NYSE$CHD

Church & Dwight Co Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Church & Dwight exceeded its outlook with double digit sales growth and 90 basis points of gross margin expansion.

Church & Dwight reported a 10.2% increase in net sales to $1,429.8 million, driven by strong consumer demand. Organic sales grew by 5.7%, influenced by positive product mix and pricing. Reported EPS was $0.82, while adjusted EPS reached $0.85, surpassing the company's outlook.

  • Net sales increased by 10.2%, with domestic sales up 12.2% and international sales up 7.5%.
  • Organic sales grew by 5.7%, driven by domestic growth of 5.5% and international growth of 11.6%.
  • Gross margin increased by 90 basis points.
  • Adjusted EPS was $0.85, a 2.4% increase compared to the previous year.

Headline financials

Total Revenue

$1.43B

Previous: $1.3B+10.2%
EPS (adj)

$0.85

Previous: $0.83+2.4%
Total Organic Sales Growth

5.7%

Previous: 2.7%+111.1%
Domestic Organic Growth

5.5%

Previous: 2.7%+103.7%
International Organic Growth

11.6%

Previous: 0.3%+3766.7%
Specialty Products Organic Growth

-5.9%

Previous: 9.2%-164.1%
Capital Expenditures

-$25M

Previous: -$15.6M-60.3%
Free Cash Flow

$178M

Previous: $189M-5.6%
Net Income

$203M

Previous: $204M-0.6%
Operating Income

$292M

Previous: $281M+4.0%
Gross Profit

$622M

Previous: $553M+12.6%
Cash & Equivalents

$203M

Previous: $174M+16.3%
Total Assets

$8.27B

Previous: $7.94B+4.1%
Stock-Based Comp

$25.8M

Previous: $2.9M+789.7%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.43B

Q1 2023+10.2%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.43B total across 4 segments · Q1 2023

  • Household Products
    $602M+15.6%
  • Personal Care
    $515M+8.6%
  • Consumer International
    $231M+7.5%
  • Specialty Products
    $82.3M-5.9%

Forward guidance

The company is raising the full year outlook for Sales, EPS, Gross Margin and Cash Flow. Expects full year 2023 reported sales growth to be approximately 6-7% and organic sales growth to be approximately 3-4%.

Tailwinds

  • Sales and earnings momentum from Q1 expected to continue throughout 2023.
  • Full year reported sales growth expected to be approximately 6-7%.
  • Full year organic sales growth expected to be approximately 3-4%.
  • Full year reported gross margin to expand approximately 120 basis points versus 2022.
  • Cash flow from operations is now expected to be approximately $950 million.

Headwinds

  • SG&A both in dollars and as a percent of net sales to increase compared to 2022.
  • Tax rate to increase to approximately 23%.
  • Higher interest expense to be a drag to Adjusted EPS.
  • Other expense for 2023 is expected to be approximately $110 million reflecting an increase in interest expense due to higher rates as well as debt related to the recent acquisition of HERO.
  • Expect Adjusted EPS of $0.78 per share for Q2.

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 2023

Historical avgQ1 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro