Church & Dwight(CHD) - 2024 Q4 - Annual Results

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]