[Q1 2024 Performance Highlights](index=1&type=section&id=Q1%202024%20Performance%20Highlights) The company reported strong first-quarter results, exceeding outlooks with robust growth in sales, gross margin, and adjusted earnings per share across all divisions [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Church & Dwight exceeded Q1 2024 outlook, reporting strong growth in net sales, gross margin, and adjusted EPS Q1 2024 Key Financial Metrics | Metric | Q1 2024 Result | YoY Growth | Note | | :--- | :--- | :--- | :--- | | Net Sales | $1,503.3 million | +5.1% | Exceeded Outlook | | Organic Sales | - | +5.2% | Driven by Volume (+3.7%) and Price/Mix (+1.5%) | | Gross Margin | 45.7% | +220 basis points | Due to Productivity, Volume, Mix, and Pricing | | Reported EPS | $0.93 | +13.4% | - | | Adjusted EPS | $0.96 | +12.9% | Exceeded Outlook of $0.85 | - The strong performance was broad-based, with all three divisions (Domestic, International, Specialty Products) delivering **robust organic growth**[9](index=9&type=chunk)[35](index=35&type=chunk) - Global online sales grew to **20.5% of total consumer sales** in Q1, representing a **14.9% dollar increase** compared to Q1 2023[35](index=35&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) All consumer segments and Specialty Products delivered strong organic sales growth, contributing to overall company performance [Consumer Domestic](index=3&type=section&id=Consumer%20Domestic) Consumer Domestic net sales increased 4.3% to $1,165.2 million, driven by volume and price/mix, led by key brands Consumer Domestic Q1 2024 Performance | Metric | Value | Growth Drivers | | :--- | :--- | :--- | | Net Sales | $1,165.2 million | +4.3% | | Organic Sales Growth | +4.3% | Volume (+3.3%), Price/Mix (+1.0%) | | Leading Brands | - | THERABREATH™, HERO™, ARM & HAMMER™ Cat Litter & Baking Soda, XTRA™, BATISTE™ | [Consumer International](index=3&type=section&id=Consumer%20International) Consumer International net sales grew 10.6% to $255.0 million, with 8.8% organic growth driven by volume and price/mix Consumer International Q1 2024 Performance | Metric | Value | Growth Drivers | | :--- | :--- | :--- | | Net Sales | $255.0 million | +10.6% | | Organic Sales Growth | +8.8% | Volume (+5.4%), Price/Mix (+3.4%) | | Leading Brands | - | STERIMAR™, HERO, THERABREATH | [Specialty Products](index=3&type=section&id=Specialty%20Products) Specialty Products net sales increased 1.0% to $83.1 million, with strong 7.2% organic growth from price/mix and volume Specialty Products Q1 2024 Performance | Metric | Value | Growth Drivers | | :--- | :--- | :--- | | Net Sales | $83.1 million | +1.0% | | Organic Sales Growth | +7.2% | Price/Mix (+4.2%), Volume (+3.0%) | [Financial Position and Operations](index=3&type=section&id=Financial%20Position%20and%20Operations) The company expanded gross margins, increased strategic investments, and maintained a solid financial position with healthy cash flow [Margins and Expenses](index=3&type=section&id=Margins%20and%20Expenses) Gross margin expanded 220 basis points to 45.7%, with increased marketing and adjusted SG&A reflecting strategic investments - Gross margin increased **220 basis points to 45.7%** due to improved productivity, volume, mix, and pricing, net of higher manufacturing costs[5](index=5&type=chunk) - Marketing expense increased by **$29.7 million to $152.0 million**, representing **10.1% of net sales** (a **150 basis points increase**)[38](index=38&type=chunk) - Adjusted SG&A was **$222.7 million**, or **14.8% of net sales**, an **80 basis point increase** due to investments in International and R&D[12](index=12&type=chunk) [Cash Flow and Balance Sheet](index=3&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Cash from operations was $263.0 million, with $349.7 million cash and $2.2 billion total debt, and increased capital expenditures - Cash from operations was **$263.0 million**, a slight decrease from the prior year as higher earnings were offset by higher working capital[7](index=7&type=chunk) - Capital expenditures were **$46.3 million**, a **$21.3 million increase** from the prior year[7](index=7&type=chunk) - As of March 31, 2024, the company held **$349.7 million in cash** and had **total debt of $2.2 billion**[14](index=14&type=chunk) [Strategic Initiatives](index=3&type=section&id=Strategic%20Initiatives) The company is expanding its global footprint through strategic acquisitions and driving growth through continuous product innovation [Acquisitions](index=3&type=section&id=Acquisitions) The company signed an agreement to acquire Graphico for $35 million, aiming to expand its business in Japan and APAC - Signed a definitive agreement to acquire Graphico, its Japan-based distributor, for approximately **$35 million**[3](index=3&type=chunk) - The acquisition is expected to facilitate greater expansion in Japan and the **APAC region** by bringing more Church & Dwight brands to Japanese consumers[36](index=36&type=chunk) [2024 New Products](index=3&type=section&id=2024%20New%20Products) Product innovation drives growth with successful 2024 launches across ARM & HAMMER™, THERABREATH™, HERO™, and BATISTE™ - ARM & HAMMER™ launched Power Sheets™ laundry detergent, now expanding to brick & mortar retailers, and a new premium Deep Clean™ liquid and unit dose detergent[43](index=43&type=chunk)[16](index=16&type=chunk) - THERABREATH™ entered the antiseptic mouthwash segment with its Deep Clean Oral Rinse, formulated to kill **99.9% of germs** without the burn[44](index=44&type=chunk) - HERO™ continues to innovate in the acne category with new patch solutions and adjacent products like the Dissolve Away Daily Cleansing Balm[45](index=45&type=chunk) - BATISTE™ introduced Sweat Activated and Touch Activated dry shampoos with advanced fragrance-release technology[18](index=18&type=chunk) [Outlook for 2024](index=5&type=section&id=Outlook%20for%202024) The company raised its full-year gross margin and EPS outlook, while providing specific guidance for Q2 2024 sales and earnings [Full Year 2024 Outlook](index=5&type=section&id=Full%20Year%202024%20Outlook) The company raised its full-year gross margin and Adjusted EPS outlook, maintaining sales growth forecast and projecting record cash flow Updated Full Year 2024 Guidance | Metric | Full Year 2024 Outlook | Previous Outlook | | :--- | :--- | :--- | | Reported & Organic Sales Growth | ~4% to 5% | Unchanged | | Gross Margin Expansion | ~75 basis points | 50 to 75 basis points | | Adjusted EPS Growth | 8% to 9% | 7% to 9% | | Reported EPS Growth | 9.5% to 10.5% | - | | Cash from Operations | ~$1.05 billion | ~$1.0 billion | - SG&A as a percent of sales is now expected to be **flat compared to 2023**, reflecting investments in International, e-commerce, and costs related to the Graphico acquisition[19](index=19&type=chunk) - Capital expenditures are expected to be approximately **$180 million** for 2024, returning to historical levels of **~2% of sales** in 2025[20](index=20&type=chunk) [Q2 2024 Outlook](index=7&type=section&id=Q2%202024%20Outlook) Q2 2024 outlook projects 3.5% reported sales growth and 4.0% organic growth, with moderate gross margin expansion but a decline in Adjusted EPS due to higher costs and tax rate Q2 2024 Guidance | Metric | Q2 2024 Outlook | YoY Change | | :--- | :--- | :--- | | Reported Sales Growth | ~3.5% | - | | Organic Sales Growth | ~4.0% | - | | Reported EPS | $0.81 | -9.0% | | Adjusted EPS | $0.83 | -9.8% | - The expected EPS decline is attributed to increased marketing, higher SG&A, and a significantly higher tax rate (**24% vs. 17.9% in Q2 2023**)[49](index=49&type=chunk) [Financial Statements & Non-GAAP Reconciliations](index=8&type=section&id=Financial%20Statements%20%26%20Non-GAAP%20Reconciliations) This section provides detailed consolidated financial statements and reconciliations of non-GAAP measures for transparent performance analysis [Condensed Consolidated Statements of Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net Sales for Q1 2024 increased to $1,503.3 million, with Gross Profit rising to $687.0 million and Net Income to $227.7 million Q1 2024 vs Q1 2023 Income Statement (in millions, except per share data) | Account | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net Sales | $1,503.3 million | $1,429.8 million | | Gross Profit | $687.0 million | $622.0 million | | Income from Operations | $305.0 million | $291.9 million | | Net Income | $227.7 million | $203.2 million | | Diluted EPS | $0.93 | $0.82 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Total Assets were $8,561.5 million, with Cash at $349.7 million, Total Liabilities decreasing, and Stockholders' Equity increasing Balance Sheet Highlights (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $1,534.3 million | $1,529.7 million | | Total Assets | $8,561.5 million | $8,569.2 million | | Total Current Liabilities | $1,151.1 million | $1,422.0 million | | Long-Term Debt | $2,202.8 million | $2,202.2 million | | Stockholders' Equity | $4,100.7 million | $3,855.4 million | [Condensed Consolidated Statements of Cash Flow](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Net cash from operating activities was $263.0 million, with $46.8 million used in investing and $209.1 million used in financing Cash Flow Summary (in millions) | Account | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $263.0 million | $273.1 million | | Net cash (used in) investing activities | $(46.8) million | $(29.6) million | | Net cash (used in) financing activities | $(209.1) million | $(311.7) million | | Net change in cash and cash equivalents | $5.2 million | $(67.5) million | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) The company provides non-GAAP measures like adjusted EPS and organic sales to offer a clearer view of underlying business trends - Management uses non-GAAP measures like organic sales growth to assess performance on a consistent basis, excluding impacts from acquisitions, divestitures, and foreign exchange[29](index=29&type=chunk)[52](index=52&type=chunk) Q1 2024 EPS Reconciliation | Metric | Value | | :--- | :--- | | Diluted EPS - Reported | $0.93 | | Hero Restricted Stock Adjustment | $0.03 | | Diluted EPS - Adjusted (non-GAAP) | $0.96 | Q1 2024 Organic Sales Growth Reconciliation | Segment | Reported Sales Growth | Organic Sales Growth | | :--- | :--- | :--- | | Total Company | 5.1% | 5.2% | | Consumer Domestic | 4.3% | 4.3% | | Consumer International | 10.6% | 8.8% | | Specialty Products | 1.0% | 7.2% |

Analysts on Wall Street project that Church & Dwight (CHD) will announce quarterly earnings of $0.86 per share in its forthcoming report, representing an increase of 1.2% year over year. Revenues are projected to reach $1.49 billion, increasing 4.3% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this p ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Church & Dwight (CHD) , which belongs to the Zacks Soap and Cleaning Materials industry, could be a great candidate to consider.This maker of household and personal products has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5. ...

Church & Dwight Co., Inc. (CHD) appears to be in a good spot, with its shares up 13.6% in the past six months compared with the industry’s growth of 6.3%. The consumer product behemoth has been benefiting from impressive demand, bolstered by consistent innovation, new product launches and strategic acquisitions, such as the Hero brand.Brand strength, efficient pricing and productivity gains have been working well for the company, which was evident in its fourth-quarter 2023 results, wherein the top and bott ...

Players in the Zacks Soap and Cleaning Materials industry continue to gain from solid demand for consumer products and brands, cost-saving efforts, and strong execution. The participants focused on transforming operations, digital commerce growth, innovation and brand building have been gaining amid macro hardships. Additionally, the companies in the industry have been benefiting from pricing actions, which have played key roles in uplifting the sales trends for them.Nevertheless, the companies continue to ...

Church & Dwight Co., Inc. (CHD) has established a robust position in the staple universe. The company’s success is attributed to robust consumer demand, bolstered by consistent innovation, new product launches and strategic acquisitions.  These upsides, along with efficient pricing and productivity gains, have been working well for the company. Encouragingly, management expects volumes to continue driving growth in 2024. However, elevated marketing costs and manufacturing cost inflation are a concerning fac ...

MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, today announced it has been selected by Church & Dwight Co., Inc. (NYSE: CHD) to strengthen the consumer goods company’s cybersecurity program. Church & Dwight chose Rockwell specifically to help build resiliency and minimize risks in its operational technology (OT) manufacturing security practices. The number of cyberattacks against manufacturing and ...

Church & Dwight (CHD) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indivi ...

The Wall Street rally that saw major indexes hit all-time highs in early February has suddenly come to a halt, with markets turning volatile again last week. A hotter-than-expected inflation data has dimmed hopes of a rate cut by the Federal Reserve anytime soon.Investor confidence took a further hit after the release of the minutes of the Federal Reserve’s January FOMC meeting on Feb 20. The minutes of the meeting suggest that the Federal Reserve is in no hurry to cut interest rates and it will go for the ...

Church & Dwight Co Inc (NYSE:CHD) Presents at CAGNY 2024 Conference (Transcript) February 22, 2024 3:00 PM ET Company Participants Matthew Farrell - President, CEO & Chairman Richard Dierker - CFO, Executive VP & Head of Business Operations Conference Call Participants Dara Mohsenian - Morgan Stanley Andrea Teixeira - JPMorgan Unidentified Company Representative Good afternoon, everybody, and welcome back. Our next presenters, Church & Dwight, have been longtime supporters of CAGNY in our conference. And to ...