Church & Dwight (CHD) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales grew 3.8% to $1,510.6M, with organic sales up 4.3% driven by 3.1% volume and 1.2% price/mix; strong consumer demand and new product launches contributed to growth.

• Adjusted EPS was $0.79, up 6.8% year-over-year and above outlook; reported loss per share was -$0.31 due to a $357.1M non-cash impairment in the vitamin business.

• Gross margin improved by 80 bps to 45.2% in Q3, aided by productivity, pricing, and a favorable tariff ruling.

• All business divisions—domestic, international, and specialty—delivered strong growth, with online sales accounting for 21% of global sales.

• The Graphico acquisition in Japan and the exit of certain product lines, including MEGALAC and Passport, marked key portfolio changes.

Financial highlights

• Q3 2024 gross profit was $683.1M, up 5.7% year-over-year; nine-month gross profit was $2,082.2M, up 9.2%.

• Adjusted income from operations was $267.2M, up 1.6% year-over-year; reported operating loss of $91.5M due to impairment.

• Cash from operations for the first nine months reached $863.9M, with full-year guidance raised to ~$1.1B.

• CapEx for the first nine months was $125M; full-year CapEx expected at $180M.

• Cash and equivalents stood at $752.1M as of September 30, 2024.

Outlook and guidance

• Full-year 2024 net sales expected to grow 3.5%, organic sales 4.0%.

• Adjusted EPS growth expected at approximately 8%; gross margin expansion forecasted at 110 bps for the year.

• Marketing spend as a percent of sales to be above 11%.

• Full-year cash from operations forecasted at ~$1.1B; capital expenditures for 2024 expected at ~$180M.

• Cautious Q4 outlook due to potential category growth deceleration and external events impacting consumption.