Church & Dwight (CHD) Q4 2024 & Investor Day 2025 earnings summary

Executive summary

• Achieved 4.1% net sales growth in FY 2024, surpassing guidance, with strong organic sales and margin expansion; $1,000 invested in 1990 now worth $114,000.

• Five of seven power brands gained market share, with innovation driving 50% of incremental growth and e-commerce exceeding 21% of total sales.

• International expansion accelerated, notably for Hero and TheraBreath brands, and through acquisition of a key Japanese distributor.

• Generated $1.16B in cash from operations, ending with $960M cash and a leverage ratio of 1.3.

• Leadership transition planned, with a focus on continuity and culture.

Financial highlights

• FY 2024 net sales grew 4.1% year-over-year; organic sales up 4.6%; Q4 net sales up 3.5% and organic sales up 4.2%.

• Adjusted gross margin expanded by 110 bps to 45.2%; adjusted EPS up 8.5% to $3.44.

• Q4 adjusted EPS rose 18.5% to $0.77; reported EPS $0.76 (+22.6%).

• Cash from operations reached $1.16B in 2024; free cash flow conversion at 115%.

• Income from operations in Q4 rose 18.8% to $256.7M; adjusted income from operations up 16.3% of net sales.

Outlook and guidance

• FY 2025 organic sales growth expected at 3%-4%, reported sales growth 2.5%-3.5%, with gross margin expansion of 25 bps.

• Adjusted EPS growth projected at 7%-8%; cash from operations projected at ~$1.15B.

• Marketing spend to remain above 11% of sales, focused on driving share gains.

• Dividend to increase 4% in 2025, marking 124 consecutive years of dividends.

• No price increases planned unless inflation becomes extreme; productivity to offset cost pressures.