10-KPeriod: FY2023

CHURCH & DWIGHT CO INC /DE/ Annual Report, Year Ended Dec 31, 2023

Filed February 15, 2024For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported robust net sales growth of 9.2% for the fiscal year ended December 31, 2023, reaching $5.87 billion. This growth was driven by a combination of favorable pricing/product mix (4.4%), increased volumes (0.9%), and the impact of recent acquisitions (3.9%). The company also saw a significant improvement in profitability, with gross margin expanding by 220 basis points to 44.1% and operating margin increasing by 690 basis points to 18.0%, largely due to favorable price/volume/mix, productivity programs, and lower transportation costs. However, excluding a prior year impairment charge, operating margin saw a slight decrease, indicating increased marketing and SG&A expenses related to acquisitions and growth initiatives. The company returned $566.6 million to stockholders through dividends and share repurchases in 2023. Despite facing competitive pressures and inflationary impacts, particularly on discretionary brands like Waterpik, Church & Dwight remains focused on strategic initiatives including cost control, online market share expansion, new product development, and strategic acquisitions to drive future growth. The company also announced a 4% increase in its quarterly dividend, signaling confidence in its financial performance and commitment to shareholder returns.

Financial Highlights

56 data points
Beta

Revenue

$5.87B

44.1% Gross Margin

Net Income

$755.60M

12.9% Net Margin

EPS (Diluted)

$3.05

Total Assets

$8.57B

Cash & Equivalents

$344.50M

Free Cash Flow

$807.10M

Financial Statements
Beta
Revenue$5.87B
Cost of Revenue$3.28B
Gross Profit$2.59B
R&D Expenses$122.40M
SG&A Expenses$889.80M
Operating Income$1.06B
Interest Expense$110.90M
Net Income$755.60M
EPS (Basic)$3.09
EPS (Diluted)$3.05
Shares Outstanding (Basic)244.90M
Shares Outstanding (Diluted)247.60M

Key Highlights

  • 1Net sales increased by 9.2% to $5.87 billion in 2023, driven by pricing, volume, and acquisitions.
  • 2Gross margin improved by 220 basis points to 44.1% in 2023, supported by productivity gains and lower transportation costs.
  • 3Operating margin significantly improved to 18.0% in 2023, compared to 11.1% in the prior year, though this was influenced by a prior year impairment charge.
  • 4The company returned $566.6 million to shareholders through dividends and share repurchases in 2023.
  • 5Consumer Domestic sales grew by 10.7%, driven by strong performance in brands like TheraBreath and Arm & Hammer.
  • 6Consumer International sales increased by 8.9%, with notable contributions from brands like Sterimar and TheraBreath.
  • 7The company announced a 4% increase in its quarterly dividend, signaling confidence in future financial performance.

Frequently Asked Questions

In 2023, Church & Dwight reported net sales of $5.87 billion, an increase of 9.2% compared to 2023. This growth was attributed to favorable pricing/product mix, increased volumes, and contributions from recent acquisitions.

Profitability saw significant improvement in 2023. Gross margin increased by 220 basis points to 44.1%, and operating margin rose substantially to 18.0%, up from 11.1% in the prior year. This improvement was driven by favorable price/volume/mix, productivity programs, and lower transportation costs.

Church & Dwight is focusing on maintaining competitive marketing and trade spending, controlling costs, expanding online market share, and launching new, differentiated products. They also aim to grow global sales and offer a mix of premium and value brands to cater to a wide range of consumers, especially during economic uncertainty where discretionary spending may be reduced.

In 2023, Church & Dwight returned $566.6 million to its stockholders through cash dividends and share repurchases. The company also announced a 4% increase in its regular quarterly dividend in January 2024, demonstrating a commitment to shareholder returns.