NYSE$CHD

Church & Dwight Co Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Church & Dwight's Q1 2022 performance was driven by strong consumer demand and pricing actions, offset by supply chain disruptions and volume decline.

Church & Dwight reported a 4.7% increase in net sales to $1,297.2 million, with organic sales growing by 2.7%. EPS was $0.83, flat compared to prior year adjusted EPS. The company is experiencing significant inflation and expects additional cost increases in 2022.

  • Net sales increased by 4.7%, with domestic sales up 5.6%, international sales down 0.8%, and specialty products up 9.2%.
  • Organic sales grew by 2.7%, driven by positive product mix and pricing of 7.8%, offset by a volume decline of -5.1%.
  • EPS was $0.83, flat versus prior year adjusted EPS, exceeding the Company’s outlook of $0.75.
  • The company expects full year reported sales growth of approximately 5% to 8% and organic sales growth of approximately 3% to 6%.

Headline financials

Total Revenue

$1.3B

Previous: $1.24B+4.7%
EPS (adj)

$0.83

Previous: $0.83+0.0%
Total Organic Sales Growth

2.7%

Previous: 4.9%-44.9%
Domestic Organic Growth

2.7%

Previous: 5.1%-47.1%
International Organic Growth

0.3%

Previous: 3.2%-90.6%
Specialty Products Organic Growth

9.2%

Previous: 6.0%+53.3%
Capital Expenditures

-$15.6M

Previous: -$26.3M+40.7%
Free Cash Flow

$189M

Previous: $194M-2.9%
Net Income

$204M

Previous: $221M-7.4%
Operating Income

$281M

Previous: $303M-7.2%
Gross Profit

$553M

Previous: $551M+0.3%
Cash & Equivalents

$174M

Previous: $128M+36.8%
Total Assets

$7.94B

Previous: $7.38B+7.6%
Stock-Based Comp

$2.9M

Previous: $3.1M-6.5%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.3B

Q1 2022+4.7%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.3B total across 4 segments · Q1 2022

  • Household Products
    $521M+5.1%
  • Personal Care
    $475M+6.1%
  • Consumer International
    $215M-0.8%
  • Specialty Products
    $87.5M+9.2%

Forward guidance

The company expects full year 2022 reported sales growth to be approximately 5% to 8% and organic sales growth to be approximately 3% to 6%. EPS to be at 4%, the low end of our 4-8% range. For Q2, we expect reported sales growth of approximately 5 to 6%, organic sales growth of approximately 3 to 4%¹, and gross margin contraction of 200 bps. As a result we expect EPS of $0.70 per share, an 8% decrease from last year’s adjusted Q2 EPS.

Tailwinds

  • Full year 2022 reported sales growth to be approximately 5% to 8%.
  • Full year 2022 organic sales growth to be approximately 3% to 6%.
  • Operating income growth of 10%+
  • Supply issues will begin to abate in the back half of 2022 for most of our brands.
  • 40% of our portfolio is considered value products.

Headwinds

  • Expects $85 million of incremental cost inflation in 2022 compared to expectations in January.
  • Higher inflation at a faster rate than our price increases take effect.
  • Full year reported gross margin to be down versus 2021.
  • Effective tax rate to be 23%, an increase of 320 basis points.
  • For Q2, EPS of $0.70 per share, an 8% decrease from last year’s adjusted Q2 EPS.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.4%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+11.3%

Q3 2018

Best reaction

-8.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-2.2%-1.3%
Q4 2025+5.7%+9.4%+14.0%
Q3 2025+5.5%+6.0%+4.1%
Q1 2025-7.0%-7.3%-1.0%
Q4 2024-1.5%+0.1%+3.8%
Q3 2024+3.1%+3.3%+10.2%
Q2 2024-0.1%+1.6%+1.9%
Q1 2024-0.1%+0.6%+0.7%
Q4 2023-1.6%-1.0%-1.5%
Q3 2023-5.5%-3.6%+3.7%
Q2 2023-0.3%+0.9%-2.8%
Q1 2023+5.6%+5.5%+2.1%
Q4 2022+4.4%+4.3%+5.5%
Q3 2022-3.1%-5.3%+3.1%
Q2 2022-7.9%-9.0%-11.3%
Q1 2022-6.3%-8.2%-13.3%
Q4 2021+4.0%+4.6%+0.0%
Q3 2021+2.8%+4.2%+9.4%
Q2 2021-1.5%-3.6%-4.8%
Q1 2021+1.6%+5.9%+1.6%
Q4 2020-3.4%-4.5%-9.4%
Q3 2020+0.2%+0.9%-2.2%
Q2 2020+3.7%+6.4%+5.4%
Q1 2020+4.2%+7.4%+9.8%
Q4 2019+3.2%+2.0%-4.5%
Q3 2019-8.8%-10.8%-6.9%
Q2 2019-3.0%-3.2%+4.1%
Q1 2019+1.0%-1.0%+1.0%
Q4 2018-4.0%-3.1%+0.4%
Q3 2018+11.3%+14.3%+11.5%
Q2 2018+3.7%+2.4%+2.6%
Q1 2018+3.2%+4.1%+3.2%
Q4 2017+3.3%+4.8%+7.8%
Q3 2017-4.9%-5.2%+1.4%
Q2 2017-4.4%-5.7%-4.8%
Q1 2017+4.2%+3.2%+7.8%
Q4 2016+5.2%+6.1%+9.2%
Q3 2016-7.3%-3.0%-8.1%
Q2 2016+3.0%+3.4%+2.4%
Q1 2016+3.1%
Q4 2015+2.4%
Q3 2015-2.3%
Q2 2015+2.4%
Q1 2015+1.8%
Q4 2014+1.9%
Q3 2014+1.6%
Q2 2014+2.2%
Q1 2014-0.7%
Q4 2013+1.6%
Q3 2013+0.1%
Q2 2013-3.3%
Q1 2013+1.5%
Q4 2012+2.3%
Q3 2012+1.4%
Q2 2012-4.4%
Q1 2012+0.6%
Q4 2008-0.4%
Q1 2009-0.4%
Q4 2011-0.4%
Q3 2011+0.0%
Q2 2011-1.4%
Q1 2010-3.5%
Q1 2011+0.8%
Q4 2010+1.1%
Q3 2010-0.4%
Q3 2009-0.4%
Q2 2009+0.4%
Q4 2009+0.4%
Q2 2010+0.4%

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