2020 Fourth Quarter Results
- Net Sales growth +13.2%: Domestic +13.8%, Int’l +16.2%
- Organic sales +10.8%: Domestic +11.0%, Int’l +14.9%
- EPS growth +1.7%; Adjusted -3.6%
2020 Full Year Results
- Net Sales growth +12.3%; Organic +9.6%
- EPS: $3.12 (+27.9%), Adjusted $2.83 (+14.6%)
- Cash from operations $990.3 million, +14.6%
Church & Dwight Co., Inc. (NYSE: CHD) today announced
reported full year 2020 EPS increased 27.9% to $3.12 per share.
Adjusted EPS, which excludes a positive acquisition related
earn-out adjustment, grew 14.6% to $2.83, exceeding the Company’s
outlook of 13%.2
Full year net sales grew 12.3% to $4,895.8 million. The Company
continues to experience a significant increase in consumer demand
for many of its products, primarily in response to the COVID-19
pandemic. Volume growth was driven by higher consumption. Organic
sales grew 9.6% driven by volume growth of 8.1% and positive
product mix and pricing of 1.5%.
Reported Q4 net sales were $1,295.3 million, a $151.1 million or
13.2% increase. Organic sales growth of 10.8% exceeded the
Company’s outlook of 8% driven by volume growth of 10.3% and
positive price and product mix of 0.5%. Reported EPS was $0.59 per
share, a 1.7% increase. Adjusted EPS of $0.53, which excludes an
acquisition related earn-out adjustment, exceeded the Company’s
$0.50-$0.52 outlook.² EPS was impacted by higher marketing costs
and awards to the Company’s employees in recognition of their
dedication throughout the pandemic, primarily to manufacturing and
distribution center workers. Revenue growth, gross margin
(excluding the recognition award), and cash from operations all
exceeded the Company’s expectations.
Matthew Farrell, Chief Executive Officer, commented, “In this
unusual time, our focus has been and remains on the safety of our
employees, meeting the needs of our customers and consumers, and
ensuring our brands are even stronger moving forward. I’d like to
recognize all Church & Dwight employees around the world for
their dedication to keeping our Company going during the pandemic,
especially our manufacturing and distribution employees and lab
technicians who are in our facilities every day.
“2020 was an extraordinarily strong year for Church &
Dwight. Both our household and personal care businesses delivered
exceptional volume growth as consumers and retailers focused on
core essentials. Our brands once again experienced strong
consumption in Q4, which continued in January. Shipments are
aligned with consumption. The pandemic drove double-digit
consumption growth in many domestic categories, especially gummy
vitamins, pregnancy test kits, and baking soda. Consumption of
water flossers was positive in Q4, after experiencing double-digit
declines earlier in the year. We remain focused on generating
results both in the short and long term. Our strong results in 2020
enabled us to continue to invest in capacity and capabilities. As
in years past, these actions help the Company enter the coming year
with momentum. Specifically, we invested in higher marketing
spending, surge capacity in manufacturing, R&D, new product
development, consumer research, digital advertising, and predictive
analytics. Online sales as a percentage of total sales topped 14%
of sales in Q4 and 13% for full year 2020 compared to 8% in
2019.
“The International business had a strong quarter despite the
global COVID-19 pandemic, with extremely strong and broad-based
consumption increases across many countries and brands. Specialty
Products sales in Q4 contracted primarily in the non-dairy
segment.”
Fourth Quarter Review
Consumer Domestic net sales were $990.9 million, a $120.1
million or 13.8% increase driven by household and personal care
sales growth and acquisitions. Organic sales increased 11.0% due to
higher volume (+10.5%) and positive price and product mix (+0.5%).
Growth was led by VITAFUSION® and L’IL CRITTERS® gummy vitamins,
ARM & HAMMER® liquid laundry detergent, WATERPIK® oral care
products, OXICLEAN® stain fighter powder, ARM & HAMMER®
clumping cat litter and baking soda, VIVISCAL® hair thinning, and
KABOOM® bathroom cleaners.
Consumer International net sales were $228.5 million, a
$31.9 million or a 16.2% increase, primarily driven by the Global
Markets Group. Organic sales increased 14.9% due to higher volume
(+14.7%) and positive price and product mix (+0.2%). Organic sales
were driven primarily by WATERPIK, VITAFUSION, OXICLEAN, and NAIR®
in the Global Markets Group, FLAWLESS® and WATERPIK in Australia,
WATERPIK, FLAWLESS, and ANUSOL® in the U.K., and ARM & HAMMER
liquid laundry detergent and clumping cat litter, and FLAWLESS
women’s hair removal in Canada.
Specialty Products net sales were $75.9 million, a $0.9
million or a 1.2% decrease. Organic sales decreased primarily due
to lower volume (-2.5%), partially offset by higher pricing
(+1.3%). While volumes decreased year over year, quarterly demand
in the dairy industry improved sequentially with stable milk
prices.
Gross margin decreased 280 basis points to 43.0% due to
the impact of higher manufacturing costs primarily related to
outsourcing, COVID-19 pandemic related expenses, awards to supply
chain employees for their dedication during COVID-19, and higher
tariffs.
Marketing expense was $201.6 million, an increase of
$39.0 million or 24.0%. Marketing expense as a percentage of net
sales increased 140 basis points to 15.6%. Q4 was the highest
quarter of the year for marketing spending as we took the
opportunity to invest behind our brands.
Selling, general, and administrative expense (SG&A)
was $165.2 million or 12.8% of net sales on a reported basis, a 170
basis point decrease. Adjusted SG&A decreased 70 basis points
as sales growth outpaced investments.2
Income from Operations was $190.6 million or 14.6% of net
sales. Adjusted Income from Operations was $168.6 million or 13.0%
of net sales.2
Other Expense of $13.7 million declined slightly due to
lower interest expense resulting from lower average debt
outstanding.
The effective tax rate was 15.1% compared to 18.7% in
2019, a decrease of 360 basis points which includes a planned tax
settlement and higher stock option exercises. The full year rate
was 19.3%.
Operating Cash Flow
For the full year 2020, cash from operating activities increased
14.6% to $990.3 million, a $125.8 million increase from the prior
year due to higher cash earnings and an improvement in working
capital. Capital expenditures for the full year were $98.9 million,
a $25.2 million increase from the prior year to support production
capacity related to increased demand.
At December 31, 2020, cash on hand was $183.1 million, while
total debt was $2,163.9 million.
5.2% Dividend Increase and Share
Repurchase
The Company’s Board of Directors declared a 5.2% increase in the
regular quarterly dividend from $0.24 to $0.2525 per share,
equivalent to an annual dividend of $1.01 per share. This raises
the annual dividend payout from $237 million to approximately $250
million. The quarterly dividend will be payable March 1, 2021 to
stockholders of record at the close of business on February 16,
2021. This is the 25th consecutive year in which the Company has
increased the dividend. The Company has paid a regular consecutive
quarterly dividend for 120 years. In addition, as part of the
Evergreen Share Repurchase Program, in December 2020, the Company
entered an accelerated share repurchase contract with a commercial
bank to purchase $300 million of the Company’s common stock. The
Company paid $300 million to the bank, inclusive of fees, and
received an initial delivery of approximately 3.1 million shares,
which reduced the Company’s shares outstanding. The Company used
cash on hand and short-term borrowings to fund the initial purchase
price. The total amount of shares to be ultimately delivered by the
bank will be determined by the average price per share paid by the
bank during the purchase period, which is expected to end during Q1
of 2021.
Mr. Farrell commented, “This action reflects the Company’s
desire for stockholders to benefit from our strong cash generation
and is an indication of our confidence in the continuation of the
Company’s strong performance. The Company expects to continue to
generate significant cash flow. Our robust cash flow enables us to
return cash to our stockholders while maintaining significant
financial flexibility to continue to pursue acquisitions.”
2021 New Products
Mr. Farrell commented, “Innovation continues to be a big driver
of our success. In support of our long-term strategy to drive
revenue and earnings growth and meet consumer’s needs, we are
pleased to announce our 2021 new product launches.
“In the household products portfolio, we are introducing
OXICLEAN Laundry and Home Sanitizer. It is the first and only
sanitizing product, that consumers add directly to the washing
machine with their regular detergent, that not only boosts stain
fighting performance it also eliminates 99.9% of bacteria and
viruses. The product is also designed for cleaning throughout the
house on a variety of surfaces for a germ-free clean.
“In the personal care portfolio, VITAFUSION has launched
VITAFUSION POWER ZINC™, Elderberry gummies in both adult and kids’
variants, and Super Immune Support to capitalize on increased
consumer interest in immunity. WATERPIK is launching WATERPIK ION,
a water flosser which is 30% smaller and contains a lithium ion
battery that lasts up to four weeks with a single charge and is
specifically designed for smaller bathroom spaces with limited
counter space and electric outlets. In addition, to capitalize on
its success, WATERPIK SONIC-FUSION®, the world’s first flossing
toothbrush, will be upgraded with SONIC-FUSION 2.0, with two brush
head sizes and two brush speeds. FLAWLESS is capitalizing on the
At-Home Beauty and self-care trends with a facial cleanser, a full
body exfoliator for head-to-toe rejuvenating spa-like experience in
the shower, and mani-pedi nail and foot care solutions. Finally,
VIVISCAL is launching Hair Therapy, a powder supplement packaged in
convenient, on-the-go sachets that is formulated to support hair
health.”
Outlook for 2021
Mr. Farrell stated, “We had an extraordinary 2020 and delivered
15% adjusted earnings growth. We expect 2021 to be another strong
year with adjusted EPS of $3.00 to $3.06, an increase of 6-8%,
driven by operating income growth.1 This reflects continued strong
business performance in-line with our Evergreen model.”
Mr. Farrell continued, “We expect full year 2021 reported sales
growth to be approximately 4.5% and organic sales growth to be
approximately 3% after posting almost 10% organic growth in 2020.
In 2021, we expect several categories to remain at elevated
consumption levels, including gummy vitamins, laundry additives,
hair growth supplements, and cat litter. With respect to gummy
vitamins, household penetration is increasing and existing
households are consuming more vitamins. We continue to supplement
our existing gummy manufacturing capacity with third party support
to meet demand.
“We expect modest growth from the laundry category in 2021. Dry
shampoo, condoms, and women’s grooming are expected to improve with
increased consumer mobility. We expect growth in water flossers in
2021 due to the wellness trend and as higher traffic returns to
dental offices. Other categories are expected to pull back from
2020 highs, such as baking soda, toothache, and pregnancy kits.
Additionally, we have confidence in 2021 as we have compelling new
product launches in many categories to help drive growth.
Investments in our International business continue to pay off,
particularly in our Global Markets Group. Finally, our Specialty
Products business is also expected to have a strong year driven by
a more balanced dairy and non-dairy business.
“We expect full year reported gross margin to be up 50 basis
points, with improvement weighted to the back half of 2021 (first
half -50 bps, second half +150 bps). We expect inflation and
tariffs to be offset by productivity, a reduction in COVID-19
incremental costs, and trade promotional efficiency. Marketing
spend in dollars is expected to increase in 2021, but decline as a
percentage of sales by 30 basis points as we return to pre-pandemic
levels. We expect SG&A as a percentage of sales to improve by
20 basis points. As a result of these improvements, we expect
adjusted operating profit margin expansion of 100 basis points,
which exceeds our Evergreen model of +50 basis points.¹ The 2021
effective tax rate is expected to be approximately 21-22%. Cash
flow from operations is expected to be approximately $1 billion. We
expect FLAWLESS and ZICAM to be fully integrated by the end of 2021
and we continue to pursue accretive acquisitions that meet our
strict criteria.
“For Q1, we expect reported sales growth of approximately 3.0%,
organic sales growth of approximately 2.0%, gross margin
contraction as we lap artificially low promotional levels, and
adjusted EPS of $0.80 per share, a 4% decrease over last year’s
adjusted Q1 EPS.1 Our Q1 EPS outlook includes higher marketing
dollars versus a year ago to support our new product launches.”
1 This press release does not provide a forward-looking
reconciliation of adjusted EPS to reported EPS and adjusted
operating margin to reported operating margin, the most directly
comparable GAAP financial measures, expected for 2021 or the first
quarter of 2021, because we are unable to provide such a
reconciliation without unreasonable effort. We have excluded the
changes in the Company’s potential earn-out liability from our
acquisition of the FLAWLESS business from our expected adjusted EPS
for these periods. We are required to review the fair value of the
earn-out liability quarterly based on changes in sales forecasts,
discount rates, volatility assumptions, and other inputs. Our
inability to provide a reconciliation to GAAP EPS for future
periods is due to the uncertainty and inherent difficulty of
predicting what these changes will be on a quarter-by-quarter basis
or on an annual basis. For the same reasons, we are unable to
address the probable significance of the unavailable information,
which could be material to our future results.
2See non-GAAP reporting reconciliations.
Church & Dwight Co., Inc. (NYSE: CHD) will host a conference
call to discuss fourth quarter and year end 2020 results on January
29, 2021 at 10:00 a.m. (ET). The presentation will broadcast online
at investor.churchdwight.com/investors/news-events. Click on Church
& Dwight Co., Inc. Analyst Day 2021 to register for the
webcast. For “listen only”, dial 877-322-9846 within the U.S. and
Canada, or 631-291-4539 internationally, using access code 3264654.
A replay will be available two hours after the call and until
February 5, 2021 at 855-859-2056 using the same access code.
Church & Dwight Co., Inc. (NYSE: CHD) founded in 1846, is
the leading U.S. producer of sodium bicarbonate, popularly known as
baking soda. The Company manufactures and markets a wide range of
personal care, household, and specialty products under recognized
brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®,
SPINBRUSH®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, L’IL CRITTERS®
and VITAFUSION®, BATISTE®, WATERPIK®, FLAWLESS®, and ZICAM®. These
thirteen key brands represent approximately 80% of the Company’s
products sales. For more information, visit the Company’s
website.
Church & Dwight has a strong heritage of commitment to
people and the planet. In the early 1900’s, we began using recycled
paperboard for all packaging of household products. Today,
virtually all our paperboard packaging is from certified,
sustainable sources. In 1970, the ARM & HAMMER® brand
introduced the first nationally distributed, phosphate-free
detergent. That same year, Church & Dwight was honored to be
the sole corporate sponsor of the first annual Earth Day. Church
& Dwight is notably ranked in the 2019 Barron’s 100 Most
Sustainable Companies and on the EPA’s Green Power Partnership Top
100 List of Green Power Users.
For more information, see the Church & Dwight 2019
Sustainability Report at:
https://churchdwight.com/pdf/Sustainability/2019-Sustainability-Report.pdf.
This press release contains forward-looking statements,
including, among others, statements relating to net sales and
earnings growth; the impact of the COVID-19 pandemic and the
Company’s response; gross margin changes; trade, marketing, and
SG&A spending; sufficiency of cash flows from operations;
earnings per share; cost savings programs; consumer demand and
spending; the effects of competition; the effect of product mix;
volume growth, including the effects of new product launches into
new and existing categories; the impact of acquisitions (including
earn-outs); and capital expenditures. Other forward-looking
statements in this release may be identified by the use of such
terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,”
“estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”
or other comparable terms. These statements represent the
intentions, plans, expectations and beliefs of the Company, and are
based on assumptions that the Company believes are reasonable but
may prove to be incorrect. In addition, these statements are
subject to risks, uncertainties and other factors, many of which
are outside the Company’s control and could cause actual results to
differ materially from such forward-looking statements. Factors
that could cause such differences include a decline in market
growth, retailer distribution and consumer demand (as a result of,
among other things, political, economic and marketplace conditions
and events); including those relating to the outbreak of contagious
diseases; other impacts of the COVID-19 pandemic and its impact on
the Company’s operations, customers, suppliers, employees, and
other constituents, and market volatility and impact on the economy
(including causing recessionary conditions), resulting from
nationwide or local or regional outbreaks or increases in
infections and the risk that the Company will not be able to
successfully execute its response plans with respect to the
pandemic or localized outbreaks and the corresponding uncertainty;
the impact of regulatory changes or policies associated with the
COVID-19 pandemic, including continuing or renewed shutdowns of
retail and other businesses in various jurisdictions; the impact of
the CARES Act and other governmental actions; unanticipated
increases in raw material and energy prices; delays or other
problems in manufacturing or distribution; increases in
transportation costs; adverse developments affecting the financial
condition of major customers and suppliers; changes in marketing
and promotional spending; growth or declines in various product
categories and the impact of customer actions in response to
changes in consumer demand and the economy, including increasing
shelf space of private label products; consumer and competitor
reaction to, and customer acceptance of, new product introductions
and features; the Company’s ability to maintain product quality and
characteristics at a level acceptable to our customers and
consumers; disruptions in the banking system and financial markets;
foreign currency exchange rate fluctuations; implications of the
United Kingdom’s withdrawal from the European Union; transition to,
and shifting economic policies in the United States; potential
changes in export/import and trade laws, regulations and policies
of the United States and other countries, including any increased
trade restrictions or tariffs, including the actual and potential
effect of tariffs on Chinese goods imposed by the United States;
issues relating to the Company’s information technology and
controls; the impact of natural disasters on the Company and its
customers and suppliers, including third party information
technology service providers; the integration of acquisitions or
divestiture of assets; the outcome of contingencies, including
litigation, pending regulatory proceedings and environmental
matters; and changes in the regulatory environment.
For a description of additional factors that could cause
actual results to differ materially from the forward-looking
statements, please see Item 1A, “Risk Factors” in the Company’s
annual report on Form 10-K and quarterly reports on Form 10Q. The
Company undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by the U.S. federal
securities laws. You are advised, however, to consult any further
disclosures the Company makes on related subjects in its filings
with the United States Securities and Exchange Commission.
This press release also contains non-GAAP financial
information. Management uses this information in its internal
analysis of results and believes that this information may be
informative to investors in gauging the quality of the Company’s
financial performance, identifying trends in its results and
providing meaningful period-to-period comparisons. The Company has
included reconciliations of these non-GAAP financial measures to
the most directly comparable financial measure calculated in
accordance with GAAP. See the end of this press release for these
reconciliations. These non-GAAP financial measures should not be
considered in isolation or as a substitute for the comparable GAAP
measures. In addition, these non-GAAP financial measures may not be
the same as similar measures provided by other companies due to
potential differences in methods of calculation and items being
excluded. They should be read in connection with the Company’s
financial statements presented in accordance with GAAP.
CHURCH & DWIGHT CO., INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Income (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
December 31,
December 31,
(In millions, except per share data)
2020
2019
2020
2019
Net Sales
$
1,295.3
$
1,144.2
$
4,895.8
$
4,357.7
Cost of sales
737.9
620.2
2,681.6
2,373.7
Gross Profit
557.4
524.0
2,214.2
1,984.0
Marketing expenses
201.6
162.6
591.2
515.0
Selling, general and administrative
expenses
165.2
166.2
593.3
628.8
Income from Operations
190.6
195.2
1,029.7
840.2
Equity in earnings of affiliates
1.2
1.1
6.7
6.6
Other income (expense), net
(14.9
)
(18.6
)
(62.6
)
(73.1
)
Income before Income Taxes
176.9
177.7
973.8
773.7
Income taxes
26.7
33.3
187.9
157.8
Net Income
$
150.2
$
144.4
$
785.9
$
615.9
Net Income per share - Basic
$
0.61
$
0.59
$
3.18
$
2.50
Net Income per share - Diluted
$
0.59
$
0.58
$
3.12
$
2.44
Dividends per share
$
0.24
$
0.23
$
0.96
$
0.91
Weighted average shares outstanding -
Basic
247.9
245.3
246.8
246.2
Weighted average shares outstanding -
Diluted
253.0
250.8
252.2
252.1
CHURCH & DWIGHT CO., INC. AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in millions)
Dec. 31, 2020
Dec. 31, 2019
Assets
Current Assets
Cash and Cash Equivalents
$
183.1
$
155.7
Accounts Receivable
398.8
356.4
Inventories
495.4
417.4
Other Current Assets
35.1
26.9
Total Current Assets
1,112.4
956.4
Property, Plant and Equipment (Net)
612.8
573.0
Equity Investment in Affiliates
9.1
9.7
Trade Names and Other Intangibles
3,110.2
2,750.0
Goodwill
2,229.6
2,079.5
Other Long-Term Assets
340.4
288.8
Total Assets
$
7,414.5
$
6,657.4
Liabilities and Stockholders’
Equity
Short-Term Debt
$
351.4
$
252.9
Other Current Liabilities
1,037.2
839.4
Total Current Liabilities
1,388.6
1,092.3
Long-Term Debt
1,812.5
1,810.2
Other Long-Term Liabilities
1,193.0
1,087.1
Stockholders’ Equity
3,020.4
2,667.8
Total Liabilities and Stockholders’
Equity
$
7,414.5
$
6,657.4
CHURCH & DWIGHT CO., INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash
Flow (Unaudited)
Twelve Months Ended
December 31,
December 31,
(Dollars in millions)
2020
2019
Net Income
$
785.9
$
615.9
Depreciation and amortization
189.7
176.4
Change in fair value of business
acquisition liabilities
(93.7
)
1.3
Deferred income taxes
25.7
5.6
Non-cash compensation
21.5
20.8
Gain on sale of assets
(3.0
)
-
Other
4.9
12.6
Subtotal
931.0
832.6
Changes in assets and liabilities:
Accounts receivable
(13.4
)
(9.2
)
Inventories
(61.9
)
(33.8
)
Other current assets
(10.2
)
4.9
Accounts payable and accrued expenses
168.0
72.8
Income taxes payable
12.2
3.4
Other
(35.4
)
(6.2
)
Net cash from operating
activities
990.3
864.5
Capital expenditures
(98.9
)
(73.7
)
Acquisition
(512.7
)
(475.0
)
Proceeds from sale of assets
7.0
-
Other
(3.5
)
(4.8
)
Net cash (used in) investing
activities
(608.1
)
(553.5
)
Net change in long-term debt
-
(300.0
)
Net change in short-term debt
99.0
251.0
Payment of cash dividends
(237.3
)
(224.1
)
Proceeds from stock option exercises
93.0
52.8
Purchase of treasury stock
(300.0
)
(250.0
)
Payment of business acquisition
liabilities
(14.5
)
-
Deferred financing and other
(0.3
)
(2.6
)
Net cash (used in) financing
activities
(360.1
)
(472.9
)
F/X impact on cash
5.3
0.9
Net change in cash and cash
equivalents
$
27.4
$
(161.0
)
2020 and
2019 Product Line Net Sales
Three Months Ended
Percent
12/31/2020
12/31/2019
Change
Household Products
$
498.1
$
450.6
10.5
%
Personal Care Products
492.8
420.2
17.3
%
Consumer Domestic
$
990.9
$
870.8
13.8
%
Consumer International
228.5
196.6
16.2
%
Total Consumer Net Sales
$
1,219.4
$
1,067.4
14.2
%
Specialty Products Division
75.9
76.8
-1.2
%
Total Net Sales
$
1,295.3
$
1,144.2
13.2
%
Twelve Months Ended
Percent
12/31/2020
12/31/2019
Change
Household Products
$
2,038.5
$
1,821.7
11.9
%
Personal Care Products
1,729.1
1,480.9
16.8
%
Consumer Domestic
$
3,767.6
$
3,302.6
14.1
%
Consumer International
828.2
756.3
9.5
%
Total Consumer Net Sales
$
4,595.8
$
4,058.9
13.2
%
Specialty Products Division
300.0
298.8
0.4
%
Total Net Sales
$
4,895.8
$
4,357.7
12.3
%
Non-GAAP Measures:
The following discussion addresses the non-GAAP measures used in
this press release and reconciliations of these non-GAAP measures
to the most directly comparable GAAP measures. These non-GAAP
financial measures should not be considered in isolation from or as
a substitute for the comparable GAAP measures. The following
non-GAAP measures may not be the same as similar measures provided
by other companies due to differences in methods of calculation and
items and events being excluded.
Organic Sales Growth:
This press release provides information regarding organic sales
growth, namely net sales growth excluding the effect of
acquisitions, divestitures and foreign exchange rate changes.
Management believes that the presentation of organic sales growth
is useful to investors because it enables them to assess, on a
consistent basis, sales trends related to products that were
marketed by the Company during the entirety of relevant periods,
excluding the impact of acquisitions, divestitures, and foreign
exchange rate changes that are out of the control of, and do not
reflect the performance of the Company and management.
Adjusted Selling, General, and Administrative Expense
(SG&A):
This press release also presents adjusted SG&A, namely,
SG&A calculated in accordance with GAAP, as adjusted to exclude
significant one-time items that are not indicative of the Company’s
period-to-period performance. We believe that this metric provides
investors a useful perspective of underlying business trends and
results and provides useful supplemental information regarding our
year over year SG&A expense.
Adjusted Income from Operations:
This press release also presents adjusted income from
operations, namely income from operations calculated in accordance
with GAAP, as adjusted to exclude significant one-time items that
are not indicative of the Company’s period-to-period performance.
We believe that this metric provides investors a useful perspective
of underlying business trends and results and provides useful
supplemental information regarding our year over year income from
operations.
Adjusted EPS:
This press release also presents adjusted earnings per share,
namely, EPS calculated in accordance with GAAP, as adjusted to
exclude significant one-time items that are not indicative of the
Company’s period-to-period performance. We believe that this metric
provides investors a useful perspective of underlying business
trends and results and provides useful supplemental information
regarding our year over year EPS growth.
CHURCH & DWIGHT CO.,
INC.
Organic Sales
Three Months Ended
12/31/2020
Total
Worldwide
Consumer
Consumer
Specialty
Company
Consumer
Domestic
International
Products
Reported Sales Growth
13.2%
14.2%
13.8%
16.2%
-1.2%
Less:
Acquisitions
2.2%
2.3%
2.8%
0.4%
0.0%
Add:
FX / Other
-0.3%
-0.3%
0.0%
-1.7%
0.0%
Divestitures
0.1%
0.1%
0.0%
0.8%
0.0%
Organic Sales Growth
10.8%
11.7%
11.0%
14.9%
-1.2%
Twelve Months Ended
12/31/2020
Total
Worldwide
Consumer
Consumer
Specialty
Company
Consumer
Domestic
International
Products
Reported Sales Growth
12.3%
13.2%
14.1%
9.5%
0.4%
Less:
Acquisitions
3.0%
3.3%
3.4%
3.0%
0.0%
Add:
FX / Other
0.1%
0.1%
0.0%
0.7%
0.0%
Divestitures
0.2%
0.3%
0.0%
1.4%
0.0%
Organic Sales Growth
9.6%
10.3%
10.7%
8.6%
0.4%
CHURCH & DWIGHT CO.,
INC.
Reconciliation of GAAP
Measures to Non-GAAP Measures (Unaudited)
(Dollars in millions, except per share
data)
For the quarter ended December
31, 2020
For the quarter ended December
31, 2019
Change
% of NS
% of NS
Adjusted SG&A
Reconciliation
SG&A - Reported
$
165.2
12.8
%
$
166.2
14.5
%
-170
bps
Flawless Earn-Out Adjustment
22.0
1.6
%
7.0
0.6
%
100
bps
SG&A - Adjusted (non-GAAP)
$
187.2
14.4
%
$
173.2
15.1
%
-70
bps
For the quarter ended December
31, 2020
Adjusted Income
From Operations
% of NS
Income From Operations -
Reported
$
190.6
14.6
%
Flawless Earn-Out Adjustment
-22.0
-1.6
%
Income From Operations -
Adjusted
$
168.6
13.0
%
For the quarter ended December
31, 2020
For the quarter ended December
31, 2019
Change
Adjusted Diluted
Earnings Per Share Reconciliation
Diluted Earnings Per Share -
Reported
$
0.59
$
0.58
1.7
%
Flawless Earn-Out Adjustment
-0.06
-0.03
100.0
%
Diluted Earnings Per Share - Adjusted
(non-GAAP)
$
0.53
$
0.55
-3.6
%
For the year ended December
31, 2020
For the year ended December
31, 2019
Change
Adjusted Diluted
Earnings Per Share Reconciliation
Diluted Earnings Per Share -
Reported
$
3.12
$
2.44
27.9
%
Passport Earn-Out Reversal
-
-0.02
Brazil Loss on Sale
-
0.03
Flawless Earn-Out Adjustment
-0.28
0.02
Gain on Sale of International
Brand
-0.01
-
Diluted Earnings Per Share - Adjusted
(non-GAAP)
$
2.83
$
2.47
14.6
%
Reported and
Organic Forecasted Sales Reconciliation
For the Quarter
For the Year
Ended
Ended
March 31, 2021
December 31, 2021
Reported Sales Growth
3.0%
4.5%
Less: Acquisition
-1.1%
-1.6%
Add: FX / Other
0.1%
0.1%
Organic Sales Growth
2.0%
3.0%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210129005119/en/
Rick Dierker Chief Financial Officer 609-806-1200
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