Nonetheless, companies in the industry continue to face challenges related to higher manufacturing and logistic costs, increased commodity prices, and reduced volumes. Additionally, elevated spending on advertising and sales promotions is expected to impact near-term margins. Some companies are implementing cost-cutting measures to support margins while introducing products and enhancing marketing efforts. Notable players like The Procter & Gamble Company (PG) , Colgate-Palmolive (CL) , Henkel AG & Co. (HEN ...

Church & Dwight Co., Inc. (CHD) is capitalizing on strong consumer demand for its brands. The consumer product behemoth is also seeing success on the back of a strong brand presence, effective pricing strategies and increased productivity. Consistent innovation, continuous product introductions and strategic acquisitions have enabled it to build a robust portfolio. However, the stock is not immune to a rising cost environment. The Zacks Rank #3 (Hold) company has been resorting to incremental pricing across ...

Pricing Actions Drive Growth Although compensated by pricing, volumes and productivity gains, Church & Dwight's gross margin was partly hurt by inflation in first-quarter 2024. In its last earnings call, management highlighted that it expects to witness a rise in manufacturing costs, mainly due to capacity-related investments, a rise in third-party manufacturing expenses and moderate commodity inflation. In 2022, Church & Dwight acquired the Hero Mighty Patch brand (or Hero) and other acne treatment product ...

The stock market offers a platform for investors to buy shares in companies. Potentially earning profits through dividends. Dividend stocks pay regular income to shareholders, usually from the company's profits. These stocks attract investors looking for steady cash flow in addition to capital appreciation. One major advantage of investing in dividend stocks is the potential for regular income, which can be especially appealing during volatile or uncertain market conditions. Many dividend-paying companies a ...

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2024 was $0.96, up 12.9% from the prior year, exceeding the outlook of $0.85 due to higher-than-expected sales growth, gross margin expansion, and a lower tax rate [135][158] - Reported revenue increased by 5.1%, with organic sales growth of 5.2%, driven by a volume increase of 3.7% and a positive product mix and pricing of 1.5% [145][165] - Gross margin expanded by 220 basis points to 45.7%, primarily due to productivity, volume, mix, and pricing, net of higher manufacturing costs [165][158] Business Line Data and Key Metrics Changes - In the laundry segment, ARM & HAMMER Liquid Laundry Detergent consumption was flat, while the category grew by 2% [5] - BATISTE in Personal Care saw a strong consumption growth of 19% in Q1, increasing its market share to 47.5% [7] - The Gummy Vitamins and WATERPIK segments negatively impacted total company organic growth, with WATERPIK experiencing a 1% drag due to retailer inventory adjustments [8][180] Market Data and Key Metrics Changes - The International business delivered organic growth of 8.8% in Q1, driven by strong performance in Mexico, Germany, the U.K., and France [9] - Specialty Products organic sales increased by 7.2%, primarily due to record sales in the Eurasia business [9] - ARM & HAMMER Litter grew consumption by 5% in Q1, aligning with category growth [178] Company Strategy and Development Direction - The company signed an agreement to acquire Graphico, a Japanese distributor, for approximately $35 million, expected to close later this year, enhancing its presence in Japan and the APAC region [4][176] - The company plans to leverage revenue growth management to support selective brand and retailer growth, which has shown positive results in the first quarter [88] - New product launches, including ARM & HAMMER Deep Clean and Power Sheets, are expected to drive organic growth, with an anticipated contribution of about 2% from new products for the year [30][134] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting that despite challenges in certain segments, overall performance remains strong with three consecutive quarters of U.S. volume growth [159][163] - The company raised its full-year outlook for gross margin and EPS growth due to a strong start in Q1 [164] - Management highlighted that while there are pressures on the consumer, the company has not seen a significant decline in consumption across its product categories [82] Other Important Information - Marketing expenses increased by $29.7 million year-over-year, accounting for 10.1% of net sales, which contributed to market share gains [183] - Capital expenditures for Q1 were $46.3 million, with expectations of approximately $180 million for the full year as capacity expansion projects continue [167] - The company expects cash flow from operations to be approximately $1,050 million for the full year, slightly up from the previous outlook of $1 billion [166] Q&A Session Summary Question: What is the outlook for laundry volumes? - Management noted an improvement in laundry volumes and expects this trend to continue as promotional activities normalize [18][39] Question: What is the impact of WATERPIK's performance on the outlook? - Management indicated that while WATERPIK faced shipment issues due to retailer inventory adjustments, consumption remains healthy, and they expect recovery in the latter part of the year [28][29] Question: How is the company managing marketing expenses? - Management stated that marketing spending is expected to increase in Q2 and Q3, with a strategic shift to support new product launches [35][36] Question: What are the dynamics in the litter market? - Management acknowledged increased competition and private label activity but emphasized that their market share remains strong [33][62] Question: How is the company addressing consumer pressures? - Management highlighted that while there are pressures such as rising credit card debt, consumption for their products has remained stable, indicating resilience in their portfolio [82][61]

Certain subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below. Product line revenues from external customers are as follows: | --- | --- | --- | --- | |------------------------------------|-------|---------------------------------------|--------------------------| | | | Three Months \nMarch 31, 2024 | Ended \nMarc ...

Church & Dwight (CHD) reported $1.5 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.1%. EPS of $0.96 for the same period compares to $0.85 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +11.63%, with the consensus EPS estimate being $0.86.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Church & Dwight (CHD) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.63%. A quarter ago, it was expected that this maker of household and personal products would post earnings of $0.64 per share when it actually produced earnings of $0.65, delivering a surprise of 1.56%.Over the l ...

[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 ...