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CHD NYSE· Church & Dwight Co., Inc
Earnings report Q4 2023

Church & Dwight Co., Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, Church & Dwight Co., Inc. experienced robust revenue growth across its segments. The Consumer Domestic segment recorded net sales of $4,571.2 million, representing a significant increase of $440.2 million or 10.7% compared to the same quarter last year. The growth in net sales can be attributed to various factors, including a 1.0% increase in product volumes sold, a 4.7% improvement in pricing/product mix, and a 5.0% contribution from acquired product lines. Notably, the net sales increase of 10.7% also includes the impact of the Hero Acquisition, which took place on October 13, 2022.

Strengths

Church & Dwight Co., Inc. demonstrated several strengths in its latest quarter. Firstly, the company achieved a remarkable 10.7% increase in net sales in the Consumer Domestic segment, driven by higher sales of popular products such as THERABREATH® mouthwash, ARM & HAMMER® cat litter, liquid detergent, and baking soda. Additionally, the company's strategic acquisition of Hero has contributed to the overall revenue growth. Furthermore, management highlighted the positive impact of favorable pricing/product mix and volume growth, which further bolstered the company's financial performance.

Challenges

Despite the strong overall performance, Church & Dwight Co., Inc. faced some challenges in its latest quarter. The company experienced declines in sales of FINISHING TOUCH FLAWLESS® hair removal products, VITAFUSION® and L’IL CRITTERS® gummy dietary supplements, and WATERPIK® water flossers. These declines partially offset the revenue growth achieved in other product categories. It will be important for the company to address these challenges and find ways to improve sales in these declining product lines.

Noteworthy

One noteworthy aspect of Church & Dwight Co., Inc.'s performance in the latest quarter is the significant increase in gross margin. The company's gross margin expanded by 220 basis points to 44.1% compared to 41.9% in the same quarter last year. This improvement can be attributed to favorable price/volume/mix, the impact of productivity programs, lower transportation costs, and the benefits of recent business acquisitions. Additionally, the operating margin increased by 690 basis points to 18.0% in the latest quarter, reflecting the company's strong operational efficiency and cost management.

Summary

Church & Dwight Co., Inc. delivered a strong performance in its latest quarter, with a notable 10.7% increase in net sales in the Consumer Domestic segment. The company's revenue growth was driven by various factors, including favorable pricing/product mix, volume growth, and the impact of recent acquisitions. Despite facing challenges in certain product lines, the company's overall financial performance was impressive. Additionally, Church & Dwight Co., Inc. achieved significant improvements in gross margin and operating margin, highlighting its operational efficiency and cost management capabilities.

Source documents

Form 10-K  filed on Feb 15, 2024
121 pages scanned

Reference data

Company financials Q4 revenue 1.53B
Analyst estimates Q4 EPS beat by 0.63%
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