Church & Dwight(CHD)2025-02-13 20:36Sales 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 38.1 million in 2023, following the exit from this segment[34]. - The Passport food safety business generated net sales of 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 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 1.3 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].