Core Viewpoint - Church & Dwight (CHD) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and showing an increase from $0.74 per share a year ago, indicating a 16.18% earnings surprise [1][2] Financial Performance - The company achieved revenues of $1.51 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.12% and up from $1.46 billion year-over-year [2] - Over the last four quarters, Church & Dwight has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance - Church & Dwight shares have increased approximately 5.7% since the beginning of the year, while the S&P 500 has gained 19.6%, indicating underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.86 for the coming quarter and $3.43 for the current fiscal year, alongside expected revenues of $1.57 billion and $6.08 billion respectively [7] - The Zacks Rank for Church & Dwight is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Soap and Cleaning Materials industry, to which Church & Dwight belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable industry outlook [8]

[Executive Summary & Q3 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q3%20Highlights) Church & Dwight exceeded Q3 2024 expectations with strong sales growth, gross margin expansion, and increased adjusted EPS, driven by robust consumer demand and strategic investments [Q3 2024 Performance Overview](index=1&type=section&id=Q3%202024%20Performance%20Overview) Church & Dwight exceeded its Q3 2024 outlook with stronger sales growth, gross margin expansion, and a 6.8% increase in adjusted EPS to $0.79, driven by robust consumer demand Q3 2024 Key Performance Metrics | Metric | Q3 2024 Performance | Outlook/Change | | :----- | :------------------ | :------------- | | Net Sales | +3.8% to $1,510.6M | Exceeded outlook | | Organic Sales | +4.3% | - | | Adjusted Gross Margin | +60 bps | Exceeded outlook | | Reported Loss per Share | -$0.31 | Due to impairment | | Adjusted EPS | $0.79 (+6.8%) | Exceeded outlook of $0.67 | | YTD Cash from Operations | $863.9M | - | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Matthew Farrell attributed strong Q3 results to brand strength, new product success, and execution, with volume driving organic growth and increased marketing boosting consumption and online sales - Volume was the primary driver of organic growth in Q3, a trend expected to continue in Q4[2](index=2&type=chunk) - Marketing as a percentage of sales increased **80 basis points**, driving consumption and share gains[2](index=2&type=chunk) - Global online sales grew to **20.7% of total consumer sales** in Q3[2](index=2&type=chunk) [Third Quarter Detailed Review](index=2&type=section&id=Third%20Quarter%20Review) This section provides a detailed breakdown of the company's financial performance across divisions, gross margin, and operating expenses for the third quarter [Consumer Domestic Division](index=2&type=section&id=Consumer%20Domestic%20net%20sales) Consumer Domestic net sales grew 3.3% to $1,170.8 million, driven by personal care, with organic sales also up 3.3% from volume and price/mix contributions Consumer Domestic Division Q3 2024 Performance | Metric | Q3 2024 Performance | | :----- | :------------------ | | Net Sales | $1,170.8 million | | Net Sales Growth | +3.3% | | Organic Sales Growth | +3.3% | | Volume Contribution | +2.6% | | Price & Product Mix Contribution | +0.7% | - Growth was led by HERO™ acne products, THERABREATH™ mouthwash, ZICAM™ supplements, SPINBRUSH™ toothbrushes, and ARM & HAMMER™ Scent Boosters[4](index=4&type=chunk) [Consumer International Division](index=2&type=section&id=Consumer%20International%20net%20sales) Consumer International net sales increased 9.5% to $267.7 million, with organic sales growing 8.1% driven by volume and positive price/mix, led by key brands Consumer International Division Q3 2024 Performance | Metric | Q3 2024 Performance | | :----- | :------------------ | | Net Sales | $267.7 million | | Net Sales Growth | +9.5% | | Organic Sales Growth | +8.1% | | Volume Contribution | +5.3% | | Price & Product Mix Contribution | +2.8% | - Growth was led by HERO, THERABREATH and OXICLEAN™[5](index=5&type=chunk) [Specialty Products Division](index=2&type=section&id=Specialty%20Products%20net%20sales) Specialty Products net sales decreased 8.0% to $72.1 million due to business exits, yet organic sales grew 7.5% from price/mix and volume, reflecting a profitable growth strategy Specialty Products Division Q3 2024 Performance | Metric | Q3 2024 Performance | | :----- | :------------------ | | Net Sales | $72.1 million | | Net Sales Growth | -8.0% | | Organic Sales Growth | +7.5% | | Price & Product Mix Contribution | +3.9% | | Volume Contribution | +3.6% | - The decrease in net sales reflects the exit of the Megalac business in Q1 and the food safety business in Q2, aligning with a strategy to focus on more profitable growth[3](index=3&type=chunk)[5](index=5&type=chunk) [Gross Margin Analysis](index=2&type=section&id=Gross%20margin%20increased%2080%20basis%20points) Reported gross margin increased 80 basis points to 45.2%, with adjusted gross margin expanding 60 basis points to 45.0%, driven by productivity, higher volumes, and favorable mix Gross Margin Performance | Metric | Q3 2024 | Q3 2023 | Change (bps) | | :----- | :------ | :------ | :----------- | | Reported Gross Margin | 45.2% | 44.4% | +80 | | Adjusted Gross Margin | 45.0% | 44.4% | +60 | - Gross margin improvement was due to improved productivity, the benefit of higher volumes and mix, net of the impact of higher manufacturing costs[6](index=6&type=chunk) [Marketing Expense](index=2&type=section&id=Marketing%20expense%20was%20%24185.8%20million) Marketing expense increased by $18.0 million to $185.8 million, representing 12.3% of net sales, an 80 basis point increase reflecting strategic investment in brands Marketing Expense Overview | Metric | Q3 2024 | Q3 2023 | Change | | :----- | :------ | :------ | :----- | | Marketing Expense | $185.8M | $167.8M | +$18.0M | | Marketing % of Net Sales | 12.3% | 11.5% | +80 bps | [Selling, General, and Administrative Expense (SG&A)](index=2&type=section&id=Selling%2C%20general%2C%20and%20administrative%20expense%20%28SG%26A%29) Reported SG&A was $231.7 million, with adjusted SG&A at $226.9 million (15.0% of net sales), a 20 basis point increase driven by investments in International, R&D, and IT SG&A Expense Overview | Metric | Q3 2024 | Q3 2023 | Change (bps) | | :----- | :------ | :------ | :----------- | | Reported SG&A | $231.7M | $222.7M | - | | Adjusted SG&A | $226.9M | $215.4M | - | | Adjusted SG&A % of Net Sales | 15.0% | 14.8% | +20 | - The increase in adjusted SG&A was primarily due to investments in International, R&D, and IT[7](index=7&type=chunk) [Income from Operations](index=2&type=section&id=Income%20from%20Operations%20was%20a%20loss%20of%20%2491.5%20million) The company reported an Income from Operations loss of $91.5 million due to an impairment charge, while adjusted Income from Operations increased 1.6% to $267.2 million despite higher investments Income from Operations Performance | Metric | Q3 2024 | Q3 2023 | Change | | :----- | :------ | :------ | :----- | | Reported Income from Operations | -$91.5M | $255.8M | - | | Adjusted Income from Operations | $267.2M | $263.1M | +1.6% | - The reported loss was due to the non-cash impairment charge, while adjusted income from operations increased despite higher marketing and SG&A investments[8](index=8&type=chunk) [Other Expense](index=2&type=section&id=Other%20Expense%20decreased%20%2411.9%20million) Other Expense decreased by $11.9 million, with adjusted other expense down $7.3 million, primarily due to lower outstanding debt and higher interest income Other Expense Performance | Metric | Q3 2024 | Q3 2023 | Change | | :----- | :------ | :------ | :----- | | Reported Other Expense, net | -$12.9M | -$23.5M | -$10.6M | | Adjusted Other Expense, net | -$14.5M | -$21.8M | -$7.3M | - The decrease in adjusted other expense was primarily due to lower outstanding debt and higher interest income[8](index=8&type=chunk) [Tax Rate](index=2&type=section&id=There%20was%20a%20tax%20benefit%20in%20Q3%20of%2025.9%25) The company recorded a 25.9% tax benefit in Q3 due to vitamin impairment, resulting in an effective tax rate of 23.8% (excluding impairment), with the full-year adjusted rate now expected at 22.5% Tax Rate Overview | Metric | Q3 2024 | Q3 2023 | | :----- | :------ | :------ | | Reported Tax Benefit | 25.9% | - | | Effective Tax Rate (excl. impairment) | 23.8% | 24.1% | | Full Year Adjusted Effective Tax Rate Outlook | ~22.5% | ~23% (previous) | [Operating Cash Flow](index=2&type=section&id=Operating%20Cash%20Flow) Cash from operations for the first nine months of 2024 increased by $68.8 million to $863.9 million, with the full-year outlook raised to $1.1 billion, while capital expenditures also increased Operating Cash Flow and Capital Expenditures | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Change | | :----- | :-------------------------- | :-------------------------- | :----- | | Cash from Operations | $863.9M | $795.1M | +$68.8M | | Capital Expenditures | $125.2M | $121.5M | +$3.7M | - Full year cash flow from operations is now expected to be approximately **$1.1 billion** (previously $1.08 billion)[1](index=1&type=chunk)[10](index=10&type=chunk)[21](index=21&type=chunk) - At September 30, 2024, cash on hand was **$752.1 million**, while total debt was **$2.2 billion**[10](index=10&type=chunk) [Intangible Asset Impairment](index=2&type=section&id=Intangible%20Asset%20Impairment) Church & Dwight recorded a **$357.1 million** pre-tax non-cash impairment charge in Q3 on assets from its 2012 vitamin business acquisition, reflecting reduced long-term growth expectations Q3 2024 Impairment Charges | Metric | Q3 2024 Impairment | | :----- | :----------------- | | Pre-tax Impairment Charge | $357.1M | | After-tax Impairment Charge | $270.1M | - The impairment charge was due to a reduction in the Company's expectations about the long-term growth and profit outlook for the VMS business (vitamin business)[11](index=11&type=chunk) [2024 New Product Launches](index=3&type=section&id=2024%20New%20Products) Product innovation remains a key driver, with several new launches in 2024 across major brands aimed at meeting consumer demands, expanding market share, and enhancing value - ARM & HAMMER™ Laundry launched Deep Clean™ Liquid and Unit Dose Laundry Detergent, entering the mid-tier category with superior clean[12](index=12&type=chunk) - ARM & HAMMER™ Laundry POWER SHEETS™ Laundry Detergent, initially launched online, is now available in select brick & mortar retailers due to online success, offering an effective, convenient, and plastic-bottle-waste-eliminating solution[13](index=13&type=chunk) - ARM & HAMMER™ Hardball™ Clumping Litter expanded nationally, a plant-based, lightweight litter designed for no-mess scooping to capture greater share in the lightweight litter category[14](index=14&type=chunk) - THERABREATH™ entered the antiseptic segment with Deep Clean Oral Rinse, formulated to kill **99.9% of germs** without the burn[15](index=15&type=chunk) - BATISTE™ launched Sweat Activated and Touch Activated dry shampoos, offering longer-lasting results with advanced fragrance-release technology[16](index=16&type=chunk) - HERO™ continues to drive acne category growth as the **1 patch brand**, launching innovative solutions like Dissolve Away Daily Cleansing Balm to broaden offerings for acne-prone skin[17](index=17&type=chunk) [Full Year 2024 Outlook](index=3&type=section&id=Outlook%20for%202024) The company provides its full-year 2024 outlook for sales, gross margin, marketing investments, EPS, and cash flow, along with specific Q4 projections [Sales Outlook](index=3&type=section&id=Sales%20Outlook) Despite cautious Q4 consumer growth, Church & Dwight affirms its full-year reported sales growth outlook of approximately **3.5%** and organic sales growth of approximately **4%** Full Year 2024 Sales Outlook | Metric | Full Year 2024 Outlook | | :----- | :--------------------- | | Reported Sales Growth | ~3.5% | | Organic Sales Growth | ~4.0% | [Gross Margin Outlook](index=3&type=section&id=Gross%20Margin%20Outlook) The company is raising its full-year adjusted gross margin expansion outlook to approximately **110 basis points**, driven by pricing, improved mix, higher volume, and productivity, offsetting manufacturing costs Full Year 2024 Gross Margin Outlook | Metric | Full Year 2024 Outlook | Previous Outlook | | :----- | :--------------------- | :--------------- | | Adjusted Gross Margin Expansion | ~110 bps | 100-110 bps | [Marketing & SG&A Investment Outlook](index=3&type=section&id=Marketing%20%26%20SG%26A%20Investment%20Outlook) Church & Dwight plans continued investment in brands, expecting marketing as a percentage of sales to be above **11%**, with Q4 investments aimed at driving future growth and 2025 momentum Full Year 2024 Marketing Outlook | Metric | Full Year 2024 Outlook | Previous Outlook | | :----- | :--------------------- | :--------------- | | Marketing as % of Sales | >11% | ~11% | - Q4 investments will focus on driving future growth with higher marketing and SG&A investments to build momentum for 2025[20](index=20&type=chunk) [EPS Outlook](index=4&type=section&id=EPS%20Outlook) Full-year reported EPS is expected to decline approximately **23%** due to impairment, while adjusted EPS growth is anticipated at approximately **8%**, with an adjusted tax rate of **22.5%** Full Year 2024 EPS Outlook | Metric | Full Year 2024 Outlook | | :----- | :--------------------- | | Reported EPS Growth | ~-23% | | Adjusted EPS Growth | ~+8% | | Adjusted Tax Rate | ~22.5% | [Cash Flow & Capital Expenditures Outlook](index=4&type=section&id=Cash%20flow%20from%20operations%20is%20now%20expected) Cash flow from operations is now expected at approximately **$1.1 billion**, with capital expenditures projected at **$180 million** for 2024, and a continued focus on accretive acquisitions Full Year 2024 Cash Flow & Capital Expenditures Outlook | Metric | Full Year 2024 Outlook | Previous Outlook | | :----- | :--------------------- | :--------------- | | Cash Flow from Operations | ~$1.1B | ~$1.08B | | Capital Expenditures | ~$180M | - | - Capital spending is expected to return to historical levels (approximately **2% of sales**) in 2025[22](index=22&type=chunk) - Capital allocation priorities remain unchanged, with an emphasis on pursuing accretive acquisitions of fast-moving consumable products (e.g., ZICAM, THERABREATH, and HERO)[22](index=22&type=chunk) [Q4 2024 Specific Outlook](index=4&type=section&id=For%20Q4%2C%20we%20expect%20reported%20sales%20growth) For Q4 2024, reported sales growth is expected at **1.5-2.5%** and organic sales growth at **2-3%**, with adjusted EPS projected at **$0.76**, a **17%** increase year-over-year Q4 2024 Outlook | Metric | Q4 2024 Outlook | | :----- | :-------------- | | Reported Sales Growth | 1.5-2.5% | | Organic Sales Growth | 2-3% | | Reported EPS | $0.75 | | Adjusted EPS | $0.76 (+17% YoY) | [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides details on the Q3 webcast, company profile, sustainability efforts, and important disclosures regarding forward-looking statements and non-GAAP financial measures [Webcast Details](index=4&type=section&id=Church%20%26%20Dwight%20Co.%2C%20Inc.%20%28NYSE%3A%20CHD%29%20will%20host%20a%20webcast) Church & Dwight hosted a webcast on November 1, 2024, at 10:00 a.m. (ET) to discuss Q3 2024 results, with a replay available until November 8, 2024 - Webcast for Q3 2024 results was held on November 1, 2024, at 10:00 a.m. (ET) and was available for replay until November 8, 2024[24](index=24&type=chunk) [Company Profile & Brands](index=4&type=section&id=Church%20%26%20Dwight%20Co.%2C%20Inc.%20%28NYSE%3A%20CHD%29%20founded%20in%201846) Founded in 1846, Church & Dwight Co., Inc. (NYSE: CHD) is a leading U.S. producer of sodium bicarbonate, marketing a wide range of personal care, household, and specialty products under well-known brands - Church & Dwight is the leading U.S. producer of sodium bicarbonate (baking soda)[25](index=25&type=chunk) - Key brands include ARM & HAMMER®, TROJAN®, OXICLEAN®, SPINBRUSH®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, L'IL CRITTERS®, VITAFUSION®, BATISTE®, WATERPIK®, ZICAM®, THERABREATH®, and HERO®[25](index=25&type=chunk) [Sustainability Initiatives](index=4&type=section&id=Church%20%26%20Dwight%20has%20a%20heritage%20of%20commitment%20to%20people%20and%20the%20planet) Church & Dwight demonstrates a long-standing commitment to sustainability, evidenced by early recycled packaging and phosphate-free detergents, earning recognition on various environmental and responsibility lists - Company has a heritage of commitment to people and the planet, using recycled paperboard since early 1900s and launching the first nationally distributed, phosphate-free detergent in 1970[26](index=26&type=chunk) - Recognized on Newsweek's America's Most Responsible and America's Greenest Companies lists, EPA's Green Power Partnership-Top 100 list, and the FTSE4Good Index Series in 2023[26](index=26&type=chunk) [Forward-Looking Statements](index=4&type=section&id=This%20press%20release%20contains%20forward-looking%20statements) This press release contains forward-looking statements subject to various risks and uncertainties, including market conditions, raw material prices, and regulatory changes, advising investors to consult 10-K and 10-Q filings for detailed risk factors - Forward-looking statements are subject to risks and uncertainties, including market growth, economic conditions, raw material and energy prices, competition, and regulatory changes[27](index=27&type=chunk)[28](index=28&type=chunk) - Investors should consult Item 1A, 'Risk Factors' in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q for additional factors[29](index=29&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=This%20press%20release%20also%20contains%20non-GAAP%20financial%20information) The press release includes non-GAAP financial measures, used by management for internal analysis and provided for investor insight, with reconciliations to GAAP measures, but should not be considered in isolation - Non-GAAP measures are used by management for internal analysis and are believed to be informative for investors to gauge financial performance and identify trends[30](index=30&type=chunk) - Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included at the end of the release[30](index=30&type=chunk) - Non-GAAP measures should not be considered in isolation or as a substitute for GAAP measures and may differ from similar measures provided by other companies[30](index=30&type=chunk) [Financial Statements & Reconciliations](index=6&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents the condensed consolidated financial statements and reconciliations of non-GAAP measures for the quarter and nine months ended September 30, 2024 [Condensed Consolidated Statements of (Loss) Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20%28Loss%29%20Income%20%28Unaudited%29) The condensed consolidated statements of (loss) income show a Q3 2024 net loss of **$75.1 million** due to a **$357.1 million** impairment charge, impacting nine-month net income which fell to **$396.1 million** Condensed Consolidated Statements of (Loss) Income (Unaudited) | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net Sales | $1,510.6 | $1,455.9 | $4,525.1 | $4,339.9 | | Gross Profit | $683.1 | $646.3 | $2,082.2 | $1,907.2 | | Tradename and other asset impairments | $357.1 | $0.0 | $357.1 | $0.0 | | (Loss) Income from Operations | $(91.5) | $255.8 | $550.4 | $841.3 | | Net (Loss) Income | $(75.1) | $177.5 | $396.1 | $601.9 | | Net (Loss) Income per share - Diluted | $(0.31) | $0.71 | $1.61 | $2.43 | | Dividends per share | $0.28 | $0.27 | $0.85 | $0.82 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) As of September 30, 2024, total assets increased to **$8,666.2 million** from **$8,569.2 million** at year-end 2023, primarily due to a rise in cash, offset by a decrease in intangibles from impairment Condensed Consolidated Balance Sheets (Unaudited) | Metric (in millions) | Sep 30, 2024 | Dec 31, 2023 | | :------------------- | :----------- | :----------- | | Cash and Cash Equivalents | $752.1 | $344.5 | | Total Current Assets | $2,016.7 | $1,529.7 | | Trade Names and Other Intangibles | $2,919.7 | $3,302.3 | | Total Assets | $8,666.2 | $8,569.2 | | Total Current Liabilities | $1,246.6 | $1,422.0 | | Long-Term Debt | $2,208.2 | $2,202.2 | | Stockholders' Equity | $4,193.7 | $3,855.4 | | Total Liabilities and Stockholders' Equity | $8,666.2 | $8,569.2 | [Condensed Consolidated Statements of Cash Flow](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow%20%28Unaudited%29) For the nine months ended September 30, 2024, net cash from operating activities increased to **$863.9 million**, with net cash used in investing and financing activities leading to a **$407.6 million** net change in cash Condensed Consolidated Statements of Cash Flow (Unaudited) | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------- | :----------------------------- | :----------------------------- | | Net Income | $396.1 | $601.9 | | Tradename and other asset impairments | $357.1 | $0.0 | | Net cash from operating activities | $863.9 | $795.1 | | Net cash (used in) investing activities | $(138.1) | $(128.4) | | Net cash (used in) financing activities | $(318.3) | $(363.0) | | Net change in cash and cash equivalents | $407.6 | $303.0 | [Product Line Net Sales](index=9&type=section&id=2024%20and%202023%20Product%20Line%20Net%20Sales) For Q3 2024, total net sales grew **3.8%** to **$1,510.6 million**, driven by Consumer Domestic and International growth, while nine-month total net sales increased **4.3%** to **$4,525.1 million** 2024 and 2023 Product Line Net Sales (in millions) | Product Line | Q3 2024 Net Sales (M) | Q3 2023 Net Sales (M) | Q3 Change (%) | 9M 2024 Net Sales (M) | 9M 2023 Net Sales (M) | 9M Change (%) | | :----------- | :-------------------- | :-------------------- | :------------ | :-------------------- | :-------------------- | :------------ | | Household Products | $637.4 | $636.2 | 0.2% | $1,929.5 | $1,857.0 | 3.9% | | Personal Care Products | $533.4 | $496.9 | 7.3% | $1,577.1 | $1,521.2 | 3.7% | | Consumer Domestic | $1,170.8 | $1,133.1 | 3.3% | $3,506.6 | $3,378.2 | 3.8% | | Consumer International | $267.7 | $244.4 | 9.5% | $786.4 | $716.9 | 9.7% | | Total Consumer Net Sales | $1,438.5 | $1,377.5 | 4.4% | $4,293.0 | $4,095.1 | 4.8% | | Specialty Products Division | $72.1 | $78.4 | -8.0% | $232.1 | $244.8 | -5.2% | | Total Net Sales | $1,510.6 | $1,455.9 | 3.8% | $4,525.1 | $4,339.9 | 4.3% | [Organic Sales Reconciliation](index=9&type=section&id=Organic%20Sales%20Growth) Organic sales growth for Q3 2024 was **4.3%** for the total company, with Consumer International leading at **8.1%**, while nine-month total company organic sales growth reached **4.7%** Organic Sales Growth Reconciliation | Segment | 9 Months Ended Sep 30, 2024 Organic Sales Growth | 3 Months Ended Sep 30, 2024 Organic Sales Growth | | :------ | :----------------------------------------------- | :----------------------------------------------- | | Total Company | 4.7% | 4.3% | | Worldwide Consumer | 4.7% | 4.2% | | Consumer Domestic | 3.8% | 3.3% | | Consumer International | 8.7% | 8.1% | | Specialty Products | 6.1% | 7.5% | [Adjusted Gross Margin Reconciliation](index=9&type=section&id=Adjusted%20Gross%20Margin) For Q3 2024, reported gross margin was **45.2%**, with adjusted gross margin at **45.0%**, representing a **60 basis point** increase from Q3 2023 after a tariff ruling adjustment Adjusted Gross Margin Reconciliation | Metric | Q3 2024 | Q3 2023 | Change (bps) | | :----- | :------ | :------ | :----------- | | Gross Margin - Reported | 45.2% | 44.4% | +80 | | Tariff Ruling Adjustment | -0.2% | 0.0% | -20 | | Gross Margin - Adjusted (non-GAAP) | 45.0% | 44.4% | +60 | [Adjusted SG&A Reconciliation](index=9&type=section&id=Adjusted%20Selling%2C%20General%2C%20and%20Administrative%20Expense%20%28SG%26A%29) For Q3 2024, reported SG&A was **15.3%** of net sales, with adjusted SG&A at **15.0%**, a **20 basis point** increase from Q3 2023 after Hero Restricted Stock adjustments Adjusted Selling, General, and Administrative Expense (SG&A) Reconciliation | Metric | Q3 2024 | Q3 2023 | Change (bps) | | :----- | :------ | :------ | :----------- | | SG&A - Reported % of NS | 15.3% | 15.3% | 0 | | Hero Restricted Stock Adjustment % of NS | -0.3% | -0.5% | +20 | | SG&A - Adjusted (non-GAAP) % of NS | 15.0% | 14.8% | +20 | [Adjusted Income From Operations Reconciliation](index=9&type=section&id=Adjusted%20Income%20from%20Operations) For Q3 2024, reported Income from Operations was a loss of **$91.5 million** (-6.1% of net sales), while adjusted Income from Operations was **$267.2 million** (17.7% of net sales), a **40 basis point** decrease from Q3 2023 Adjusted Income from Operations Reconciliation | Metric | Q3 2024 % of NS | Q3 2023 % of NS | Change (bps) | | :----- | :-------------- | :-------------- | :----------- | | (Loss) Income From Operations - Reported | -6.1% | 17.6% | -2370 | | Hero Restricted Stock Adjustment | 0.3% | 0.5% | -20 | | Tradename and other asset impairments Adjustment | 23.7% | 0.0% | +2370 | | Tariff Ruling Adjustment | -0.2% | 0.0% | -20 | | Income From Operations - Adjusted (non-GAAP) | 17.7% | 18.1% | -40 | [Adjusted Other Income (expense) Reconciliation](index=10&type=section&id=Adjusted%20Other%20Income%20%28expense%29) For Q3 2024, reported other income (expense), net, was **$(9.9) million** (-0.7% of net sales), with adjusted other income (expense), net, at **$(14.5) million** (-1.0% of net sales), a **50 basis point** improvement from Q3 2023 Adjusted Other Income (expense) Reconciliation | Metric | Q3 2024 % of NS | Q3 2023 % of NS | Change (bps) | | :----- | :-------------- | :-------------- | :----------- | | Other income (expense), net - Reported | -0.7% | -1.5% | +80 | | Tariff Ruling Adjustment | -0.3% | 0.0% | -30 | | Other income (expense) - Adjusted (non-GAAP) | -1.0% | -1.5% | +50 | [Adjusted Diluted Earnings Per Share Reconciliation](index=10&type=section&id=Adjusted%20EPS) For Q3 2024, reported diluted EPS was **$(0.31)**, while adjusted diluted EPS was **$0.79**, a **6.8%** increase from Q3 2023 after various adjustments Adjusted Diluted Earnings Per Share Reconciliation | Metric | Q3 2024 | Q3 2023 | Change (%) | | :----- | :------ | :------ | :--------- | | Diluted (Loss) Earnings Per Share - Reported | $(0.31) | $0.71 | -143.7% | | Hero Restricted Stock Adjustment | $0.02 | $0.03 | - | | Tradename and other asset impairments Adjustment | $1.10 | $0.00 | - | | Tariff Ruling Adjustment | $(0.02) | $0.00 | - | | Diluted Earnings Per Share - Adjusted (non-GAAP) | $0.79 | $0.74 | +6.8% | [Forecasted Sales and EPS Reconciliation](index=12&type=section&id=Reported%20and%20Organic%20Forecasted%20Sales%20Reconciliation) For Q4 2024, reported sales growth is forecasted at **1.5-2.5%** and organic sales growth at **2-3%**, with full-year adjusted diluted EPS projected at **$3.43**, an **8%** increase from 2023 Forecasted Sales and EPS Reconciliation | Metric | Q4 2024 Forecast | Full Year 2024 Forecast | Full Year 2023 | Change (FY) | | :----- | :--------------- | :---------------------- | :------------- | :---------- | | Reported Sales Growth | 1.5-2.5% | 3.5% | - | - | | Organic Sales Growth | 2-3% | 4.0% | - | - | | Reported EPS (Diluted) | $0.75 | $2.35 | $3.05 | -23% | | Adjusted EPS (Diluted) | $0.76 (+17% YoY) | $3.43 | $3.17 | +8% |

Core Viewpoint - Church & Dwight, Inc. (CHD) is expected to report top-line growth for Q3 fiscal 2024, with revenues projected at $1,494 million, reflecting a 2.6% increase year-over-year, while earnings per share are anticipated to decline by 8.1% to 68 cents [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for Q3 revenues is $1,494 million, indicating a 2.6% increase from the previous year [1]. - The earnings estimate remains unchanged at 68 cents per share, representing an 8.1% decline year-over-year [2]. Historical Performance - CHD has a strong history of earnings surprises, exceeding consensus estimates in the last four quarters with an average surprise of 8.2% [2]. Factors Influencing Q3 Earnings - CHD's diverse product portfolio, including essential household and personal care items, positions the company to capture consumer demand focused on value and quality [4]. - Continued investment in marketing, innovative product launches, and strong brand performance are expected to drive revenue growth [4]. - The company anticipates net sales growth of approximately 2.5% and organic sales growth of around 3% for Q3 [5]. Segment Performance - Organic sales growth is projected at 2.9%, with 2% growth in the Consumer Domestic segment, 6.8% in the Consumer International segment, and 4.2% in the Specialty Products division [5]. - Key brands such as ARM & HAMMER and OXICLEAN are expected to be significant revenue drivers, with the Consumer Domestic segment anticipated to grow by 2% year-over-year [6][7]. International Expansion - CHD is strengthening its international presence, with a robust 9.3% organic growth reported in the international segment in Q2, particularly in Canada, Mexico, and Germany [8]. - Revenue from the Consumer International segment is expected to increase by 8.3% [8]. Challenges - The company faces challenges due to a slowing consumer spending environment, which has affected consumption growth [9]. - The gummy vitamins segment has underperformed, experiencing consistent declines despite efforts to stabilize it through new packaging and formulas [10]. Marketing and Expenses - CHD has seen increasing marketing expenses, which may impact profit margins if sales do not sufficiently offset these costs [11]. - Marketing expenses as a percentage of sales are projected to increase by 160 basis points to 13.1% in Q3 [11].

Core Insights - Church & Dwight (CHD) is expected to report quarterly earnings of $0.68 per share, reflecting an 8.1% decline year-over-year, while revenues are forecasted to reach $1.49 billion, indicating a 2.6% increase compared to the previous year [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, suggesting analysts have maintained their initial forecasts [1][2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] Revenue Projections - Analysts project 'Net sales- Total Consumer Net Sales' to be $1.42 billion, representing a 3.1% increase from the prior-year quarter [4] - 'Net sales- Consumer- Consumer Domestic' is expected to reach $1.16 billion, indicating a year-over-year change of 2.1% [4] - 'Net sales- Consumer- Consumer International' is estimated at $262.50 million, suggesting a 7.4% increase year-over-year [5] - 'Net sales- Specialty Products Division' is projected to be $73.81 million, reflecting a decline of 5.9% compared to the previous year [5] Income Before Taxes - 'Income before Income Taxes- Specialty Products Division' is expected to be $8.78 million, up from $6.20 million in the same quarter last year [7] - 'Income before Income Taxes- Consumer International' is projected at $23.33 million, slightly higher than the year-ago figure of $22.70 million [7] - 'Income before Income Taxes- Consumer Domestic' is estimated to reach $197.00 million, down from $203.40 million in the previous year [8] Stock Performance - Shares of Church & Dwight have shown a return of -3.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.7% change [8] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [8]

Company Overview - Church & Dwight (CHD) is expected to report a year-over-year decline in earnings of 8.1%, with an estimated earnings per share (EPS) of $0.68 for the quarter ended September 2024 [2] - Revenue is projected to be $1.49 billion, reflecting a 2.6% increase from the previous year [2] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [3] - The Most Accurate Estimate for Church & Dwight is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.24%, suggesting a bearish sentiment among analysts [6] Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [5] - Church & Dwight currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [7] Historical Performance - In the last reported quarter, Church & Dwight exceeded expectations by delivering an EPS of $0.93 against an expected $0.84, resulting in a surprise of +10.71% [8] - The company has beaten consensus EPS estimates in each of the last four quarters [8] Industry Comparison - Clorox (CLX), a competitor in the same industry, is expected to report an EPS of $1.36 for the same quarter, indicating a significant year-over-year increase of 177.6% [10] - Clorox's revenue is anticipated to reach $1.63 billion, up 17.6% from the previous year, and it has a positive Earnings ESP of 2.60% along with a Zacks Rank of 2 (Buy) [10]

Church & Dwight Co., Inc. (CHD) appears in a troubled spot. The company is facing challenges related to volatile consumer spending in the current environment. Increasing marketing expenditure and weakness in the gummy vitamins business are also a concern for the company's overall performance. These downsides are reflected in Church & Dwight's guidance for the third quarter and 2024. Reflecting the negative sentiment, the Zacks Consensus Estimate for the current quarter and full year has seen downward revisi ...

. ● . SEC Charges Independent Director and Ex-CEO of Church & Dwight With Concealing Close Friendship with Company Executive September 30, 2024 5:47 PM EDT | Source: Newsfile SEC Press Digest Washington, D.C.--(Newsfile Corp. - September 30, 2024) - The Securities and Exchange Commission today announced settled charges against James R. Craigie, a former CEO, Chairman, and board member of Church & Dwight Co. Inc., for violating proxy disclosure rules by standing for election as an independent director withou ...

Core Insights - The Zacks Soap and Cleaning Materials industry is thriving due to strong consumer demand, cost-saving measures, and effective execution strategies despite macroeconomic challenges [1][2][4] Industry Overview - The industry comprises companies manufacturing fast-moving consumer goods, including personal care, household, and specialty products [3] - Key segments include skin and hair care, home care products, and laundry detergents, with distribution through various retail channels [3] Major Trends - Product innovation and strategic efforts are crucial for growth, with companies focusing on eco-friendly products and expanding digital capabilities [4] - Strong demand trends and strategic pricing actions have positively impacted sales, with companies adopting bold pricing initiatives to combat rising costs [5][6] Cost Challenges - The industry faces elevated manufacturing and logistics costs, impacting profitability, with companies implementing cost-control measures to improve margins [2][6] - Increased spending on advertising and sales promotions is expected to affect near-term margins [2] Performance Metrics - The industry has outperformed the broader Zacks Consumer Staples sector, rising 21.6% over the past year compared to the sector's 9.4% and the S&P 500's 31.1% [10] - The current forward 12-month price-to-earnings (P/E) ratio for the industry is 23.72X, higher than the S&P 500's 21.8X and the sector's 18.2X [11] Company Highlights - **Unilever**: Focused on productivity with a target of €800 million in cost savings and a projected 2024 sales growth of 4.2% [12] - **Colgate-Palmolive**: Expanding its Naturals range and targeting a 2024 sales growth of 3.9% [16] - **Henkel**: Benefiting from price increases and cost management, with a projected 2024 sales growth of 1.7% [18] - **Procter & Gamble**: Experiencing strong demand across all segments, with a projected 2024 sales growth of 2.4% [20] - **Church & Dwight**: Focused on product innovation and capital investments, targeting a 2024 sales growth of 3.6% [22]

Church & Dwight Co., Inc. (CHD) is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 28.42, higher than the industry average of 23.72 and the S&P 500's 21.81. This inflated valuation suggests that the market is pricing in high growth expectations, but it also raises questions about whether the company can deliver results that justify such a premium. CHD's Value Score of D adds to these concerns. Image Source: Zacks Investment Research Shares of Church & Dwight have dipped 3.8% in the ...

Church & Dwight Co., Inc. (CHD) continues to solidify its market position through a strong brand portfolio and adept pricing strategies. Its focus on expanding online sales has aligned with shifting consumer behaviors. However, the company faces challenges, including rising marketing expenses and a slowdown in consumer spending, which affected second-quarter 2024 results. Currency fluctuations pose a risk to the company's performance. Shares of the company have risen 7.9% in the past year compared with the ...