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

Executive summary

• Achieved 4.1% net sales growth in FY 2024, surpassing guidance, with strong organic sales and margin expansion; a $1,000 investment in 1990 now worth $114,000, reflecting long-term value creation.

• Five of seven power brands gained market share, with innovation driving 50% of total growth and online sales exceeding 21% of revenue.

• International expansion accelerated, notably for Hero and TheraBreath brands, now in over 40 countries.

• Cash from operations reached $1.16B, ending with nearly $1B in cash and a leverage ratio of 1.3.

• 10-year average net sales growth of 6.4% and consistent shareholder returns, with 11.7% TSR in 2024.

Financial highlights

• FY 2024 net sales grew 4.1% year-over-year to $6.1B; organic sales up 4.6%; Q4 net sales up 3.5%, organic up 4.2%.

• Adjusted gross margin expanded by 110 bps to 45.2%; adjusted EPS up 8.5% to $3.44; Q4 adjusted EPS $0.77 (+18.5%).

• Free cash flow conversion was 115% in 2024, with $1.16B in cash from operations.

• Year-end 2024 total debt $2.2B, cash on hand $964.1M.

• 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 guidance: 3%-4% organic sales growth, reported sales growth 2.5%-3.5%, 25 bps gross margin expansion, 11%-11.4% marketing spend, 7%-8% adjusted EPS growth, and ~$1.15B in cash from operations.

• Domestic organic sales targeted at 2–3%, international at 7–8%, SPD at 5%.

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

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

• Q1 2025 adjusted EPS expected at $0.90, down 6% year-over-year due to higher marketing spend.