Church & Dwight (CHD) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales rose 3.9% to $1,511.2M, with organic sales up 4.7% and all divisions delivering growth; volume contributed 3.5% of organic growth.

• Reported EPS increased 11.2% to $0.99, adjusted EPS was $0.93 (up 1.1% YoY), both exceeding outlook, driven by higher sales and gross margin expansion.

• Gross margin expanded 320 bps to 47.1% (reported), adjusted up 150 bps, aided by a one-time favorable tariff ruling.

• Online sales reached 21.2% of global sales, and most power brands gained market share.

• Acquired Graphico in Japan for $19.9M to expand APAC presence; exited MEGALAC and Passport food safety businesses.

Financial highlights

• Q2 net sales: $1,511.2M (+3.9% YoY); six months: $3,014.5M (+4.5% YoY); organic sales +4.7%.

• Q2 net income: $243.5M (+10.1% YoY); diluted EPS: $0.99 (+11.2% YoY); adjusted EPS: $0.93 (+1.1% YoY).

• Gross margin: 47.1% (+320 bps YoY); adjusted gross margin: 45.4% (+150 bps YoY).

• Cash from operations for H1: $499.9M; full-year guidance: $1.08B.

• CapEx for H1: $76.6M; full-year CapEx expected at $180M.

Outlook and guidance

• Full-year net sales growth expected at 3.5%; organic sales growth at 4.0%, the low end of prior range.

• Adjusted EPS growth expected at the low end of 8–9% range; reported EPS growth forecast at 12–13%.

• Gross margin expansion outlook raised to 100–110 bps for the year.

• Marketing as a percentage of net sales expected to be about 11% for the year.

• Capital expenditures for 2024 projected at $180M, returning to ~2% of sales in 2025.