NYSE$CHD

Church & Dwight Co Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Church & Dwight reported strong Q4 2023 results, exceeding expectations for net sales, gross margin, EPS, and cash from operations, driven by volume growth and successful acquisitions.

Church & Dwight reported a 6.4% increase in Q4 net sales, reaching $1,528.0 million, and a 5.3% increase in organic sales. Reported EPS was $0.62, with adjusted EPS at $0.65. The company's performance was driven by strong volume growth and contributions from recent acquisitions, leading to gross margin expansion and strong cash flow generation.

  • Q4 net sales increased by 6.4%, exceeding the company's outlook.
  • Organic sales grew by 5.3%, driven by positive pricing and higher volume.
  • Adjusted EPS was $0.65, compared to $0.62 in Q4 2022.
  • Gross margin increased by 260 basis points to 44.6%.

Headline financials

Total Revenue

$1.53B

Previous: $1.44B+6.4%
EPS (adj)

$0.65

Previous: $0.62+4.8%
Total Organic Sales Growth

5.3%

Previous: 0.4%+1225.0%
Domestic Organic Growth

5.7%

Previous: 0.4%+1325.0%
International Organic Growth

9.0%

Previous: 1.3%+592.3%
Specialty Products Organic Growth

-9.2%

Previous: -1.3%-607.7%
Capital Expenditures

-$102M

Previous: $80.7M-226.4%
Net Income

$154M

Previous: -$165M+193.3%
Operating Income

$216M

Previous: -$198M+208.9%
Gross Profit

$681M

Previous: $603M+13.1%
Stock-Based Comp

$12.1M

Previous: $10.3M+17.5%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.53B

Q4 2023+6.4%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.46B total across 4 segments · Q3 2023

  • Household Products
    $636M+7.4%
  • Personal Care
    $497M+18.8%
  • Consumer International
    $244M+11.2%
  • Specialty Products
    $78.4M-10.1%

Forward guidance

Church & Dwight anticipates strong sales and EPS growth for 2024, driven by product innovation and effective marketing. The company is evolving its Evergreen business model to reflect faster topline growth and greater margin expansion.

Tailwinds

  • Full year reported and organic sales growth expected to be approximately 4-5%.
  • Full year reported gross margin to expand approximately 50 to 75 basis points versus 2023.
  • Adjusted EPS expectation for 2024 is 7-9% growth.
  • Cash flow from operations is expected to be approximately $1.0 billion.
  • Pursue accretive acquisitions that meet our strict criteria.

Headwinds

  • Increase in manufacturing costs primarily due to capacity related investments and commodity inflation.
  • Tax rate is expected to increase 170 bps to approximately 23%.
  • Exiting the MEGALAC business will have a 1% EPS drag.
  • Higher marketing spending (+100 basis points) in Q1.
  • Other expense for 2024 is expected to be approximately $85 million, compared to $90 million in 2023.

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 2023

Historical avgQ4 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%

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