Summary
Church & Dwight Co., Inc. (CHD) reported solid results for the second quarter and first half of 2021, demonstrating resilience and growth across its segments. Net sales increased by 6.4% for both the three and six-month periods, reaching $1.27 billion and $2.51 billion, respectively. This growth was driven by increased product volumes, favorable pricing and product mix in certain segments, and the inclusion of recently acquired businesses. The company demonstrated strong operational efficiency, with income from operations increasing by 19.1% in the second quarter and 6.4% in the first half. While gross margin experienced a slight contraction due to increased manufacturing and transportation costs, this was partially offset by productivity programs and favorable price/volume/mix. Strategic reductions in marketing and SG&A expenses also contributed positively to profitability. Despite inflationary pressures, CHD's focus on cost management and strategic price adjustments, coupled with strong consumer demand for its essential and personal care products, positions it well for continued performance.
Financial Highlights
53 data points| Revenue | $1.27B |
| Cost of Revenue | $718.90M |
| Gross Profit | $552.20M |
| R&D Expenses | $25.40M |
| SG&A Expenses | $136.50M |
| Operating Income | $298.70M |
| Interest Expense | $14.10M |
| Net Income | $218.30M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 245 |
| Shares Outstanding (Diluted) | 250 |
Key Highlights
- 1Net sales grew by 6.4% year-over-year for both the three and six-month periods ending June 30, 2021.
- 2Income from operations increased by 19.1% in Q2 2021 and 6.4% in the first half of 2021 compared to the prior year periods.
- 3Gross margin saw a decline of 340 basis points in Q2 2021 primarily due to higher manufacturing and transportation costs, but productivity programs and price/volume/mix provided some offset.
- 4SG&A expenses decreased significantly by 26.8% in Q2 2021, aided by a favorable adjustment to the Flawless business acquisition liability and lower incentive compensation.
- 5The company is managing supply chain challenges and input cost inflation by increasing short-term manufacturing capacity, working with suppliers, and evaluating price increases.
- 6Cash flow from operating activities decreased to $344.3 million for the first six months of 2021 from $598.6 million in the prior year, mainly due to changes in working capital.
- 7The company repaid a $300 million term loan in June/July 2021 and continues to have significant availability under its revolving credit facility.