Church & Dwight Q4 Earnings Meet Estimates, Volumes Fuel Organic Sales

Core Insights - Church & Dwight Co., Inc. (CHD) reported strong fourth-quarter 2024 results, with both top and bottom lines increasing year over year, and sales exceeding the Zacks Consensus Estimate [1][4] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 77 cents, aligning with the Zacks Consensus Estimate, representing an 18.5% year-over-year increase [3] - Net sales reached $1,582 million, a 3.5% increase year over year, surpassing the Zacks Consensus Estimate of $1,563 million [4] - Organic sales grew by 4.2%, driven by a 3% increase in volume, a favorable product mix, and pricing contributing 1.2% [4] Segment Performance - Consumer Domestic: Net sales increased by 2.7% to $1,225.7 million, with organic sales also up 2.7%, supported by strong performance in personal care and household products [7] - Consumer International: Net sales rose by 10.2% to $285.1 million, with organic sales increasing by 9.6%, driven by favorable pricing and higher volumes [8] - Specialty Products: Sales declined by 6.6% to $71.2 million, although organic sales grew by 10.3% due to higher prices and improved product mix [9] Cost and Margin Analysis - Gross margin expanded by 10 basis points to 44.7%, while adjusted gross margin remained flat at 44.6% year over year [5] - Marketing expenses decreased by $11.1 million year over year to $207.9 million, with adjusted SG&A expenses as a percentage of net sales decreasing by 40 basis points to 15.2% [6] Future Outlook - For 2025, the company anticipates reported sales growth of 2.5-3.5% and organic sales growth of 3-4%, driven by volume [12] - Management expects gross margin to expand by about 25 basis points year over year, with marketing expenses projected to exceed 11% of sales [13] - Adjusted EPS growth is expected to be 7-8%, with reported EPS anticipated to increase by 53-55% in 2025 [14] Dividend and Financial Health - The company announced a 4% dividend increase, raising the quarterly dividend to 29.5 cents per share, resulting in an annual payout of nearly $287 million [11] - As of the end of the quarter, cash and cash equivalents stood at $964.1 million, with long-term debt at $2,204.6 million [10]