Summary
Church & Dwight Co., Inc. (CHD) in its 2014 10-K filing demonstrated a commitment to expanding its brand portfolio and market reach. The company reported net sales growth of 3.2% to $3,297.6 million, driven by volume increases across all three segments and the acquisition of Lil' Drug Store Brands. Despite this growth, gross margins saw a slight decrease to 44.1% due to increased promotional spending, higher commodity costs, and currency fluctuations. Key strategic initiatives for 2015 included continued focus on its "mega brands" (ARM & HAMMER, OXICLEAN, TROJAN, and L’IL CRITTERS/VITAFUSION), which represent a significant portion of sales and profits. The company also highlighted its efforts to combat competitive pressures, particularly in the laundry detergent category, through product innovation and marketing investments. CHD's financial health appears robust, supported by strong cash flow from operations and a commitment to returning value to shareholders through dividends and share repurchases.
Financial Highlights
56 data points| Revenue | $3.30B |
| Cost of Revenue | $1.84B |
| Gross Profit | $1.45B |
| R&D Expenses | $59.80M |
| SG&A Expenses | $394.80M |
| Operating Income | $641.20M |
| Interest Expense | $27.40M |
| Net Income | $413.90M |
| EPS (Basic) | $1.53 |
| EPS (Diluted) | $1.51 |
| Shares Outstanding (Basic) | 270.20M |
| Shares Outstanding (Diluted) | 275.00M |
Key Highlights
- 1Net sales increased by 3.2% to $3,297.6 million in 2014, with growth across all three segments (Consumer Domestic, Consumer International, and Specialty Products Division).
- 2Gross margin decreased by 90 basis points to 44.1% in 2014, attributed to higher promotional spending, commodity costs, and currency fluctuations.
- 3The company acquired Lil' Drug Store Brands, adding approximately $46 million in annual sales, and closed on the VI-COR acquisition shortly after year-end.
- 4Church & Dwight continued to focus on its "mega brands" (ARM & HAMMER, OXICLEAN, TROJAN, and L’IL CRITTERS/VITAFUSION), which accounted for about 60% of sales and profits in 2014.
- 5The company returned $646 million to stockholders in 2014 through dividends ($167.5 million) and share repurchases ($479 million).
- 6Significant competition was noted in the laundry detergent category, with specific mention of P&G's strategic responses impacting the market.
- 7The company maintained a strong financial position, with $423 million in cash and cash equivalents at year-end 2014 and a leverage ratio of 1.5, well within its credit facility covenants.