Sales and Revenue - In 2024, household products constituted approximately 55% of the Consumer Domestic sales and about 42% of the consolidated net sales[22]. - Personal care products represented approximately 45% of the Consumer Domestic sales and around 35% of the consolidated net sales in 2024[25]. - Total Consumer International net sales accounted for approximately 18% of the consolidated net sales in 2024, with no product line exceeding 20% of total international net sales[29]. - The Specialty Products Division accounted for approximately 5% of the consolidated net sales in 2024[32]. - Net sales of the MEGALAC business were $7.6 million in 2024, down from $38.1 million in 2023, following the exit from this segment[34]. - The Passport food safety business generated net sales of $6.4 million in 2024, compared to $13.0 million in 2023, prior to its sale in the second quarter of 2024[35]. - Walmart Inc. accounted for 23% of consolidated net sales in 2024, consistent with 2023 and down from 24% in 2022[55]. Acquisitions and Investments - The company acquired Graphico, Inc. for $19.9 million, net of cash acquired, and an additional $2.0 million for remaining minority shares in July 2024[20]. - The company has increased qualified dual sources of materials to approximately 60% of total spend on direct materials to enhance supply chain resilience[50]. - The cost of raw materials increased modestly in 2024 compared to 2023, which could materially impact financial results if costs cannot be passed to customers[51]. Market Competition and Distribution - The company competes with major brands such as Procter & Gamble, Colgate-Palmolive, and Unilever, which have greater financial resources[43]. - The company’s products are marketed through a broad distribution platform, including supermarkets, mass merchandisers, and e-commerce channels[45]. Regulatory Compliance - The company is subject to various regulations from agencies such as the FDA, EPA, and FTC, which govern product development, manufacturing, and marketing[56]. - The FDA's cGMP regulations apply to all facilities manufacturing OTC pharmaceutical products, with periodic audits to ensure compliance[67]. - The company markets over-the-counter pharmaceutical products that must conform to FDA monograph requirements, which include specific quality and labeling standards[65]. - Dietary supplements must comply with FDA regulations, including reporting serious adverse events associated with their use[74]. - New legislation may impose substantial regulatory requirements on dietary supplements, potentially affecting product formulation and market availability[75]. - The company’s products are subject to mandatory recalls under the Food Safety Modernization Act if certain conditions are met[69]. Employee and Community Engagement - As of December 31, 2024, the company had approximately 5,750 global employees, an increase of about 200 compared to December 31, 2023[86]. - The overall turnover rate for fiscal 2024 was approximately 15%, with revenue per employee at approximately $1.06 million[86]. - The company provided approximately $1.3 million in support to 237 community organizations through its Employee Giving Fund in 2024[95]. - The Church and Dwight Philanthropic Foundation awarded grants totaling approximately $1.3 million to eight organizations in 2024[96]. - Approximately 85% of the company's workforce is located in the Americas, 10% in Europe, Middle East, and Africa, and 5% in the Asia-Pacific region[86]. - The company launched several Employee Resource Groups (ERGs) in 2023 to promote diversity and inclusion[89]. - Employee safety and wellness remain top priorities, with policies in place to ensure compliance with OSHA standards[85]. - The company emphasizes a culture of diversity and inclusion to enhance long-term performance and innovation[87]. - The company invests in professional development and growth to improve employee performance and retention[92]. - The company offers competitive pay and a range of benefits, including health insurance and retirement plans, to attract and retain talent[93]. Environmental Sustainability - The company aims to minimize its environmental impact by focusing on renewable energy usage and reducing greenhouse gas emissions[79]. - The partnership with Tata Chemicals for soda ash supply enables the company to achieve economies of scale in sodium bicarbonate production[49]. - The company has adequate trona reserves to support sodium bicarbonate production for the foreseeable future[48]. - The company publishes an annual Sustainability Report detailing its ESG performance metrics and commitments, with the 2023 report available online[76].

Group 1 - The analyst assigned a hold rating to Church & Dwight Co. (NYSE: CHD) in November, citing that the stock was too expensive compared to its peers [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing a blend of value investing principles [1] - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term compounding of earnings and shareholder returns [1]

Company Overview - Church & Dwight Co., Inc. is hosting its 2025 Analyst Day, marking the 35th anniversary of its listing on the New York Stock Exchange [4]. Management Team - The event features a comprehensive management team, including Matt Farrell (Chairman, President, and CEO), Rick Dierker (CFO), and other key executives [2][3]. Event Details - The Analyst Day is attended by a significant number of participants, indicating strong interest in the company's future prospects [2].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported 3.5% sales growth, exceeding the outlook of 1.5% to 2.5% [24] - Full-year net sales growth was 4%, with organic sales growth at 4.5%, domestic growth at 3.5%, international growth at 9%, and SPD growth at 7% [26] - Gross margin improved by 110 basis points, returning to 2019 levels, and EPS grew by almost 19% [25][26] - The company generated $1.16 billion in cash, with a free cash flow conversion rate of around 115% [27] Business Line Data and Key Metrics Changes - The company has seven power brands that account for 70% of revenues and profits, with five of these brands growing in 2024 [35] - The laundry business is growing at or above category averages, with market share increasing from 5% to 14.5% over 18 years [37] - The HERO brand saw a 40% growth in consumption, while THERABREATH also experienced over 40% growth [41][42] - VITAFUSION vitamins faced a decline but is expected to stabilize with new product launches [46][47] Market Data and Key Metrics Changes - The international business grew by 19%, with sub-markets growing almost 5% [97] - The company operates in over 100 countries, with significant growth opportunities in international markets [96][101] - The brand portfolio is performing well globally, with strong growth in markets like Japan and Canada [109] Company Strategy and Development Direction - The company aims for 8% organic growth in international markets, leveraging its power brands and expanding its portfolio [94][101] - Innovation is a key focus, with over 50% of the pipeline coming from new sources, and the company is transforming its approach to R&D [88][92] - The company is strict about acquisitions, targeting number one or two brands with gross margins at or above company levels [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong performance across categories and a balanced portfolio [28][34] - The company is optimistic about household penetration opportunities in the U.S. and plans to continue investing in marketing and innovation [28][42] - The management highlighted the importance of e-commerce growth, which has increased from 2% to 21% [30] Other Important Information - The company has a long history of growth through acquisitions, with a focus on integrating and growing acquired brands [22][33] - The company is expanding its international presence, with rapid rollout plans for brands like HERO [105] - A new U.S. President and CFO are being hired to strengthen domestic operations [33] Q&A Session Summary Question: What is the outlook for the international business? - The international business is expected to continue growing at a fast pace, with a focus on leveraging power brands and expanding into new markets [94][101] Question: How is the company addressing the decline in VITAFUSION? - The company is launching a renovated portfolio and new products to revitalize the VITAFUSION brand, focusing on innovation and marketing support [46][47] Question: What are the key drivers of growth for the HERO brand? - HERO's growth is driven by strong consumption rates and increased distribution, with plans to invest further in marketing to enhance household penetration [41][42]

Church & Dwight Co., Inc. (CHD) reported solid fourth-quarter 2024 results, as the top and bottom lines increased year over year, and sales beat the Zacks Consensus Estimate.The company delivered another year of strong performance, underscoring the strength of its brands, the success of new product launches and a continued focus on execution. Organic growth was primarily driven by volume, a trend expected to persist into 2025. Global online sales formed 21.4% of total consumer sales in 2024. Strategic brand ...

Core Insights - Church & Dwight (CHD) reported $1.58 billion in revenue for Q4 2024, a year-over-year increase of 3.5% and a surprise of +1.22% over the Zacks Consensus Estimate of $1.56 billion [1] - The company's EPS for the same period was $0.77, compared to $0.65 a year ago, aligning with the consensus estimate [1] Revenue Performance - Total Consumer Net Sales reached $1.51 billion, exceeding the nine-analyst average estimate of $1.49 billion, reflecting a year-over-year change of +4.1% [4] - Consumer Domestic sales were $1.23 billion, slightly above the $1.22 billion estimate, marking a +2.7% change year-over-year [4] - Consumer International sales amounted to $285.10 million, surpassing the $273.57 million estimate, with a year-over-year increase of +10.2% [4] - Specialty Products Division sales were $71.20 million, below the $71.60 million estimate, showing a year-over-year decline of -6.6% [4] Segment Analysis - Consumer Domestic - Household Products generated $654.80 million, exceeding the $639.46 million estimate, with a year-over-year increase of +4.4% [4] - Consumer Domestic - Personal Care Products reported $570.90 million, slightly below the $577.65 million estimate, reflecting a +0.9% change year-over-year [4] Stock Performance - Church & Dwight shares returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +2.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Church & Dwight (CHD) reported quarterly earnings of $0.77 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.65 per share a year ago [1]. Financial Performance - The company posted revenues of $1.58 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.22%, compared to $1.53 billion in the same quarter last year [2]. - Over the last four quarters, Church & Dwight has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2]. Stock Performance - Church & Dwight shares have increased approximately 2.3% since the beginning of the year, while the S&P 500 has gained 3.2% [3]. - The current status of estimate revisions for Church & Dwight is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $1.55 billion, and for the current fiscal year, it is $3.73 on revenues of $6.31 billion [7]. - The outlook for the Consumer Products - Staples industry, to which Church & Dwight belongs, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8].

Financial Performance - Q4 2024 net sales increased by 3.5% to $1,582.0 million, exceeding the company's outlook of 1.5% to 2.5% growth[7] - Full year 2024 net sales grew by 4.1% to $6,107.1 million, surpassing the expected growth of approximately 3.5%[2] - Organic sales for Q4 2024 rose by 4.2%, driven by a 3.0% increase in volume and a 1.2% positive price and product mix[7] - Full year adjusted EPS for 2024 was $3.44, an increase of 8.5% compared to 2023, exceeding the company's outlook of 8%[6] - Basic net income per share for Q4 2024 was $0.77, compared to $0.63 in Q4 2023, representing a 22.2% increase[35] - Total consumer net sales for the twelve months ended December 31, 2024, reached $5,803.8 million, up 4.6% from $5,546.9 million in 2023[39] - Diluted earnings per share (EPS) for the quarter ended December 31, 2024, was $0.77, an 18.5% increase from $0.65 in the same quarter of 2023[52] Cash Flow and Liquidity - Cash from operations for 2024 was $1.156 billion, an increase of $125.6 million from the previous year[14] - Cash and equivalents increased significantly to $964.1 million in 2024 from $344.5 million in 2023, indicating improved liquidity[36] - Net cash from operating activities for the twelve months ended December 31, 2024, was $1,156.2 million, compared to $1,030.6 million in 2023, an increase of 12.2%[37] Dividends and Shareholder Returns - The company announced a 4% increase in the quarterly dividend, raising it from $0.28375 to $0.295 per share, resulting in an annual payout of approximately $287 million[15] - Dividends per share increased to $0.28 in Q4 2024 from $0.27 in Q4 2023, reflecting a growth of 3.7%[35] Future Outlook - In 2025, the company expects net sales growth of 3% to 4% and adjusted EPS growth of 7% to 8%[23][25] - The company forecasts reported sales growth of 1.0% for the quarter ending March 31, 2025, and 3.0% for the year ending December 31, 2025[53] - For the year ending December 31, 2025, reported diluted earnings per share is forecasted to be between $3.63 and $3.68, representing a 53% to 55% increase from $2.37 in 2024[54] - Adjusted diluted earnings per share (non-GAAP) for the year ending December 31, 2025 is projected to be between $3.72 and $3.68, reflecting a 7% to 8% increase from $3.44 in 2024[54] Operational Efficiency - The effective tax rate for Q4 2024 increased to 25.2%, compared to 21.3% in Q4 2023, primarily due to one-time non-recurring tax items[13] - Adjusted SG&A expenses for the quarter ended December 31, 2024, were $240.2 million, representing 15.2% of net sales, a decrease from 15.6% in the previous year[51] - The company is focusing on improving earnings through cost management and operational efficiencies[54] Product Development and Market Strategy - The company plans to launch several new products in 2025, including ARM & HAMMER POWER SHEETS™ and HERO™ Mighty Patch Body, aimed at driving significant sales growth[16][20] - Future growth strategies include potential market expansion and new product development initiatives[54] Asset and Liability Management - Total assets rose to $8,883.1 million in 2024, up from $8,569.2 million in 2023, marking a growth of 3.7%[36] - The company reported a total of $1,315.9 million in current liabilities for 2024, down from $1,422.0 million in 2023, a decrease of 7.5%[36] - Capital expenditures decreased to $179.8 million in 2024 from $223.5 million in 2023, a reduction of 19.6%[37] - The company expects capital expenditures of approximately $130 million in 2025, returning to historical levels[26] Sales Performance by Division - The specialty products division reported a decline in sales of 6.6% for the three months ended December 31, 2024, compared to the same period in 2023[39] - Consumer international sales for the twelve months ended December 31, 2024, increased by 9.8% to $1,071.5 million from $975.7 million in 2023[39] - Organic sales growth for the three months ended December 31, 2024, was 4.2%, with consumer international sales growing by 9.6%[49]

Core Insights - Church & Dwight Co., Inc. (CHD) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimated at $1.56 billion, reflecting a 2.4% increase year-over-year [1] - The earnings consensus for the fourth quarter remains at 77 cents per share, indicating an 18.5% growth compared to the previous year [2] Group 1: Company Performance - Church & Dwight's strong brand equity, driven by innovation and strategic acquisitions, supports its market position and growth [3] - Online sales represent a significant growth area, accounting for 20.7% of global sales as of the third quarter of 2024 [3] - The company's focus on expanding direct-to-consumer platforms and optimizing its omnichannel presence has yielded positive results amid changing consumer spending patterns [4] Group 2: Financial Management - Church & Dwight's cost management and strategic pricing are key in mitigating inflationary pressures and rising manufacturing costs [5] - For the full year 2024, the company anticipates an adjusted gross margin expansion of approximately 110 basis points, with a projected 30 basis points expansion for the fourth quarter [5] Group 3: Earnings Predictions - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [6]

As the earnings season unfolds, the prospects of the Consumer Staples sector look mixed. While companies with a strong brand position, diversified portfolios and effective cost management are poised to shine, others may find it difficult to maintain momentum amid volatile consumption trends and cost concerns. Known for its defensive characteristics and essential product offerings, the Consumer Staples sector comprises a wide array of companies, including household goods, food and beverage manufacturers, and ...