Summary
Church & Dwight Co., Inc. reported solid top-line growth in the second quarter and first half of 2011, with net sales increasing by 5.3% and 3.3%, respectively, compared to the prior year periods. This growth was driven by increased product volumes across all segments, foreign exchange rate benefits, and contributions from recently acquired product lines, partially offset by pricing pressures and divestitures. Net income also showed improvement, reflecting higher sales and a lower effective tax rate, notably due to New Jersey's corporate income tax reform. The company successfully completed the acquisition of the BATISTE dry shampoo brand, which is expected to be accreted to earnings. Financial flexibility remains strong, with substantial available borrowing capacity and a net debt position that has decreased from the prior year-end. Management anticipates that cash from operations, combined with existing credit facilities, will be sufficient to fund capital expenditures, dividends, and strategic initiatives such as the planned relocation of operations and lease for a new corporate headquarters.
Financial Highlights
56 data points| Revenue | $701.00M |
| Cost of Revenue | $391.10M |
| Gross Profit | $309.90M |
| R&D Expenses | $14.00M |
| SG&A Expenses | $91.80M |
| Operating Income | $126.30M |
| Interest Expense | $2.20M |
| Net Income | $79.60M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 287.40M |
| Shares Outstanding (Diluted) | 292.60M |
Key Highlights
- 1Net sales increased by 5.3% to $674.9 million in Q2 2011 and by 3.3% to $1,317.2 million in the first six months of 2011, driven by volume growth and acquisitions.
- 2Net income rose to $82.6 million ($0.57/share) in Q2 2011 from $74.3 million ($0.51/share) in Q2 2010, with a lower effective tax rate contributing to the increase.
- 3Acquired the BATISTE dry shampoo brand for $64.8 million in June 2011, adding to the Consumer International segment.
- 4Strong operating cash flow generation of $171.7 million for the first six months of 2011, an increase of $47.9 million year-over-year.
- 5Repaid $90 million in short-term borrowings under the accounts receivable securitization facility in Q1 2011, strengthening the balance sheet.
- 6Announced plans for a new corporate office building, with a 20-year lease starting in early 2013, signaling long-term commitment.
- 7Authorized a new $300 million share repurchase program, demonstrating confidence in financial stability and commitment to shareholder returns.