NYSE$CHD

Church & Dwight Co Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Church & Dwight's Q2 2022 performance saw net sales growth, driven by strong consumer demand, while EPS exceeded expectations despite increased cost inflation and currency headwinds.

Church & Dwight reported a 4.2% increase in net sales to $1,325.1 million and organic sales growth of 3.4% in Q2 2022. EPS was $0.76, exceeding the Company’s outlook of $0.70. The company revises full year 2022 EPS to flat, reflecting incremental inflation and F/X.

  • Net sales increased by 4.2%, with domestic sales up 4.7%, international sales up 1.6%, and specialty products division (SPD) up 6.3%.
  • Organic sales grew by 3.4%, with domestic up 2.4%, international up 6.5%, and SPD up 6.3%.
  • EPS was $0.76, flat to prior year adjusted EPS.
  • Gross margin contracted 220 bps due to higher commodities and third-party manufacturing costs.

Headline financials

Total Revenue

$1.33B

Previous: $1.27B+4.2%
EPS (adj)

$0.76

Previous: $0.76+0.0%
Total Organic Sales Growth

3.4%

Previous: 4.5%-24.4%
Domestic Organic Growth

2.4%

Previous: 2.8%-14.3%
International Organic Growth

6.5%

Previous: 10.4%-37.5%
Specialty Products Organic Growth

6.3%

Previous: 11.8%-46.6%
Capital Expenditures

-$38.8M

Previous: -$43.3M+10.4%
Free Cash Flow

$148M

Previous: $175M-15.3%
Net Income

$187M

Previous: $218M-14.3%
Operating Income

$262M

Previous: $299M-12.4%
Gross Profit

$545M

Previous: $552M-1.2%
Cash & Equivalents

$640M

Previous: $150M+327.0%
Total Assets

$8.44B

Previous: $7.37B+14.6%
Stock-Based Comp

$15M

Previous: $13.7M+9.5%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.33B

Q2 2022+4.2%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.33B total across 4 segments · Q2 2022

  • Household Products
    $573M+9.5%
  • Personal Care
    $432M-1.1%
  • Consumer International
    $231M+1.6%
  • Specialty Products
    $89.9M+6.3%

Forward guidance

The Company expects full year 2022 reported sales growth to be approximately 4% to 5% and organic sales growth to be approximately 3% to 4%.

Tailwinds

  • Strong consumption for value detergents in the second half
  • Marketing dollar spend is expected to be significantly higher in the second half
  • Company is well positioned for a potential recessionary environment given that 40% of our portfolio is comprised of value products
  • Recovery of fill rates in personal care
  • Accelerated trade down to our value portfolio

Headwinds

  • Incremental cost inflation of $135 million in 2022
  • Negative foreign currency impact of approximately 1%
  • Expect inflation to outpace pricing and productivity
  • Slowdown in discretionary brands such as Waterpik and Flawless
  • Lower consumption growth in the vitamin category

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 Q2 2022

Historical avgQ2 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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