2024 Second Quarter Results
- Net Sales +3.9%: Domestic +3.8%, Int’l +9.0%, SPD -8.6%
- Organic Sales1 +4.7%: Domestic +3.8%, Int’l +9.3%, SPD
+3.9%
- Adjusted Gross Margin1 +150 bps
- Reported EPS $0.99, Adjusted EPS $0.931
- YTD Cash from Operations of $499.9 million
2024 Full Year Outlook
- Net Sales +3.5%; Organic Sales +4.0%1
- Adjusted Gross Margin expansion raised to +100 to 110 bps
- Reported EPS +12 to +13%
- Adjusted EPS lower end of +8 to +9% range1
- Cash from Operations ~$1.08 billion
Church & Dwight Co., Inc. (NYSE: CHD) today announced the
Company exceeded its outlook with stronger than expected sales
growth and gross margin expansion. In the second quarter, net sales
grew 3.9% to $1,511.2 million. The Company drove strong consumer
demand across its portfolio in Q2. Organic sales grew 4.7% driven
by volume of 3.5% and positive product mix and pricing of 1.2%.
Reported gross margin expanded by 320 basis points, and reported
EPS was $0.99, an increase of 11.2%, partially impacted by a
favorable ruling and rebate related to historical tariff payments.
Adjusted gross margin expanded by 150 basis points, and adjusted
EPS was $0.93, an increase of 1.1%. Second quarter Adjusted EPS
exceeded the Company’s outlook of $0.83 driven by
higher-than-expected sales growth and gross margin expansion.
Matthew Farrell, Chief Executive Officer, commented, “We are
really pleased with another strong quarter. The Company is
performing well with all three divisions delivering organic growth.
Our outstanding Q2 results reflect the strength of our brands, the
early success of our new products, and our perennial focus on
execution. Volume was the primary driver of organic growth, and we
expect volume growth to continue for the rest of the year.
Marketing as a percent of sales increased 100 basis points driving
strong consumption and share gains. Global online sales grew to
21.2% of total consumer sales in Q2. And finally, the combination
of strong sales, margin expansion, and efficient working capital
management resulted in strong cash flow generation in the first
half, with over $1 billion of cash from operations expected in the
full year.
“Organic revenue growth was broad-based as all three businesses
posted strong results. The Domestic Division grew 3.8% organically
with five of our seven power brands growing share. Domestic
consumption of our products outpaced organic sales primarily due to
retailer inventory reductions and prior year distribution gains for
HERO™.
"The International Division grew 9.3% organically, driven by
growth in our country subsidiaries and our Global Markets Group. In
July, we completed the previously announced acquisition of
Graphico, our Japan based distributor.
“Our Specialty Products Division grew organic revenue 3.9% while
we continued the strategy of right sizing this business to focus on
more profitable segments. In Q1, the company shut down the Megalac™
dairy supplement business. In Q2, we exited the food safety
business.”
Second Quarter Review
Consumer Domestic net sales were $1,170.6 million, a
$42.4 million or 3.8% increase driven by both household and
personal care sales growth. Organic sales increased 3.8% due to
volume (+3.3%) and price and product mix (+0.5%). Growth was led by
THERABREATH™ mouthwash, ARM & HAMMER™ Cat Litter, HERO™ acne
products, ARM & HAMMER™ Liquid Detergent, and XTRA™ Liquid
Detergent, partially offset by declines in the vitamin business and
FLAWLESS™.
Consumer International net sales were $263.7 million, a
$21.8 million or 9.0% increase. Organic sales increased 9.3% due to
a combination of higher volume (+4.6%) and price and product mix
(+4.7%). Growth was led by HERO, THERABREATH and vitamins.
Specialty Products net sales were $76.9 million, a $7.2
million or 8.6% decrease including the impact of the Q1 2024
shutdown of the Megalac business. Organic sales increased 3.9% due
to higher volume (+4.1%).
Gross margin increased 320 basis points to 47.1%
reflecting a one-time gain on a favorable tariff ruling. Excluding
this impact, adjusted gross margin was 45.4%, an increase of 150
basis points due to improved productivity, volume and mix, net of
the impact of higher manufacturing costs.
Marketing expense was $152.4 million, a $20.2 million
increase. Marketing expenses as a percentage of net sales increased
100 basis points to 10.1% as we continue to invest in our brands
and new products.
Selling, general, and administrative expense (SG&A)
was $222.8 million, including $5.2 million of charges related to
restricted stock that was issued for the HERO acquisition. Adjusted
SG&A was $217.61 million or 14.4% of net sales, a 20 basis
points increase primarily due to investments in International,
R&D and costs related to the Graphico acquisition.
Income from Operations was $336.9 million. Adjusted
Income from Operations was $316.01 million, an increase of 5.0%
inclusive of higher marketing and SG&A investments.
Other Expense decreased $7.8 million primarily due to
lower outstanding debt and higher interest income.
The effective tax rate was 24.0% compared to 17.9% in Q2
2023. The rate was 610 basis points lower in Q2 2023 primarily due
to higher stock option exercises. The expected effective tax rate
for the full year is unchanged at approximately 23%.
Operating Cash Flow
For the first six months of 2024, cash from operations was
$499.9 million, a decrease of $9.3 million as higher cash earnings
were offset by an investment in higher working capital. We now
expect full year cash flow from operations to be approximately
$1.08 billion (previously $1.05 billion). Capital expenditures for
the first six months were $76.6 million, a $13.4 million increase
from the prior year as capacity expansion projects proceed as
planned.
At June 30, 2024, cash on hand was $491.7 million, while total
debt was $2.2 billion.
2024 New Products
Mr. Farrell commented, “Product innovation continues to be a big
driver of our success and we are excited about our new product
launches. Through the first half of 2024, we are encouraged by
consumer enthusiasm for several of our new product
introductions.
“ARM & HAMMER™ Laundry launched Deep Clean™ Liquid and Deep
Clean Unit Dose Laundry Detergent, our most premium ARM &
HAMMER laundry detergent, entering the mid-tier of the category and
delivering a superior clean at the right value.
“ARM & HAMMER™ Laundry launched POWER SHEETS™ Laundry
Detergent online in August 2023. This innovative laundry solution
is effective, convenient, and eliminates plastic bottle waste. ARM
& HAMMER is the first major brand to offer a detergent sheet in
the U.S. Due to its online success, POWER SHEETS™ are now available
in select brick & mortar retailers.
“ARM & HAMMER™ Hardball™ Clumping Litter has expanded
nationally after successful in-market testing in 2023. This
plant-based litter is lightweight and creates virtually
indestructible clumps for no-mess scooping. We expect this new
litter to help ARM & HAMMER capture a greater share of the
lightweight litter category.
“THERABREATH™, the #1 alcohol-free mouthwash brand, has entered
the antiseptic segment of the category with the launch of
THERABREATH Deep Clean Oral Rinse. Antiseptic mouthwashes account
for 30% of the category. This product is formulated to kill 99.9%
of germs that cause bad breath, plaque & gingivitis without the
burn.
“BATISTE™, the global leader in dry shampoo, is meeting
consumers’ desire for longer-lasting results with new BATISTE Sweat
Activated and BATISTE Touch Activated dry shampoos. These
breakthrough products are formulated with advanced technology and
release a burst of fragrance whenever you sweat or touch your
hair.
“HERO™ continues to drive the majority of growth in the acne
category as the #1 patch brand in the U.S. In 2024, HERO will
continue to launch innovative solutions in patches combined with
adjacent products, such as Dissolve Away Daily Cleansing Balm,
which will broaden our offerings of gentle and effective solutions
for acne-prone skin.”
Outlook for 2024
Mr. Farrell stated, “We completed an exceptional first half
delivering strong sales growth, gross margin expansion, and
earnings growth. The Company ranked #1 out of our top 10 CPG peers
in Q2 dollar consumption growth and #2 in volume growth and we
continue to grow share. Despite an uncertain consumer environment,
we remain confident about 2024 and will continue to focus on
offering high quality products to consumers at the right value. We
are thrilled with the early success of our new product launches.
This outlook reflects strong growth across all key measures,
including reported and organic sales, volume, gross margin
expansion, operating income growth and cash flow.
“Category consumption growth in both dollars and units has
moderated as the consumer remains under pressure. In June and July
we saw consumption dollar growth slow in our eight main categories
to 2% from 4.5% in the first 5 months of the year. While we expect
our brands to grow faster than our categories in the second half,
we are tightening our organic revenue outlook and now expect full
year organic sales growth to be approximately 4% (previously
4-5%).1 Reported sales growth is now expected to be slightly lower
at approximately 3.5% reflecting an impact from divestitures as
well as a negative currency impact.
“We are raising our outlook for full year adjusted gross margin
expansion to approximately 100-110 basis points versus 2023
(previously 75 basis points). We continue to expect carryover
product pricing, mix, higher volume and productivity to offset
higher manufacturing costs.
“We will continue to invest behind our brands and continue to
expect marketing as a percentage of sales to be approximately
11%.
“Adjusted SG&A is now expected to be higher as a percent of
sales compared to 2023 (previously expected to be flat) reflecting
incremental costs related to the Graphico acquisition and higher
incentive compensation compared to our prior outlook.
“We now expect full year reported EPS growth to be approximately
12 to 13% (previously 9.5 to 10.5%) and adjusted EPS growth to be
at the lower end of the 8 to 9% range1. We continue to expect our
tax rate to be approximately 23%.
“Cash flow from operations is now expected to be approximately
$1.08 billion (previously $1.05).
“We expect 2024 capital expenditures of approximately $180
million as we complete the major capacity investments that were
initiated in 2023. We expect capital spending to return to
historical levels (approximately 2% of sales) in 2025. Our capital
allocation priorities remain unchanged, and we will pursue
accretive acquisitions that meet our strict criteria, with an
emphasis on fast-moving consumable products, similar to our last 3
acquisitions (ZICAM, THERABREATH, and HERO).
“For Q3, we expect reported sales growth of approximately 2.5%
and organic sales growth of approximately 3%1. We expect gross
margin expansion and a significant increase in marketing spending
to support our innovation pipeline. As a result, we expect reported
EPS of $0.65 and Adjusted EPS of $0.67 per share, down 10% versus
last year’s adjusted Q3 EPS.”1
1 Organic Sales, Adjusted Gross Margin, Adjusted SG&A,
Adjusted Income from Operations and Adjusted EPS are non-GAAP
measures. See non-GAAP reconciliations included at the end of this
release.
Church & Dwight Co., Inc. (NYSE: CHD) will host a webcast to
discuss second quarter 2024 results on August 2, 2024, at 10:00
a.m. (ET). The webcast will be broadcast online at
https.//investor.churchdwight.com/investors/news-events. It will
also be available for replay from August 2, 2024, to August 9,
2024.
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®, ZICAM®, THERABREATH® and
HERO®. For more information, visit the Company’s website.
Church & Dwight has a 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. In 2023, our continued progress earned continued
public recognition, including the Newsweek Magazine’s Americas Most
Responsible and America’s Greenest Companies lists, the EPA’s Green
Power Partnership-Top 100 list, the 2023 Wall Street Journal
Management Top 250 List, the 2022/2023 Forbes Magazine: Americas
Best Midsize Employer Award and the FTSE4Good Index Series, amongst
others.
For more information, see the Church & Dwight 2023
Sustainability Report at:
https://churchdwight.com/responsibility/
This press release contains forward-looking statements,
including, among others, statements relating to net sales and
earnings growth; gross margin changes; trade, marketing, and
SG&A spending; recessionary conditions; interest rates;
inflation; 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 contributions to recessionary conditions), resulting
from global, nationwide or local or regional outbreaks or increases
in infections, new variants, 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 new legislation such as the U.S. CARES
Act, the EU Medical Device Regulation, new cosmetic and device
regulations in Mexico, and the U.S. Modernization of Cosmetic
Regulation Act; the impact on the global economy of the
Russia/Ukraine war and increased conflict in the Middle East,
including the impact of export controls and other economic
sanctions; potential recessionary conditions or economic
uncertainty; the impact of continued shifts in consumer behavior,
including accelerating shifts to on-line shopping; unanticipated
increases in raw material and energy prices, including as a result
of the Russia/Ukraine war, increased conflict in the Middle East or
other inflationary pressures; delays and increased costs in
manufacturing and distribution; increases in transportation costs;
labor shortages; the impact of price increases for our products;
the impact of inflationary conditions; the impact of supply chain
and labor disruptions; the impact of severe or inclement weather on
raw material and transportation costs; adverse developments
affecting the financial condition of major customers and suppliers;
competition; 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 or on-line share of
private label and retailer-branded products or other changes in the
retail environment; 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; the Company’s
borrowing capacity and ability to finance its operations and
potential acquisitions; higher interest rates; foreign currency
exchange rate fluctuations; 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; increased or changing regulation regarding the Company’s
products and its suppliers in the United States and other countries
where it or its suppliers operate; market volatility; issues
relating to the Company’s information technology and controls; the
impact of natural disasters, including those related to climate
change, on the Company and its customers and suppliers, including
third party information technology service providers; integrations
of acquisitions or divestiture of assets; the outcome of
contingencies, including litigation, pending regulatory proceedings
and environmental matters; and changes in the regulatory
environment in the countries where we do business.
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 10-Q. 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
Six Months Ended
(In millions, except per share data)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net Sales
$
1,511.2
$
1,454.2
$
3,014.5
$
2,884.0
Cost of sales
799.1
815.3
1,615.4
1,623.1
Gross Profit
712.1
638.9
1,399.1
1,260.9
Marketing expenses
152.4
132.2
304.4
254.5
Selling, general and administrative
expenses
222.8
213.1
452.8
420.9
Income from Operations
336.9
293.6
641.9
585.5
Equity in earnings of affiliates
3.1
2.0
4.2
6.4
Other income (expense), net
(19.5
)
(26.2
)
(41.5
)
(53.7
)
Income before Income Taxes
320.5
269.4
604.6
538.2
Income taxes
77.0
48.2
133.4
113.8
Net Income
$
243.5
$
221.2
$
471.2
$
424.4
Net Income per share - Basic
$
1.00
$
0.90
$
1.93
$
1.74
Net Income per share - Diluted
$
0.99
$
0.89
$
1.91
$
1.72
Dividends per share
$
0.28
$
0.27
$
0.57
$
0.54
Weighted average shares outstanding -
Basic
244.3
245.0
243.9
244.4
Weighted average shares outstanding -
Diluted
247.0
247.9
246.5
247.4
CHURCH & DWIGHT CO., INC. AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in millions)
June 30, 2024
December 31, 2023
Assets
Current Assets
Cash and Cash Equivalents
$
491.7
$
344.5
Accounts Receivable
587.9
526.9
Inventories
627.3
613.3
Other Current Assets
48.3
45.0
Total Current Assets
1,755.2
1,529.7
Property, Plant and Equipment (Net)
943.6
927.7
Equity Investment in Affiliates
12.8
12.0
Trade Names and Other Intangibles
3,244.7
3,302.3
Goodwill
2,432.6
2,431.5
Other Long-Term Assets
373.2
366.0
Total Assets
$
8,762.1
$
8,569.2
Liabilities and Stockholders’
Equity
Short-Term Debt
$
6.1
$
3.9
Current portion of Long-Term debt
0.0
199.9
Other Current Liabilities
1,143.6
1,218.2
Total Current Liabilities
1,149.7
1,422.0
Long-Term Debt
2,207.6
2,202.2
Other Long-Term Liabilities
1,099.3
1,089.6
Stockholders’ Equity
4,305.5
3,855.4
Total Liabilities and Stockholders’
Equity
$
8,762.1
$
8,569.2
CHURCH & DWIGHT CO., INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash
Flow (Unaudited)
Six Months Ended
(Dollars in millions)
June 30, 2024
June 30, 2023
Net Income
$
471.2
$
424.4
Depreciation and amortization
117.2
110.7
Deferred income taxes
(7.4
)
(1.9
)
Non-cash compensation
40.2
39.5
Other
4.2
(1.8
)
Subtotal
625.4
570.9
Changes in assets and liabilities:
Accounts receivable
(62.2
)
(32.4
)
Inventories
(8.2
)
(24.3
)
Other current assets
1.7
8.8
Accounts payable
61.0
(4.7
)
Accrued expenses
(108.8
)
(12.4
)
Income taxes payable
0.9
6.6
Other
(9.9
)
(3.3
)
Net cash from operating
activities
499.9
509.2
Capital expenditures
(76.6
)
(63.2
)
Acquisition
(19.9
)
0.0
Proceeds from sale of assets
6.6
0.0
Other
(1.6
)
(6.0
)
Net cash (used in) investing
activities
(91.5
)
(69.2
)
Net change in long-term debt
(200.2
)
(200.0
)
Net change in short-term debt
2.5
(70.6
)
Payment of cash dividends
(138.2
)
(133.0
)
Proceeds from stock option exercises
79.5
88.3
Deferred financing and other
(1.0
)
(0.1
)
Net cash (used in) financing
activities
(257.4
)
(315.4
)
F/X impact on cash
(3.8
)
2.0
Net change in cash and cash
equivalents
$
147.2
$
126.6
2024 and
2023 Product Line Net Sales
Three Months Ended
Percent
6/30/2024
6/30/2023
Change
Household Products
$
653.2
$
619.2
5.5
%
Personal Care Products
517.4
509.0
1.7
%
Consumer Domestic
$
1,170.6
$
1,128.2
3.8
%
Consumer International
263.7
241.9
9.0
%
Total Consumer Net Sales
$
1,434.3
$
1,370.1
4.7
%
Specialty Products Division
76.9
84.1
-8.6
%
Total Net Sales
$
1,511.2
$
1,454.2
3.9
%
Six Months Ended
Percent
6/30/2024
6/30/2023
Change
Household Products
$
1,292.1
$
1,220.8
5.8
%
Personal Care Products
1,043.7
1,024.3
1.9
%
Consumer Domestic
$
2,335.8
$
2,245.1
4.0
%
Consumer International
518.7
472.5
9.8
%
Total Consumer Net Sales
$
2,854.5
$
2,717.6
5.0
%
Specialty Products Division
160.0
166.4
-3.8
%
Total Net Sales
$
3,014.5
$
2,884.0
4.5
%
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 Gross Margin:
This press release provides information regarding adjusted gross
margin, namely gross margin 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 gross
margin.
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
6/30/2024
Total
Worldwide
Consumer
Consumer
Specialty
Company
Consumer
Domestic
International
Products
Reported Sales Growth
3.9%
4.7%
3.8%
9.0%
-8.6%
Less:
Acquisitions
0.0%
0.1%
0.0%
0.1%
0.0%
Add:
FX / Other
0.1%
0.1%
0.0%
0.4%
0.0%
Divestitures
0.7%
0.0%
0.0%
0.0%
12.5%
Organic Sales Growth
4.7%
4.7%
3.8%
9.3%
3.9%
Six Months Ended
6/30/2024
Total
Worldwide
Consumer
Consumer
Specialty
Company
Consumer
Domestic
International
Products
Reported Sales Growth
4.5%
5.0%
4.0%
9.8%
-3.8%
Less:
Acquisitions
0.0%
0.0%
0.0%
0.1%
0.0%
Add:
FX / Other
-0.1%
-0.1%
0.0%
-0.6%
0.0%
Divestitures
0.5%
0.0%
0.0%
0.0%
9.3%
Organic Sales Growth
4.9%
4.9%
4.0%
9.1%
5.5%
CHURCH & DWIGHT CO.,
INC.
Reconciliation of GAAP
Measures to Non-GAAP Measures (Unaudited)
(Dollars in millions, except per share
data)
For the quarter ended June 30,
2024
For the quarter ended June 30,
2023
Change
% of NS
% of NS
Adjusted Gross Margin
Reconciliation
Gross Margin - Reported
$
712.1
47.1
%
$
638.9
43.9
%
320
bps
Tariff Ruling
(26.1
)
-1.7
%
0.0
0.0
%
-170
bps
Gross Margin - Adjusted
(non-GAAP)
$
686.0
45.4
%
$
638.9
43.9
%
150
bps
For the quarter ended June 30,
2024
For the quarter ended June 30,
2023
Change
% of NS
% of NS
Adjusted SG&A
Reconciliation
SG&A - Reported
$
222.8
14.7
%
$
213.1
14.6
%
10
bps
Hero Restricted Stock
(5.2
)
-0.3
%
(7.3
)
-0.4
%
10
bps
SG&A - Adjusted (non-GAAP)
$
217.6
14.4
%
$
205.8
14.2
%
20
bps
For the quarter ended June 30,
2024
For the quarter ended June 30,
2023
Change
Adjusted Income From Operations
% of NS
% of NS
Income From Operations -
Reported
$
336.9
22.3
%
$
293.6
20.2
%
210
bps
Hero Restricted Stock
5.2
0.3
%
7.3
0.4
%
-10
bps
Tariff Ruling
(26.1
)
-1.7
%
0.0
0.0
%
-170
bps
Income From Operations - Adjusted
(non-GAAP)
$
316.0
20.9
%
$
300.9
20.6
%
30
bps
For the quarter ended June 30,
2024
For the quarter ended June 30,
2023
Change
Adjusted Diluted Earnings Per Share
Reconciliation
Diluted Earnings Per Share -
Reported
$
0.99
$
0.89
11.2
%
Hero Restricted Stock
0.02
0.03
Tariff Ruling
(0.08
)
0.00
Diluted Earnings Per Share - Adjusted
(non-GAAP)
$
0.93
$
0.92
1.1
%
Reported
and Organic Forecasted Sales Reconciliation
For the Quarter
For the Year
Ended
Ended
September 30, 2024
December 31, 2024
Reported Sales Growth
2.5%
3.5%
Acquisition
-0.3%
-0.2%
Divestiture/Other
0.7%
0.7%
FX
0.1%
0.0%
Organic Sales Growth
3.0%
4.0%
For the quarter ended
September 30, 2024
For the quarter ended
September 30, 2023
Change
Adjusted Diluted
Earnings Per Share Reconciliation (Forecasted)
Diluted Earnings Per Share -
Reported
$
0.65
$
0.71
-8.5
%
Hero Restricted Stock
0.02
0.03
Diluted Earnings Per Share - Adjusted
(non-GAAP)
$
0.67
$
0.74
-9.5
%
For the year ended December
31, 2024
For the year ended December
31, 2023
Change
Adjusted Diluted
Earnings Per Share Reconciliation (Forecasted)
Diluted Earnings Per Share -
Reported
$ 3.42 to 3.45
$
3.05
12% to 13
%
Hero Restricted Stock
0.08
0.12
Tariff Ruling
(0.08
)
0.00
Diluted Earnings Per Share - Adjusted
(non-GAAP)
$ 3.42 to 3.45
$
3.17
8% to 9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802598571/en/
Rick Dierker Chief Financial Officer 609-806-1200
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