-
Reported EPS +12 to +
13% -
Adjusted EPS lower end of +8 to +
9% range1 -
Cash from Operations
~ $1.08 billion
Reported gross margin expanded by 320 basis points, and reported EPS was
Matthew Farrell, Chief Executive Officer, commented, “We are really pleased with another strong quarter. The Company is performing well with all three divisions delivering organic growth. Our outstanding Q2 results reflect the strength of our brands, the early success of our new products, and our perennial focus on execution. Volume was the primary driver of organic growth, and we expect volume growth to continue for the rest of the year. Marketing as a percent of sales increased 100 basis points driving strong consumption and share gains. Global online sales grew to
“Organic revenue growth was broad-based as all three businesses posted strong results. The Domestic Division grew
"The International Division grew
“Our Specialty Products Division grew organic revenue
Second Quarter Review
Consumer Domestic net sales were
Consumer International net sales were
Specialty Products net sales were
Gross margin increased 320 basis points to
Marketing expense was
Selling, general, and administrative expense (SG&A) was
Income from Operations was
Other Expense decreased
The effective tax rate was
Operating Cash Flow
For the first six months of 2024, cash from operations was
At June 30, 2024, cash on hand was
2024 New Products
Mr. Farrell commented, “Product innovation continues to be a big driver of our success and we are excited about our new product launches. Through the first half of 2024, we are encouraged by consumer enthusiasm for several of our new product introductions.
“ARM & HAMMER™ Laundry launched Deep Clean™ Liquid and Deep Clean Unit Dose Laundry Detergent, our most premium ARM & HAMMER laundry detergent, entering the mid-tier of the category and delivering a superior clean at the right value.
“ARM & HAMMER™ Laundry launched POWER SHEETS™ Laundry Detergent online in August 2023. This innovative laundry solution is effective, convenient, and eliminates plastic bottle waste. ARM & HAMMER is the first major brand to offer a detergent sheet in the
“ARM & HAMMER™ Hardball™ Clumping Litter has expanded nationally after successful in-market testing in 2023. This plant-based litter is lightweight and creates virtually indestructible clumps for no-mess scooping. We expect this new litter to help ARM & HAMMER capture a greater share of the lightweight litter category.
“THERABREATH™, the #1 alcohol-free mouthwash brand, has entered the antiseptic segment of the category with the launch of THERABREATH Deep Clean Oral Rinse. Antiseptic mouthwashes account for
“BATISTE™, the global leader in dry shampoo, is meeting consumers’ desire for longer-lasting results with new BATISTE Sweat Activated and BATISTE Touch Activated dry shampoos. These breakthrough products are formulated with advanced technology and release a burst of fragrance whenever you sweat or touch your hair.
“HERO™ continues to drive the majority of growth in the acne category as the #1 patch brand in the
Outlook for 2024
Mr. Farrell stated, “We completed an exceptional first half delivering strong sales growth, gross margin expansion, and earnings growth. The Company ranked #1 out of our top 10 CPG peers in Q2 dollar consumption growth and #2 in volume growth and we continue to grow share. Despite an uncertain consumer environment, we remain confident about 2024 and will continue to focus on offering high quality products to consumers at the right value. We are thrilled with the early success of our new product launches. This outlook reflects strong growth across all key measures, including reported and organic sales, volume, gross margin expansion, operating income growth and cash flow.
“Category consumption growth in both dollars and units has moderated as the consumer remains under pressure. In June and July we saw consumption dollar growth slow in our eight main categories to
“We are raising our outlook for full year adjusted gross margin expansion to approximately 100-110 basis points versus 2023 (previously 75 basis points). We continue to expect carryover product pricing, mix, higher volume and productivity to offset higher manufacturing costs.
“We will continue to invest behind our brands and continue to expect marketing as a percentage of sales to be approximately
“Adjusted SG&A is now expected to be higher as a percent of sales compared to 2023 (previously expected to be flat) reflecting incremental costs related to the Graphico acquisition and higher incentive compensation compared to our prior outlook.
“We now expect full year reported EPS growth to be approximately 12 to
“Cash flow from operations is now expected to be approximately
“We expect 2024 capital expenditures of approximately
“For Q3, we expect reported sales growth of approximately
1 Organic Sales, Adjusted Gross Margin, Adjusted SG&A, Adjusted Income from Operations and Adjusted EPS are non-GAAP measures. See non-GAAP reconciliations included at the end of this release.
Church & Dwight Co., Inc. (NYSE: CHD) will host a webcast to discuss second quarter 2024 results on August 2, 2024, at 10:00 a.m. (ET). The webcast will be broadcast online at https.//investor.churchdwight.com/investors/news-events. It will also be available for replay from August 2, 2024, to August 9, 2024.
Church & Dwight Co., Inc. (NYSE: CHD) founded in 1846, is the leading
Church & Dwight has a heritage of commitment to people and the planet. In the early 1900’s, we began using recycled paperboard for all packaging of household products. Today, virtually all our paperboard packaging is from certified, sustainable sources. In 1970, the ARM & HAMMER brand introduced the first nationally distributed, phosphate-free detergent. That same year, Church & Dwight was honored to be the sole corporate sponsor of the first annual Earth Day. In 2023, our continued progress earned continued public recognition, including the Newsweek Magazine’s Americas Most Responsible and America’s Greenest Companies lists, the EPA’s Green Power Partnership-Top 100 list, the 2023 Wall Street Journal Management Top 250 List, the 2022/2023 Forbes Magazine: Americas Best Midsize Employer Award and the FTSE4Good Index Series, amongst others.
For more information, see the Church & Dwight 2023 Sustainability Report at: https://churchdwight.com/responsibility/
This press release contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending; recessionary conditions; interest rates; inflation; sufficiency of cash flows from operations; earnings per share; cost savings programs; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact of acquisitions (including earn-outs); and capital expenditures. Other forward-looking statements in this release may be identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Factors that could cause such differences include a decline in market growth, retailer distribution and consumer demand (as a result of, among other things, political, economic and marketplace conditions and events), including those relating to the outbreak of contagious diseases; other impacts of the COVID-19 pandemic and its impact on the Company’s operations, customers, suppliers, employees, and other constituents, and market volatility and impact on the economy (including contributions to recessionary conditions), resulting from global, nationwide or local or regional outbreaks or increases in infections, new variants, and the risk that the Company will not be able to successfully execute its response plans with respect to the pandemic or localized outbreaks and the corresponding uncertainty; the impact of new legislation such as the
For a description of additional factors that could cause actual results to differ materially from the forward-looking statements, please see Item 1A, “Risk Factors” in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the
This press release also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in its results and providing meaningful period-to-period comparisons. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the Company’s financial statements presented in accordance with GAAP.
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES |
|||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|||||||||||||
(In millions, except per share data) |
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|||||||
Net Sales |
|
$ |
1,511.2 |
|
|
$ |
1,454.2 |
|
|
$ |
3,014.5 |
|
|
$ |
2,884.0 |
|
|||
Cost of sales |
|
|
799.1 |
|
|
|
815.3 |
|
|
|
1,615.4 |
|
|
|
1,623.1 |
|
|||
Gross Profit |
|
|
712.1 |
|
|
|
638.9 |
|
|
|
1,399.1 |
|
|
|
1,260.9 |
|
|||
Marketing expenses |
|
|
152.4 |
|
|
|
132.2 |
|
|
|
304.4 |
|
|
|
254.5 |
|
|||
Selling, general and administrative expenses |
|
|
222.8 |
|
|
|
213.1 |
|
|
|
452.8 |
|
|
|
420.9 |
|
|||
Income from Operations |
|
|
336.9 |
|
|
|
293.6 |
|
|
|
641.9 |
|
|
|
585.5 |
|
|||
Equity in earnings of affiliates |
|
|
3.1 |
|
|
|
2.0 |
|
|
|
4.2 |
|
|
|
6.4 |
|
|||
Other income (expense), net |
|
|
(19.5 |
) |
|
|
(26.2 |
) |
|
|
(41.5 |
) |
|
|
(53.7 |
) |
|||
Income before Income Taxes |
|
|
320.5 |
|
|
|
269.4 |
|
|
|
604.6 |
|
|
|
538.2 |
|
|||
Income taxes |
|
|
77.0 |
|
|
|
48.2 |
|
|
|
133.4 |
|
|
|
113.8 |
|
|||
Net Income |
|
$ |
243.5 |
|
|
$ |
221.2 |
|
|
$ |
471.2 |
|
|
$ |
424.4 |
|
|||
Net Income per share - Basic |
|
$ |
1.00 |
|
|
$ |
0.90 |
|
|
$ |
1.93 |
|
|
$ |
1.74 |
|
|||
Net Income per share - Diluted |
|
$ |
0.99 |
|
|
$ |
0.89 |
|
|
$ |
1.91 |
|
|
$ |
1.72 |
|
|||
Dividends per share |
|
$ |
0.28 |
|
|
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
0.54 |
|
|||
Weighted average shares outstanding - Basic |
|
|
244.3 |
|
|
|
245.0 |
|
|
|
243.9 |
|
|
|
244.4 |
|
|||
Weighted average shares outstanding - Diluted |
|
|
247.0 |
|
|
|
247.9 |
|
|
|
246.5 |
|
|
|
247.4 |
|
|||
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES |
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(Dollars in millions) |
|
June 30, 2024 |
|
|
December 31, 2023 |
||
Assets |
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
||
Cash and Cash Equivalents |
|
$ |
491.7 |
|
|
$ |
344.5 |
Accounts Receivable |
|
|
587.9 |
|
|
|
526.9 |
Inventories |
|
|
627.3 |
|
|
|
613.3 |
Other Current Assets |
|
|
48.3 |
|
|
|
45.0 |
Total Current Assets |
|
|
1,755.2 |
|
|
|
1,529.7 |
Property, Plant and Equipment (Net) |
|
|
943.6 |
|
|
|
927.7 |
Equity Investment in Affiliates |
|
|
12.8 |
|
|
|
12.0 |
Trade Names and Other Intangibles |
|
|
3,244.7 |
|
|
|
3,302.3 |
Goodwill |
|
|
2,432.6 |
|
|
|
2,431.5 |
Other Long-Term Assets |
|
|
373.2 |
|
|
|
366.0 |
Total Assets |
|
$ |
8,762.1 |
|
|
$ |
8,569.2 |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
Short-Term Debt |
|
$ |
6.1 |
|
|
$ |
3.9 |
Current portion of Long-Term debt |
|
0.0 |
|
|
|
199.9 |
|
Other Current Liabilities |
|
|
1,143.6 |
|
|
|
1,218.2 |
Total Current Liabilities |
|
|
1,149.7 |
|
|
|
1,422.0 |
Long-Term Debt |
|
|
2,207.6 |
|
|
|
2,202.2 |
Other Long-Term Liabilities |
|
|
1,099.3 |
|
|
|
1,089.6 |
Stockholders’ Equity |
|
|
4,305.5 |
|
|
|
3,855.4 |
Total Liabilities and Stockholders’ Equity |
|
$ |
8,762.1 |
|
|
$ |
8,569.2 |
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES |
|||||||||
Condensed Consolidated Statements of Cash Flow (Unaudited) |
|||||||||
|
|
Six Months Ended |
|
||||||
(Dollars in millions) |
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|||
|
|
|
|
|
|
|
|||
Net Income |
|
$ |
471.2 |
|
|
$ |
424.4 |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
117.2 |
|
|
|
110.7 |
|
|
Deferred income taxes |
|
|
(7.4 |
) |
|
|
(1.9 |
) |
|
Non-cash compensation |
|
|
40.2 |
|
|
|
39.5 |
|
|
Other |
|
|
4.2 |
|
|
|
(1.8 |
) |
|
Subtotal |
|
|
625.4 |
|
|
|
570.9 |
|
|
|
|
|
|
|
|
|
|||
Changes in assets and liabilities: |
|
|
|
|
|
|
|||
Accounts receivable |
|
|
(62.2 |
) |
|
|
(32.4 |
) |
|
Inventories |
|
|
(8.2 |
) |
|
|
(24.3 |
) |
|
Other current assets |
|
|
1.7 |
|
|
|
8.8 |
|
|
Accounts payable |
|
|
61.0 |
|
|
|
(4.7 |
) |
|
Accrued expenses |
|
|
(108.8 |
) |
|
|
(12.4 |
) |
|
Income taxes payable |
|
|
0.9 |
|
|
|
6.6 |
|
|
Other |
|
|
(9.9 |
) |
|
|
(3.3 |
) |
|
Net cash from operating activities |
|
|
499.9 |
|
|
|
509.2 |
|
|
|
|
|
|
|
|
|
|||
Capital expenditures |
|
|
(76.6 |
) |
|
|
(63.2 |
) |
|
Acquisition |
|
|
(19.9 |
) |
|
0.0 |
|
||
Proceeds from sale of assets |
|
|
6.6 |
|
|
0.0 |
|
||
Other |
|
|
(1.6 |
) |
|
|
(6.0 |
) |
|
Net cash (used in) investing activities |
|
|
(91.5 |
) |
|
|
(69.2 |
) |
|
|
|
|
|
|
|
|
|||
Net change in long-term debt |
|
|
(200.2 |
) |
|
|
(200.0 |
) |
|
Net change in short-term debt |
|
|
2.5 |
|
|
|
(70.6 |
) |
|
Payment of cash dividends |
|
|
(138.2 |
) |
|
|
(133.0 |
) |
|
Proceeds from stock option exercises |
|
|
79.5 |
|
|
|
88.3 |
|
|
Deferred financing and other |
|
|
(1.0 |
) |
|
|
(0.1 |
) |
|
Net cash (used in) financing activities |
|
|
(257.4 |
) |
|
|
(315.4 |
) |
|
|
|
|
|
|
|
|
|||
F/X impact on cash |
|
|
(3.8 |
) |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|||
Net change in cash and cash equivalents |
|
$ |
147.2 |
|
|
$ |
126.6 |
|
|
2024 and 2023 Product Line Net Sales |
|||||||||||
|
Three Months Ended |
|
|
Percent |
|
||||||
|
6/30/2024 |
|
|
6/30/2023 |
|
|
Change |
|
|||
Household Products |
$ |
653.2 |
|
|
$ |
619.2 |
|
|
|
5.5 |
% |
Personal Care Products |
|
517.4 |
|
|
|
509.0 |
|
|
|
1.7 |
% |
Consumer Domestic |
$ |
1,170.6 |
|
|
$ |
1,128.2 |
|
|
|
3.8 |
% |
Consumer International |
|
263.7 |
|
|
|
241.9 |
|
|
|
9.0 |
% |
Total Consumer Net Sales |
$ |
1,434.3 |
|
|
$ |
1,370.1 |
|
|
|
4.7 |
% |
Specialty Products Division |
|
76.9 |
|
|
|
84.1 |
|
|
|
-8.6 |
% |
Total Net Sales |
$ |
1,511.2 |
|
|
$ |
1,454.2 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|||
|
Six Months Ended |
|
|
Percent |
|
||||||
|
6/30/2024 |
|
|
6/30/2023 |
|
|
Change |
|
|||
Household Products |
$ |
1,292.1 |
|
|
$ |
1,220.8 |
|
|
|
5.8 |
% |
Personal Care Products |
|
1,043.7 |
|
|
|
1,024.3 |
|
|
|
1.9 |
% |
Consumer Domestic |
$ |
2,335.8 |
|
|
$ |
2,245.1 |
|
|
|
4.0 |
% |
Consumer International |
|
518.7 |
|
|
|
472.5 |
|
|
|
9.8 |
% |
Total Consumer Net Sales |
$ |
2,854.5 |
|
|
$ |
2,717.6 |
|
|
|
5.0 |
% |
Specialty Products Division |
|
160.0 |
|
|
|
166.4 |
|
|
|
-3.8 |
% |
Total Net Sales |
$ |
3,014.5 |
|
|
$ |
2,884.0 |
|
|
|
4.5 |
% |
Non-GAAP Measures:
The following discussion addresses the non-GAAP measures used in this press release and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. These non-GAAP financial measures should not be considered in isolation from or as a substitute for the comparable GAAP measures. The following non-GAAP measures may not be the same as similar measures provided by other companies due to differences in methods of calculation and items and events being excluded.
Organic Sales Growth:
This press release provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes. Management believes that the presentation of organic sales growth is useful to investors because it enables them to assess, on a consistent basis, sales trends related to products that were marketed by the Company during the entirety of relevant periods, excluding the impact of acquisitions, divestitures, and foreign exchange rate changes that are out of the control of, and do not reflect the performance of the Company and management.
Adjusted Gross Margin:
This press release provides information regarding adjusted gross margin, namely gross margin calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year gross margin.
Adjusted Selling, General, and Administrative Expense (SG&A):
This press release also presents adjusted SG&A, namely, SG&A calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year SG&A expense.
Adjusted Income from Operations:
This press release also presents adjusted income from operations, namely income from operations calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year income from operations.
Adjusted EPS:
This press release also presents adjusted earnings per share, namely, EPS calculated in accordance with GAAP, as adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We believe that this metric provides investors a useful perspective of underlying business trends and results and provides useful supplemental information regarding our year over year EPS growth.
CHURCH & DWIGHT CO., INC. |
|||||||||
Organic Sales |
|||||||||
|
|||||||||
|
Three Months Ended 6/30/2024 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Worldwide |
|
Consumer |
|
Consumer |
|
Specialty |
|
Company |
|
Consumer |
|
Domestic |
|
International |
|
Products |
Reported Sales Growth |
|
|
|
|
|
|
|
|
- |
Less: |
|
|
|
|
|
|
|
|
|
Acquisitions |
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
FX / Other |
|
|
|
|
|
|
|
|
|
Divestitures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended 6/30/2024 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Worldwide |
|
Consumer |
|
Consumer |
|
Specialty |
|
Company |
|
Consumer |
|
Domestic |
|
International |
|
Products |
Reported Sales Growth |
|
|
|
|
|
|
|
|
- |
Less: |
|
|
|
|
|
|
|
|
|
Acquisitions |
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
FX / Other |
- |
|
- |
|
|
|
- |
|
|
Divestitures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales Growth |
|
|
|
|
|
|
|
|
|
CHURCH & DWIGHT CO., INC. |
|||||||||||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Measures (Unaudited) |
|||||||||||||||||||||
(Dollars in millions, except per share data) |
|||||||||||||||||||||
|
For the quarter ended
|
|
For the quarter ended
|
|
Change |
||||||||||||||||
|
|
|
|
% of NS |
|
|
|
|
% of NS |
|
|
|
|
||||||||
Adjusted Gross Margin Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross Margin - Reported |
$ |
712.1 |
|
|
|
47.1 |
% |
|
$ |
638.9 |
|
|
|
43.9 |
% |
|
|
320 |
|
bps |
|
Tariff Ruling |
|
(26.1 |
) |
|
|
-1.7 |
% |
|
|
0.0 |
|
|
|
0.0 |
% |
|
|
-170 |
|
bps |
|
Gross Margin - Adjusted (non-GAAP) |
$ |
686.0 |
|
|
|
45.4 |
% |
|
$ |
638.9 |
|
|
|
43.9 |
% |
|
|
150 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the quarter ended
|
|
For the quarter ended
|
|
Change |
||||||||||||||||
|
|
|
|
% of NS |
|
|
|
|
% of NS |
|
|
|
|
||||||||
Adjusted SG&A Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SG&A - Reported |
$ |
222.8 |
|
|
|
14.7 |
% |
|
$ |
213.1 |
|
|
|
14.6 |
% |
|
|
10 |
|
bps |
|
Hero Restricted Stock |
|
(5.2 |
) |
|
|
-0.3 |
% |
|
|
(7.3 |
) |
|
|
-0.4 |
% |
|
|
10 |
|
bps |
|
SG&A - Adjusted (non-GAAP) |
$ |
217.6 |
|
|
|
14.4 |
% |
|
$ |
205.8 |
|
|
|
14.2 |
% |
|
|
20 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the quarter ended
|
|
For the quarter ended
|
|
Change |
||||||||||||||||
Adjusted Income From Operations |
|
|
|
% of NS |
|
|
|
|
% of NS |
|
|
|
|
||||||||
Income From Operations - Reported |
$ |
336.9 |
|
|
|
22.3 |
% |
|
$ |
293.6 |
|
|
|
20.2 |
% |
|
|
210 |
|
bps |
|
Hero Restricted Stock |
|
5.2 |
|
|
|
0.3 |
% |
|
|
7.3 |
|
|
|
0.4 |
% |
|
|
-10 |
|
bps |
|
Tariff Ruling |
|
(26.1 |
) |
|
|
-1.7 |
% |
|
|
0.0 |
|
|
|
0.0 |
% |
|
|
-170 |
|
bps |
|
Income From Operations - Adjusted (non-GAAP) |
$ |
316.0 |
|
|
|
20.9 |
% |
|
$ |
300.9 |
|
|
|
20.6 |
% |
|
|
30 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the quarter ended
|
|
For the quarter ended
|
|
Change |
||||||||||||||||
Adjusted Diluted Earnings Per Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted Earnings Per Share - Reported |
$ |
0.99 |
|
|
|
|
|
$ |
0.89 |
|
|
|
|
|
|
11.2 |
% |
|
|||
Hero Restricted Stock |
|
0.02 |
|
|
|
|
|
|
0.03 |
|
|
|
|
|
|
|
|
||||
Tariff Ruling |
|
(0.08 |
) |
|
|
|
|
|
0.00 |
|
|
|
|
|
|
|
|
||||
Diluted Earnings Per Share - Adjusted (non-GAAP) |
$ |
0.93 |
|
|
|
|
|
$ |
0.92 |
|
|
|
|
|
|
1.1 |
% |
|
|||
Reported and Organic Forecasted Sales Reconciliation |
|||
|
|
|
|
|
For the Quarter |
|
For the Year |
|
Ended |
|
Ended |
|
September 30, 2024 |
|
December 31, 2024 |
Reported Sales Growth |
|
|
|
Acquisition |
- |
|
- |
Divestiture/Other |
|
|
|
FX |
|
|
|
|
|
|
|
Organic Sales Growth |
|
|
|
|
For the quarter ended
|
|
For the quarter ended
|
|
Change |
||||||
Adjusted Diluted Earnings Per Share Reconciliation (Forecasted) |
|
|
|
|
|
|
|
|
|||
Diluted Earnings Per Share - Reported |
$ |
0.65 |
|
|
$ |
0.71 |
|
|
|
-8.5 |
% |
Hero Restricted Stock |
|
0.02 |
|
|
|
0.03 |
|
|
|
|
|
Diluted Earnings Per Share - Adjusted (non-GAAP) |
$ |
0.67 |
|
|
$ |
0.74 |
|
|
|
-9.5 |
% |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
For the year ended
|
|
For the year ended
|
|
Change |
||||||
Adjusted Diluted Earnings Per Share Reconciliation (Forecasted) |
|
|
|
|
|
|
|
|
|||
Diluted Earnings Per Share - Reported |
|
|
|
$ |
3.05 |
|
|
|
% |
||
Hero Restricted Stock |
|
0.08 |
|
|
|
0.12 |
|
|
|
|
|
Tariff Ruling |
|
(0.08 |
) |
|
|
0.00 |
|
|
|
|
|
Diluted Earnings Per Share - Adjusted (non-GAAP) |
|
|
|
$ |
3.17 |
|
|
|
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240802598571/en/
Rick Dierker
Chief Financial Officer
609-806-1200
Source: Church & Dwight Co., Inc.
FAQ
What were Church & Dwight's net sales for Q2 2024?
How did Church & Dwight's reported EPS perform in Q2 2024?
What are Church & Dwight's full-year 2024 projections for net sales growth?
What is the outlook for Church & Dwight's cash from operations in 2024?