Church & Dwight (CHD) Benefits From Robust Pricing & Brands

Core Insights - Church & Dwight Co., Inc. (CHD) is leveraging strong consumer demand and effective pricing strategies to enhance its brand presence and productivity [1][2] - The company has seen a 5.2% increase in quarterly organic sales, attributed to a favorable product mix and a 1.5% increase in pricing [2] - Despite rising costs impacting gross margins, the company remains focused on innovation and strategic acquisitions to drive growth [10][8] Financial Performance - In the first quarter of 2024, Church & Dwight's gross margin was affected by inflation, although pricing and productivity gains helped mitigate some of the impact [10] - Marketing expenses rose by $29.7 million to $152 million in the first quarter of 2024, with adjusted SG&A expenses increasing by 80 basis points to 14.8% of net sales [17] Strategic Initiatives - The company signed an agreement to acquire Graphico, a Japanese distributor, for $35 million, aiming to enhance its presence in Japan and the APAC region [8] - Church & Dwight introduced two new products in the detergent category, ARM & HAMMER Deep Clean and ARM & HAMMER Power Sheets, which have shown promising early results in 2024 [9] Brand Portfolio - Church & Dwight has a robust portfolio with seven power brands, including ARM & HAMMER and OXICLEAN, which contribute nearly 70% of its revenues and profits [16] - The company has a history of acquisitions that have bolstered its top-line growth, starting with its initial brand, ARM & HAMMER [15] Market Position - Church & Dwight's shares have increased by 11.7% over the past six months, slightly trailing the industry's growth of 12.6% [18]