Summary
Church & Dwight Co., Inc. (CHD) reported net sales of $1,238.9 million for the first quarter ended March 31, 2021, an increase of 6.3% year-over-year. This growth was driven by increased product volumes across its Consumer Domestic and International segments, alongside a positive pricing/product mix and the inclusion of acquired product lines, notably the Zicam acquisition. Despite a 3.8% decrease in Income from Operations to $302.6 million, largely due to a significant increase in SG&A expenses and higher manufacturing costs, the company managed to deliver a diluted Net Income per share of $0.88. The company's balance sheet shows total assets of $7,380.9 million and total liabilities of $4,169.7 million as of March 31, 2021. Cash flow from operations decreased significantly to $100.2 million from $236.5 million in the prior year, primarily due to an increase in working capital, particularly higher inventories and accounts receivable. The company also returned value to shareholders through $61.9 million in cash dividends and continued its share repurchase program.
Financial Highlights
51 data points| Revenue | $1.24B |
| Cost of Revenue | $688.00M |
| Gross Profit | $550.90M |
| R&D Expenses | $24.10M |
| SG&A Expenses | $149.60M |
| Operating Income | $302.60M |
| Interest Expense | $14.00M |
| Net Income | $220.70M |
| EPS (Basic) | $0.90 |
| EPS (Diluted) | $0.88 |
| Shares Outstanding (Basic) | 245.20M |
| Shares Outstanding (Diluted) | 249.80M |
Key Highlights
- 1Net sales grew 6.3% to $1,238.9 million, driven by volume increases in Consumer Domestic and International segments, and beneficial price/mix and acquisitions.
- 2Income from Operations decreased by 3.8% to $302.6 million, impacted by higher SG&A expenses and increased manufacturing costs.
- 3Diluted EPS was $0.88, a slight decrease from $0.92 in the prior year's first quarter.
- 4Cash Flow from Operating Activities declined to $100.2 million from $236.5 million, mainly due to increased working capital, particularly higher inventory levels.
- 5The company paid $61.9 million in cash dividends and continued its share repurchase activities, including an accelerated share repurchase (ASR) program.
- 6Inventories increased to $541.3 million from $495.4 million, reflecting investments to support expected sales growth.
- 7SG&A expenses increased significantly by 23.6% to $149.6 million, largely due to Zicam acquisition costs, lower favorable adjustments to business acquisition liabilities, and higher R&D/information systems costs.