01—Abstract
Summary
Summary of the 10-K filed February 17, 2022. Cited figures are marked; the original filing is the authoritative source.
Church & Dwight Co., Inc. (CHD) reported solid top-line growth in 2021, with net sales increasing by 6.0% to $5.19 billiona, driven by gains across all three operating segments.
This growth was primarily attributed to favorable pricing/product mix in the Consumer Domestic and Specialty Products Divisions (SPD), alongside increased volumes in Consumer International and SPD. The company successfully integrated the acquisition of THERABREATH in late 2021, further strengthening its oral care portfolio. Despite the sales growth, gross margin saw a decline of 160 basis points to 43.6%b due to increased manufacturing, labor, raw material, and transportation costs.
These inflationary pressures were partially offset by productivity programs and acquisition benefits. The company is actively managing these cost pressures through strategic price increases across its brand portfolio and is investing in both short-term and long-term capacity enhancements. Looking ahead, CHD aims to continue its growth trajectory through strategic acquisitions, innovation, and strong brand management.
02—Key points
Key Highlights
- Net sales increased by 6.0% to $5.19 billion in 2021, driven by growth in all segments.
- Acquisition of THERABREATH® completed in December 2021, adding a significant oral care brand.
- Gross margin decreased by 160 basis points to 43.6% due to rising input costs (labor, raw materials, transportation) and tariffs.
- Operating margin saw a slight decrease of 20 basis points to 20.8% reflecting the gross margin pressure.
- Diluted earnings per share grew by 6.4% to $3.32.
- Cash provided by operations remained strong at $993.8 million.
- The company returned $747.5 million to stockholders through dividends and share repurchases.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Church & Dwight Co Inc kept $0.16.
- Revenue$5.19B100.0%
- Cost of revenue−$2.93B56.4%
- Gross profit$2.26B43.6%
- Operating costs−$1.18B22.8%
- Operating income$1.08B20.8%
- Interest, other & tax−$251.6M4.8%
- Net income$827.5M15.9%
Where FY2021 revenue went
$5.19B- Cost of revenue: $2.93B, 56% of revenue
- Net income: $827.5M, 16% of revenue
- R&D: $105.2M, 2.0% of revenue
- SG&A: $606.7M, 12% of revenue
- Other operating costs: $472.5M, 9.1% of revenue
- Interest, other & tax: $251.6M, 4.8% of revenue
Kept 16% as net incomeR&D $105.2M · 2.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 17, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $5.19B$4.90B | +6.0% |
| Cost of Revenue | $2.93B$2.68B | +9.1% |
| Gross Profit | $2.26B$2.21B | +2.2% |
| R&D Expenses | $105.20M$102.60M | +2.5% |
| SG&A Expenses | $606.70M$593.30M | +2.3% |
| Operating Income | $1.08B$1.03B | +4.8% |
| Interest Expense | $54.50M$61.00M | −10.7% |
| Net Income | $827.50M$785.90M | +5.3% |
| EPS (Basic) | $3.38$3.18 | +6.3% |
| EPS (Diluted) | $3.32$3.12 | +6.4% |
| Shares Outstanding (Basic) | 244.90M246.80M | −0.8% |
| Shares Outstanding (Diluted) | 249.60M252.20M | −1.0% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Church & Dwight's sales growth in 2021?
Church & Dwight's net sales grew 6.0% in 2021, primarily driven by favorable pricing/product mix in the Consumer Domestic and Specialty Products Divisions, along with increased volumes in the Consumer International and Specialty Products Divisions. Acquisitions, including THERABREATH, also contributed to the sales growth.
What impacted the company's gross margin in 2021?
Gross margin decreased by 160 basis points to 43.6% in 2021. This was primarily due to higher manufacturing costs, including labor, raw materials, and components, as well as increased transportation costs and tariffs. These factors were partially offset by favorable pricing/volume/mix, productivity programs, and acquisition benefits.
How is Church & Dwight managing inflationary pressures and supply chain challenges?
Church & Dwight is managing these challenges by implementing strategic price increases across its product portfolio, increasing short-term manufacturing capacity, working closely with suppliers and contract manufacturers, and investing in long-term capacity enhancements. They are also focused on cost control measures and productivity programs.
What is the company's strategy for future growth?
The company's strategic goals include maintaining competitive marketing and trade spending, controlling costs, continuing to develop and launch new products, and pursuing strategic acquisitions. They also aim to grow their product sales globally and maintain a mix of premium and value brands.
06—Continue