10-KPeriod: FY2009

CHURCH & DWIGHT CO INC /DE/ Annual Report, Year Ended Dec 31, 2009

Filed February 24, 2010For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported a strong performance in their 2010 10-K filing for the fiscal year ending December 31, 2009. The company demonstrated revenue growth driven by higher volumes, improved sales mix, and price increases across its key product categories. Significant investments in marketing and product development were made to support new product introductions and brand strength. The company also successfully navigated a challenging economic environment by focusing on its core "power brands" and implementing cost-efficiency measures, including the completion of a new manufacturing facility in York, Pennsylvania, which improved operational efficiencies. Financially, CHD showed a healthy increase in net sales and income from operations, supported by favorable commodity costs and successful cost reduction programs. The company also managed its debt effectively, reducing its overall debt levels and strengthening its balance sheet. The acquisition of the Orajel brand in the previous year continued to contribute positively to results. Despite ongoing competitive pressures and economic uncertainties, Church & Dwight appeared well-positioned due to its diversified brand portfolio and focus on consumer staples.

Financial Highlights

55 data points
Beta

Revenue

$2.52B

43.7% Gross Margin

Net Income

$243.50M

9.7% Net Margin

EPS (Diluted)

$0.85

Total Assets

$3.12B

Cash & Equivalents

$447.10M

Free Cash Flow

$265.50M

Financial Statements
Beta
Revenue$2.52B
Cost of Revenue$1.42B
Gross Profit$1.10B
R&D Expenses$55.10M
SG&A Expenses$354.50M
Operating Income$412.90M
Interest Expense$35.60M
Net Income$243.50M
EPS (Basic)$0.86
EPS (Diluted)$0.85
Shares Outstanding (Basic)281.60M
Shares Outstanding (Diluted)286.00M

Key Highlights

  • 1Net sales increased by approximately 4% to $2.52 billion in 2009 compared to 2008, driven by price increases, improved sales mix, and higher volumes.
  • 2Income from operations grew by approximately 21% to $412.9 million in 2009, reflecting improved gross margins and effective cost management.
  • 3The company completed the construction and start-up of a new integrated laundry detergent manufacturing plant and distribution center in York, Pennsylvania, enhancing operational efficiency.
  • 4A pre-tax gain of $20 million was recognized from a patent infringement litigation settlement with Abbott Laboratories.
  • 5Marketing expenses increased by 20% to $353.6 million, supporting key brands and new product initiatives.
  • 6The company successfully reduced total debt by $39.8 million to $816.3 million in 2009 and improved its debt-to-capitalization ratio to 34%.

Frequently Asked Questions

Revenue growth in 2009 was primarily driven by higher selling prices, an improved sales mix, and increased sales volumes across its product lines. The contribution from products acquired in the Orajel acquisition in July 2008 also positively impacted revenue.

Church & Dwight benefited from lower commodity costs for materials like surfactants, diesel fuel, and paper packaging. The company also implemented cost reduction programs and realized efficiencies from cost improvement initiatives and the new York, Pennsylvania facility. However, some commodity costs, such as soda ash, did increase.

Key events included the completion of the new York, Pennsylvania manufacturing facility, a $20 million pre-tax gain from settling patent litigation with Abbott Laboratories, and the sale of certain non-core personal care product lines. The company also incurred charges related to the closure of its North Brunswick, New Jersey facility.

The company reported a total debt of $816.3 million as of December 31, 2009, a decrease from the prior year. It had significant cash and cash equivalents, along with substantial availability under its revolving credit facility and accounts receivable securitization facility, indicating strong liquidity. The company anticipates these resources will be sufficient to meet its capital expenditure and debt obligations.