Church & Dwight Co. net sales rose by 5.1% to reach $1,503.3 million in 2024 Q, with gross margin increasing by 220 basis points and reported earnings per share (EPS) growing by 13.4%. The company maintains strong consumer demand across its product range, with organic sales increasing by 5.2%, fueled by a 3.7% rise in volume and a positive product mix and pricing of 1.5%.
Reported EPS for the first quarter of 2024 stood at $0.93, marking a 13.4% increase compared to the same period in 2023. Adjusted EPS for the first quarter reached $0.96, up by 12.9%. This exceeded the company’s projected figure of $0.85 for Adjusted EPS, driven by higher-than-expected sales growth and gross margin expansion, as well as a lower tax rate.
Consumer Domestic net sales saw a $48.3 million or 4.3% increase, reaching $1,165.2 million, primarily driven by growth in household and personal care sales. Organic sales rose by 4.3%, attributed to a 3.3% increase in volume and a 1.0% improvement in price and product mix. Key contributors to growth included THERABREATH™ mouthwash, HERO™ acne products, ARM & HAMMER™ Cat Litter, ARM & HAMMER™ Baking Soda, XTRA™ Liquid Detergent, and BATISTE™ dry shampoo, though this was somewhat offset by declines in the vitamin business and WATERPIK™ sales.
Consumer International net sales increased by $24.4 million or 10.6%, totaling $255.0 million. Organic sales grew by 8.8%, driven by a 5.4% increase in volume and a 3.4% improvement in price and product mix. Growth was primarily fueled by STERIMAR™, HERO, and THERABREATH™ products.
Specialty Products net sales experienced a $0.8 million or 1.0% increase, reaching $83.1 million, which includes the impact of winding down the Megalac business. Organic sales grew by 7.2%, attributed to a 4.2% increase in price and product mix and a 3.0% rise in volume.
Matthew Farrell, Chief Executive Officer, said, “The Company is performing extremely well with all three divisions delivering strong growth. I want to thank our global employees for their great efforts each and every day. Our outstanding Q1 results reflect the strength of our brands, the early success of our new products, and our perennial focus on execution. Volume was the primary driver of organic growth, and we expect volume growth to continue for the rest of the year. Marketing as a percent of sales increased 150 bps driving strong consumption and share gains. Global online sales grew to 20.5% of total consumer sales in Q1, a dollar increase of 14.9% compared to Q1 2023. Finally, the combination of strong sales, margin expansion, and efficient working capital management resulted in strong cash flow generation in the first quarter, leading to over $1 billion of cash from operations expected in the full year outlook.“
