U.S. stock markets are facing fluctuations in early 2024 after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading well above 4%.This was primarily owing to the uncertainty regarding the time of the Fed’s first cut in the benchmark interest rate. Recently, several key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic co ...

EWING, N.J.--(BUSINESS WIRE)--Church & Dwight Co., Inc. (NYSE: CHD) will present at the 2024 Consumer Analyst Group of New York (CAGNY) Conference on Thursday, February 22, 2024, at 3:00 PM EST. The presentation will be broadcast on the company’s website. A replay of the webcast will be available following the event. Church & Dwight Co., Inc., founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal ca ...

Financial Performance - In 2023, net sales increased by 9.2% to $5,867.9 million compared to $5,375.6 million in 2022[38] - Gross profit for 2023 was $2,588.5 million, representing a gross margin of 44.1%, an increase of 220 basis points from 41.9% in 2022[38] - Selling, General & Administrative (SG&A) expenses decreased by 20.3% to $889.8 million, with SG&A as a percentage of net sales dropping to 15.2% from 20.8% in 2022[41] - Income from operations rose by 76.9% to $1,057.4 million, resulting in an operating margin of 18.0%, up 690 basis points from 11.1% in 2022[38] - Diluted net income per share increased by 81.5% to $3.05, compared to $1.68 in 2022[38] - Net cash provided by operating activities was $1,030.6 million in 2023, up from $885.2 million in 2022[123] - The company reported a net income of $755.6 million in 2023, compared to $413.9 million in 2022[123] Sales Performance - Consumer Domestic segment net sales grew by 10.7% to $4,571.2 million in 2023, up from $4,131.0 million in 2022[47] - The Consumer International segment saw a net sales increase of 8.9%, attributed to a 3.4% increase in product volumes sold and a 5.1% increase in pricing/product mix[72] - Net sales for Consumer Domestic increased by 10.7% as of December 31, 2023, driven by a 1.0% increase in product volumes sold and a 4.7% increase in pricing/product mix[101] - The Specialty Products Division (SPD) saw a decline in net sales, primarily due to reduced sales of the MEGALAC dairy supplement, leading to an exit from this business segment in Q1 2024[27] Expenses and Costs - Cost of sales for the year ended December 31, 2023, was $3.4 billion, an increase of 36% from $2.5 billion in 2022[138] - Selling, general and administrative expenses totaled $64.9 million in 2023, up from $32.6 million in 2022, representing a 99% increase[138] - Research and development expenses were $122.4 million in 2023, compared to $110.0 million in 2022, reflecting an increase of 11.5%[165] Cash Flow and Dividends - Cash dividends per share increased to $1.09 in 2023, up from $1.05 in 2022[93] - Cash and cash equivalents at the end of the period increased to $344.5 million in 2023 from $270.3 million in 2022[123] Debt and Financing - The company repaid $200.0 million of the Term Loan in 2023, with an additional $100.0 million repayment planned for January 2024[76] - The company has a term loan facility of $400.0 million due on December 22, 2024, with the interest rate linked to the Secured Overnight Financing Rate (SOFR)[104] Market and Competitive Landscape - The vitamin category is facing increased competition, with over 60 significant competitors, leading to a potential impairment risk for the VITAFUSION and LIL' CRITTERS trade name, which has a carrying value of $281.3 million[58] - The company competes in highly innovative household and personal care categories, which require significant advertising and promotion[214] - The specialty chemicals business faces intense competition influenced by capacity utilization and raw material costs[215] Strategic Focus and Future Plans - The company continues to focus on new product introductions and increased marketing spending to address sales pressures in key product categories[28] - The company plans to continue focusing on market expansion and new product development to drive future growth[126] - The company anticipates capital expenditures of approximately $180.0 million in 2024, primarily for manufacturing capacity investments[78] Segment Information - The company operates in three segments: Consumer Domestic, Consumer International, and Specialty Products Division, focusing on various personal care and household products[156] - The SPD segment accounted for approximately 5% of the company's consolidated net sales in 2023[209] Environmental and Social Responsibility - The Company has a focus on minimizing environmental impact, including increased renewable energy usage and reduced water consumption[198] - The Company emphasizes employee safety and wellness as top priorities, with policies designed to ensure compliance with OSHA standards[199] - The Company has received recognition for its progress in key areas of Environmental, Social, and Governance (ESG) from various third parties[200]

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Church & Dwight (CHD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Church & Dwight is a member of our Consumer Staples group, which includes 193 different companies and currently sits at #13 in the Zacks Sector Rank. ...

Wall Street started 2024 on a high as stocks rallied on hopes that the Federal Reserve would soon begin to its rate cuts, with inflation sharply declining over the past year. The Dow, S&P 500 and Nasdaq ended January 1.2%, 1.6% and 1% higher, respectively.The consumer confidence level also touched a 25-month high in January, with the index reading coming in at 114.8. Investors now believe that the economy will have a softer landing than expected earlier.The Federal Reserve, at the end of its January FOMC me ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 9.2% for the full year 2023, exceeding the outlook of 9% [50] - Organic growth was 5.3%, surpassing the expected 5% [50] - Gross margin expanded by 220 basis points, reaching 44.1%, better than the anticipated 210 basis points [50][58] - Earnings per share (EPS) growth was reported at 8% to 10%, with adjusted EPS growth before MEGALAC being 8% to 10% [56] Business Line Data and Key Metrics Changes - The company has narrowed its focus to seven power brands, which account for 70% of revenues and profits, emphasizing their potential for global growth [5][14] - The ARM & HAMMER brand saw significant growth, with a share increase to 14.4% in the fabric care category [68] - THERABREATH and HERO brands reported substantial growth, with THERABREATH achieving 57% distribution growth and HERO growing from 0.2% to an 18% share in the acne care category [34][74] Market Data and Key Metrics Changes - The international market is expected to grow at 8%, with the company seeing strong growth across all subsidiary markets [4][86] - The company has a low private label exposure of around 12%, which has remained stable over the years [15][67] - E-commerce sales accounted for 20% of total sales, with expectations to reach 30% by the end of the decade [4][98] Company Strategy and Development Direction - The company is focused on innovation and digital growth, with plans to invest more in e-commerce and technology [94] - The acquisition strategy remains a priority, with a specific focus on high-growth, high-margin brands [48][63] - The company aims to recover gross margins to pre-COVID levels of 45.5% through productivity programs and higher-margin acquisitions [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow in the U.S. market, projecting a 3% growth outlook [13] - The company is optimistic about its new product pipeline, describing it as the best in 17 years [98] - Management noted that inflation is moderating, which is expected to positively impact gross margins [19][27] Other Important Information - The company announced a 4% dividend increase, aligning with its capital allocation strategy [31] - The cash conversion cycle has improved significantly, dropping from 52 days to the 20s, despite a recent spike due to acquisitions [29] - The company is committed to maintaining a strong balance sheet, with expectations to reduce leverage from 1.8 times to 1.6 times [62] Q&A Session Questions and Answers Question: What caused the weakness in the fourth quarter for ARM & HAMMER laundry? - Management indicated that the weakness was due to the decision to not repeat certain promotions from the previous year, which resulted in a loss of share but was deemed the right decision [100] Question: How is the company supporting the launch of new products? - The company plans to support the launch of Deep Clean and fabric sheets with increased marketing efforts, which are expected to contribute to share growth [101] Question: What is the outlook for the cat litter category? - The cat litter category remains healthy, with ARM & HAMMER contributing to an 11.8% growth last year, driven by increased pet adoptions and price increases [102] Question: How is BATISTE performing in the dry shampoo category? - BATISTE has seen a 16% growth, outperforming the category growth of 15.6%, attributed to new products and effective advertising [104] Question: What steps are being taken to address the share decline in the gummy category? - The company is investing in new product upgrades and advertising to stabilize the business and regain growth in the gummy category [105]

Safe Harbor Statement CHURCH & DWIGHT ANALYST DAY 2024 4 U.S. Consumer and New Products Update How We Run the Company Back ARM & HAMMER LLD, ARM & HAMMER Litter, Batiste, TheraBreath and Hero achieved all time high market shares. 4 6 | --- | --- | --- | --- | --- | |---------|--------|--------|-------|-------| | | | | | | | 10 YEAR | 5 YEAR | 3 YEAR | | 2023 | | | | | | | | | | | | | | 12.6% | 8.8% | | 4.0% | 18.7% | confidence Sustainable high International growth rate Strong 2024 fundamentals Matt Farrell ...

Church & Dwight (CHD) reported $1.53 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 6.4%. EPS of $0.65 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of +1.09%. The company delivered an EPS surprise of +1.56%, with the consensus EPS estimate being $0.64.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Church & Dwight (CHD) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.56%. A quarter ago, it was expected that this maker of household and personal products would post earnings of $0.68 per share when it actually produced earnings of $0.74, delivering a surprise of 8.82%.Over the la ...

Church & Dwight Co., Inc. (CHD) is likely to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 2, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, suggesting a rise of 5.3% from the prior-year quarter’s reported figure.The consensus mark for quarterly earnings has been unchanged in the past 30 days to 64 cents per share. This indicates an increase of 3.2% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings ...