Church & Dwight(US:CHD) ZACKSยท2024-11-01 19:10Core Insights - Church & Dwight Co., Inc. (CHD) reported strong third-quarter 2024 results, with both earnings and net sales exceeding expectations, driven by robust consumer demand and effective execution [1][2][3] Financial Performance - Adjusted earnings per share (EPS) reached 79 cents, surpassing the Zacks Consensus Estimate of 68 cents, marking a 6.8% year-over-year increase [2] - Net sales totaled $1,510.6 million, a 3.8% increase year over year, exceeding the Zacks Consensus Estimate of $1,493.8 million [3] - Organic sales grew by 4.3%, supported by a volume increase of 3.1% and a favorable product mix and pricing contributing 1.2% [3] Segment Performance - Consumer Domestic segment net sales rose 3.3% to $1,170.8 million, driven by personal care sales growth, with organic sales also increasing by 3.3% [6] - Consumer International segment net sales increased 9.5% to $267.7 million, with organic sales jumping 8.1% [7] - Specialty Products segment sales declined 8% to $72.1 million, although organic sales grew by 7.5% [8] Cost and Margin Analysis - Gross margin expanded by 80 basis points to 45.2%, with adjusted gross margin at 45%, up 60 basis points [4] - Marketing expenses increased by $18 million year over year to $185.8 million, representing 12.3% of net sales [4] - Adjusted SG&A expenses as a percentage of net sales rose 20 basis points to 15% due to investments in various operational areas [5] Financial Health and Future Outlook - The company ended the quarter with cash and cash equivalents of $752.1 million and long-term debt of $2,208.2 million [9] - For 2024, CHD anticipates reported sales growth of nearly 3.5% and organic sales growth of around 4% [11] - Management raised its full-year adjusted gross margin expansion guidance to approximately 110 basis points compared to 2023 [12] - The company expects a reported EPS decline of nearly 23% due to an asset impairment charge, while adjusted EPS growth is projected to be around 8% [13] - For Q4 2024, reported sales growth is expected to be between 1.5-2.5%, with adjusted EPS projected at 76 cents, a 17% year-over-year increase [14]