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

CHD Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, CHD reported a significant increase in revenue across its segments. Consumer Domestic net sales for 2023 were $4,571.2 million, representing a 10.7% increase compared to the previous year. The components of the net sales change include a 1.0% increase in product volumes sold, a 4.7% increase in pricing/product mix, and a 5.0% contribution from acquired product lines. The net sales increase of 10.7% also reflects the impact of the Hero Acquisition, as well as higher sales of THERABREATH® mouthwash, ARM & HAMMER® cat litter, ARM & HAMMER® liquid detergent, and ARM & HAMMER® baking soda. However, there were declines in sales of FINISHING TOUCH FLAWLESS® hair removal products, VITAFUSION® and L’IL CRITTERS® gummy dietary supplements, and WATERPIK® water flossers.

Strengths

CHD demonstrated strong financial performance in the latest quarter, with a 9.2% growth in net sales compared to the previous year. This growth was driven by gains in both the Consumer Domestic and Consumer International segments, partially offset by lower sales in SPD. The company attributed the gains to favorable pricing/product mix, favorable volumes, and the benefit of recent acquisitions in Consumer Domestic and Consumer International. Additionally, CHD achieved a gross margin of 44.1%, an increase of 220 basis points, primarily due to favorable price/volume/mix, productivity programs, lower transportation costs, and business acquisition benefits. The operating margin also improved significantly, increasing by 690 basis points to 18.0% in 2023 from 11.1% in 2022.

Challenges

Despite the overall strong performance, CHD faced challenges in certain product lines. 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 may indicate potential weaknesses or challenges in these specific product categories.

Noteworthy

The Hero Acquisition, completed on October 13, 2022, played a significant role in driving the increase in net sales for 2023. This acquisition contributed to the overall growth of CHD's revenue in the latest quarter.

Summary

CHD delivered strong revenue growth in the latest quarter, with a 10.7% increase in Consumer Domestic net sales. The company's performance was driven by favorable pricing/product mix, favorable volumes, and the impact of recent acquisitions. CHD also achieved improved gross and operating margins, indicating effective cost management and productivity programs. However, declines in certain product lines pose challenges for the company. Overall, CHD's latest quarter performance demonstrates its ability to drive revenue growth and effectively manage its operations.

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 missed by -5.53%
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