10-KPeriod: FY2021

CHURCH & DWIGHT CO INC /DE/ Annual Report, Year Ended Dec 31, 2021

Filed February 17, 2022For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported solid top-line growth in 2021, with net sales increasing by 6.0% to $5.19 billion, 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% 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.

Financial Highlights

55 data points
Beta

Revenue

$5.19B

43.6% Gross Margin

Net Income

$827.50M

15.9% Net Margin

EPS (Diluted)

$3.32

Total Assets

$8.00B

Cash & Equivalents

$240.60M

Free Cash Flow

$875.00M

Financial Statements
Beta
Revenue$5.19B
Cost of Revenue$2.93B
Gross Profit$2.26B
R&D Expenses$105.20M
SG&A Expenses$606.70M
Operating Income$1.08B
Interest Expense$54.50M
Net Income$827.50M
EPS (Basic)$3.38
EPS (Diluted)$3.32
Shares Outstanding (Basic)244.90M
Shares Outstanding (Diluted)249.60M

Key Highlights

  • 1Net sales increased by 6.0% to $5.19 billion in 2021, driven by growth in all segments.
  • 2Acquisition of THERABREATH® completed in December 2021, adding a significant oral care brand.
  • 3Gross margin decreased by 160 basis points to 43.6% due to rising input costs (labor, raw materials, transportation) and tariffs.
  • 4Operating margin saw a slight decrease of 20 basis points to 20.8% reflecting the gross margin pressure.
  • 5Diluted earnings per share grew by 6.4% to $3.32.
  • 6Cash provided by operations remained strong at $993.8 million.
  • 7The company returned $747.5 million to stockholders through dividends and share repurchases.

Frequently Asked Questions

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.

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.

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.

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.