Church & Dwight Co., Inc. (CHD) is likely to register top-line growth when it reports first-quarter 2025 earnings on May 1. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, suggesting an increase of 0.5% from the prior-year quarter.The consensus mark for first-quarter earnings has remained unchanged in the past 30 days at 89 cents per share, indicating a decline of 7.3% from the figure reported in the year-ago quarter. CHD has a trailing four-quarter earnings surprise of 9.6%, on averag ...

Core Viewpoint - Church & Dwight Co., Inc. (CHD) is currently overvalued with a forward 12-month price-to-earnings multiple of 28.23x, compared to the industry's average of 20x [1] Financial Performance - CHD's stock has increased by 1.6% over the past three months, while the industry has grown by 5% and the S&P 500 has declined by 3.7% [4] - Marketing expenses as a percentage of sales increased by 50 basis points in 2024, with expectations to exceed 11% of sales in 2025, potentially impacting near-term profitability [13] Business Strategy - Strong brand equity allows CHD to pass on cost increases to consumers with minimal demand impact, supporting profitability [6] - E-commerce is a significant growth driver, with online sales accounting for 21.4% of total revenues in Q4 2024, positioning CHD favorably in the digital space [7] - The company has a history of successful acquisitions, focusing on No. 1 or No. 2 brands with high margins, which reinforces its growth trajectory [8] - Over 50% of CHD's innovation pipeline is now focused on emerging categories, diversifying beyond traditional product lines [9] Challenges - CHD faces challenges from shifting consumer spending patterns, with management indicating that price increases are not currently feasible due to consumer exhaustion [12] - Rising marketing expenses and the inability to implement further price increases could pressure margins in the near term [14]

Sales and Revenue - In 2024, household products constituted approximately 55% of the Consumer Domestic sales and about 42% of the consolidated net sales[22]. - Personal care products represented approximately 45% of the Consumer Domestic sales and around 35% of the consolidated net sales in 2024[25]. - Total Consumer International net sales accounted for approximately 18% of the consolidated net sales in 2024, with no product line exceeding 20% of total international net sales[29]. - The Specialty Products Division accounted for approximately 5% of the consolidated net sales in 2024[32]. - Net sales of the MEGALAC business were $7.6 million in 2024, down from $38.1 million in 2023, following the exit from this segment[34]. - The Passport food safety business generated net sales of $6.4 million in 2024, compared to $13.0 million in 2023, prior to its sale in the second quarter of 2024[35]. - Walmart Inc. accounted for 23% of consolidated net sales in 2024, consistent with 2023 and down from 24% in 2022[55]. Acquisitions and Investments - The company acquired Graphico, Inc. for $19.9 million, net of cash acquired, and an additional $2.0 million for remaining minority shares in July 2024[20]. - The company has increased qualified dual sources of materials to approximately 60% of total spend on direct materials to enhance supply chain resilience[50]. - The cost of raw materials increased modestly in 2024 compared to 2023, which could materially impact financial results if costs cannot be passed to customers[51]. Market Competition and Distribution - The company competes with major brands such as Procter & Gamble, Colgate-Palmolive, and Unilever, which have greater financial resources[43]. - The company’s products are marketed through a broad distribution platform, including supermarkets, mass merchandisers, and e-commerce channels[45]. Regulatory Compliance - The company is subject to various regulations from agencies such as the FDA, EPA, and FTC, which govern product development, manufacturing, and marketing[56]. - The FDA's cGMP regulations apply to all facilities manufacturing OTC pharmaceutical products, with periodic audits to ensure compliance[67]. - The company markets over-the-counter pharmaceutical products that must conform to FDA monograph requirements, which include specific quality and labeling standards[65]. - Dietary supplements must comply with FDA regulations, including reporting serious adverse events associated with their use[74]. - New legislation may impose substantial regulatory requirements on dietary supplements, potentially affecting product formulation and market availability[75]. - The company’s products are subject to mandatory recalls under the Food Safety Modernization Act if certain conditions are met[69]. Employee and Community Engagement - As of December 31, 2024, the company had approximately 5,750 global employees, an increase of about 200 compared to December 31, 2023[86]. - The overall turnover rate for fiscal 2024 was approximately 15%, with revenue per employee at approximately $1.06 million[86]. - The company provided approximately $1.3 million in support to 237 community organizations through its Employee Giving Fund in 2024[95]. - The Church and Dwight Philanthropic Foundation awarded grants totaling approximately $1.3 million to eight organizations in 2024[96]. - Approximately 85% of the company's workforce is located in the Americas, 10% in Europe, Middle East, and Africa, and 5% in the Asia-Pacific region[86]. - The company launched several Employee Resource Groups (ERGs) in 2023 to promote diversity and inclusion[89]. - Employee safety and wellness remain top priorities, with policies in place to ensure compliance with OSHA standards[85]. - The company emphasizes a culture of diversity and inclusion to enhance long-term performance and innovation[87]. - The company invests in professional development and growth to improve employee performance and retention[92]. - The company offers competitive pay and a range of benefits, including health insurance and retirement plans, to attract and retain talent[93]. Environmental Sustainability - The company aims to minimize its environmental impact by focusing on renewable energy usage and reducing greenhouse gas emissions[79]. - The partnership with Tata Chemicals for soda ash supply enables the company to achieve economies of scale in sodium bicarbonate production[49]. - The company has adequate trona reserves to support sodium bicarbonate production for the foreseeable future[48]. - The company publishes an annual Sustainability Report detailing its ESG performance metrics and commitments, with the 2023 report available online[76].

Group 1 - The analyst assigned a hold rating to Church & Dwight Co. (NYSE: CHD) in November, citing that the stock was too expensive compared to its peers [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing a blend of value investing principles [1] - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term compounding of earnings and shareholder returns [1]

Company Overview - Church & Dwight Co., Inc. is hosting its 2025 Analyst Day, marking the 35th anniversary of its listing on the New York Stock Exchange [4]. Management Team - The event features a comprehensive management team, including Matt Farrell (Chairman, President, and CEO), Rick Dierker (CFO), and other key executives [2][3]. Event Details - The Analyst Day is attended by a significant number of participants, indicating strong interest in the company's future prospects [2].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported 3.5% sales growth, exceeding the outlook of 1.5% to 2.5% [24] - Full-year net sales growth was 4%, with organic sales growth at 4.5%, domestic growth at 3.5%, international growth at 9%, and SPD growth at 7% [26] - Gross margin improved by 110 basis points, returning to 2019 levels, and EPS grew by almost 19% [25][26] - The company generated $1.16 billion in cash, with a free cash flow conversion rate of around 115% [27] Business Line Data and Key Metrics Changes - The company has seven power brands that account for 70% of revenues and profits, with five of these brands growing in 2024 [35] - The laundry business is growing at or above category averages, with market share increasing from 5% to 14.5% over 18 years [37] - The HERO brand saw a 40% growth in consumption, while THERABREATH also experienced over 40% growth [41][42] - VITAFUSION vitamins faced a decline but is expected to stabilize with new product launches [46][47] Market Data and Key Metrics Changes - The international business grew by 19%, with sub-markets growing almost 5% [97] - The company operates in over 100 countries, with significant growth opportunities in international markets [96][101] - The brand portfolio is performing well globally, with strong growth in markets like Japan and Canada [109] Company Strategy and Development Direction - The company aims for 8% organic growth in international markets, leveraging its power brands and expanding its portfolio [94][101] - Innovation is a key focus, with over 50% of the pipeline coming from new sources, and the company is transforming its approach to R&D [88][92] - The company is strict about acquisitions, targeting number one or two brands with gross margins at or above company levels [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong performance across categories and a balanced portfolio [28][34] - The company is optimistic about household penetration opportunities in the U.S. and plans to continue investing in marketing and innovation [28][42] - The management highlighted the importance of e-commerce growth, which has increased from 2% to 21% [30] Other Important Information - The company has a long history of growth through acquisitions, with a focus on integrating and growing acquired brands [22][33] - The company is expanding its international presence, with rapid rollout plans for brands like HERO [105] - A new U.S. President and CFO are being hired to strengthen domestic operations [33] Q&A Session Summary Question: What is the outlook for the international business? - The international business is expected to continue growing at a fast pace, with a focus on leveraging power brands and expanding into new markets [94][101] Question: How is the company addressing the decline in VITAFUSION? - The company is launching a renovated portfolio and new products to revitalize the VITAFUSION brand, focusing on innovation and marketing support [46][47] Question: What are the key drivers of growth for the HERO brand? - HERO's growth is driven by strong consumption rates and increased distribution, with plans to invest further in marketing to enhance household penetration [41][42]

Church & Dwight Co., Inc. (CHD) reported solid fourth-quarter 2024 results, as the top and bottom lines increased year over year, and sales beat the Zacks Consensus Estimate.The company delivered another year of strong performance, underscoring the strength of its brands, the success of new product launches and a continued focus on execution. Organic growth was primarily driven by volume, a trend expected to persist into 2025. Global online sales formed 21.4% of total consumer sales in 2024. Strategic brand ...

Core Insights - Church & Dwight (CHD) reported $1.58 billion in revenue for Q4 2024, a year-over-year increase of 3.5% and a surprise of +1.22% over the Zacks Consensus Estimate of $1.56 billion [1] - The company's EPS for the same period was $0.77, compared to $0.65 a year ago, aligning with the consensus estimate [1] Revenue Performance - Total Consumer Net Sales reached $1.51 billion, exceeding the nine-analyst average estimate of $1.49 billion, reflecting a year-over-year change of +4.1% [4] - Consumer Domestic sales were $1.23 billion, slightly above the $1.22 billion estimate, marking a +2.7% change year-over-year [4] - Consumer International sales amounted to $285.10 million, surpassing the $273.57 million estimate, with a year-over-year increase of +10.2% [4] - Specialty Products Division sales were $71.20 million, below the $71.60 million estimate, showing a year-over-year decline of -6.6% [4] Segment Analysis - Consumer Domestic - Household Products generated $654.80 million, exceeding the $639.46 million estimate, with a year-over-year increase of +4.4% [4] - Consumer Domestic - Personal Care Products reported $570.90 million, slightly below the $577.65 million estimate, reflecting a +0.9% change year-over-year [4] Stock Performance - Church & Dwight shares returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +2.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Church & Dwight (CHD) reported quarterly earnings of $0.77 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.65 per share a year ago [1]. Financial Performance - The company posted revenues of $1.58 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.22%, compared to $1.53 billion in the same quarter last year [2]. - Over the last four quarters, Church & Dwight has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2]. Stock Performance - Church & Dwight shares have increased approximately 2.3% since the beginning of the year, while the S&P 500 has gained 3.2% [3]. - The current status of estimate revisions for Church & Dwight is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $1.55 billion, and for the current fiscal year, it is $3.73 on revenues of $6.31 billion [7]. - The outlook for the Consumer Products - Staples industry, to which Church & Dwight belongs, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8].

CHURCH & DWIGHT CO., INC. News Release Contact: Rick Dierker Chief Financial Officer 609-806-1200 CHURCH & DWIGHT REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS Q4 NET SALES, EPS AND CASH FROM OPERATIONS EXCEED OUTLOOK 2025 OUTLOOK: 3 to 4% NET SALES GROWTH, 7 to 8% ADJUSTED EPS GROWTH ANNOUNCES 4% DIVIDEND INCREASE | 2024 Fourth Quarter Results | 2024 Full Year Results | | --- | --- | | • Net Sales growth +3.5%: Domestic +2.7%, Int'l +10.2%, SPD | • Net Sales growth +4.1%; Organic Sales +4.6%¹ | | -6.6 ...