NYSE$CHD

Church & Dwight Co Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Church & Dwight reported Q4 2021 results with net sales and EPS exceeding expectations.

Church & Dwight reported a 5.7% increase in net sales for Q4 2021, reaching $1,368.7 million. EPS increased by 8.5% to $0.64 per share, and adjusted EPS grew by 20.8%. Organic sales grew by 4.3%.

  • Net sales increased by 5.7%, driven by growth in domestic, international, and specialty products divisions.
  • Organic sales grew by 4.3%, exceeding the company's outlook.
  • EPS increased by 8.5% to $0.64 per share, with adjusted EPS growth of 20.8%.
  • The company closed on the THERABREATH® acquisition in late December, expecting $100 million in sales for 2022.

Headline financials

Total Revenue

$1.37B

Previous: $1.3B+5.7%
EPS (adj)

$0.64

Previous: $0.53+20.8%
Total Organic Sales Growth

4.3%

No prior period
Domestic Organic Growth

3.6%

No prior period
International Organic Growth

4.7%

No prior period
Specialty Products Organic Growth

12.0%

No prior period
Capital Expenditures

$54.7M

Previous: $44.3M+23.5%
Free Cash Flow

$286M

Previous: $148M+93.2%
Net Income

$158M

Previous: $150M+5.3%
Operating Income

$176M

Previous: $191M-7.5%
Gross Profit

$581M

Previous: $557M+4.3%
Cash & Equivalents

$241M

Previous: $183M+31.4%
Total Assets

$8B

Previous: $7.41B+7.8%
Stock-Based Comp

$3.4M

Previous: $2.8M+21.4%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.37B

Q4 2021+5.7%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.37B total across 4 segments · Q4 2021

  • Household Products
    $549M+10.3%
  • Personal Care
    $492M-0.1%
  • Consumer International
    $242M+5.9%
  • Specialty Products
    $85M+12.0%

Forward guidance

The Company expects full year 2022 reported sales growth to be approximately 5%-8% and organic sales growth to be approximately 3%-6%. We estimate full year EPS of $3.14 to $3.26, an increase of 4%-8% compared to prior year adjusted EPS.

Tailwinds

  • Categories expected to remain at elevated consumption levels, including gummy vitamins, laundry, laundry additives, hair growth supplements, and cat litter.
  • Household penetration is increasing, and existing households are consuming more vitamins.
  • Committed to offsetting inflation with price increases.
  • Expect operating profit margin expansion of 60 to 70 basis points compared to prior year adjusted operating margin.
  • THERABREATH ® brand to be fully integrated by the end of 2022 and continue to pursue accretive acquisitions.

Headwinds

  • Expect incremental cost inflation of $155 million versus 2021.
  • Expect to experience higher inflation at a faster rate than our price increases take effect in 2022.
  • The 2022 effective tax rate is expected to be approximately 23%, an increase of 320 basis points.
  • Full year reported gross margin to be down versus 2021, as we expect inflation to be partially offset by pricing and productivity.
  • Cash flow from operations is expected to be approximately $920 million as we increase safety stock inventory levels

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 Q4 2021

Historical avgQ4 2021

+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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