NYSE$CHD

Church & Dwight Co Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Church & Dwight exceeded its outlook with stronger than expected sales growth and gross margin expansion.

Church & Dwight reported a 9.7% increase in net sales to $1,454.2 million and a gross margin expansion of 270 basis points. Organic sales grew by 5.4%, driven by positive product mix and pricing.

  • Net sales increased by 9.7%, with domestic sales up by 12.3% and international sales up by 4.9%.
  • Organic sales grew by 5.4%, with domestic organic sales up by 6.3% and international organic sales up by 6.1%.
  • Gross margin expanded by 270 basis points due to improved pricing, productivity, and the impact of the HERO acquisition.
  • Adjusted EPS increased by 21.1% to $0.92, exceeding the Company’s outlook of $0.78.

Headline financials

Total Revenue

$1.45B

Previous: $1.33B+9.7%
EPS (adj)

$0.92

Previous: $0.76+21.1%
Total Organic Sales Growth

5.4%

Previous: 3.4%+58.8%
Domestic Organic Growth

6.3%

Previous: 2.4%+162.5%
International Organic Growth

6.1%

Previous: 6.5%-6.2%
Specialty Products Organic Growth

-6.5%

Previous: 6.3%-203.2%
Capital Expenditures

-$63.2M

Previous: -$38.8M-62.9%
Free Cash Flow

$158M

Previous: $148M+6.5%
Net Income

$221M

Previous: $187M+18.2%
Operating Income

$294M

Previous: $262M+12.2%
Gross Profit

$639M

Previous: $545M+17.2%
Cash & Equivalents

$397M

Previous: $640M-38.0%
Total Assets

$8.51B

Previous: $8.44B+0.8%
Stock-Based Comp

$13.7M

Previous: $15M-8.7%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.45B

Q2 2023+9.7%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.45B total across 4 segments · Q2 2023

  • Household Products
    $619M+8.1%
  • Personal Care
    $509M+17.9%
  • Consumer International
    $242M+4.9%
  • Specialty Products
    $84.1M-6.5%

Forward guidance

The Company is raising the full year outlook for Sales, Gross Margin, EPS, and Cash Flow, while funding significant incremental investments in marketing and SG&A.

Tailwinds

  • Full year 2023 reported sales growth to be approximately 8%.
  • Organic sales growth to be approximately 5%.
  • Full year gross margin to expand approximately 200 basis points.
  • Double-digit percentage increase in gross profit in full year 2023.
  • Cash flow from operations is now expected to be approximately $1.0 billion.

Headwinds

  • Second half EPS growth to be flat.
  • Expects a significant increase in marketing spending and higher SG&A.
  • Higher tax rate in Q3.
  • Q3 Adjusted EPS of $0.66 per share, a 13% decrease from last year’s Adjusted Q3 EPS.
  • Reported EPS of $0.63 for Q3, a 17.1% decrease.

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 2023

Historical avgQ2 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