Earnings release
Page 1
ARM & ● HAMMER THE STANDARD OF PURITY CHURCH & DWIGHT CO . , INC . News Release Contact : Rick Dierker Chief Financial Officer 609-806-1200 CHURCH & DWIGHT REPORTS Q2 RESULTS Q2 NET SALES AND ADJUSTED EPS EXCEED OUTLOOK OUTLOOK ~ 4 % FULL YEAR ORGANIC REVENUE GROWTH FULL YEAR ADJUSTED EPS EXPECTATION NOW LOWER END OF 6-8 % RANGE ANNOUNCES ADDITIONAL PRICING ACTIONS 2021 Second Quarter Results .Net Sales + 6.4 % : Domestic + 3.1 % , Int'l + 21.0 % , SPD + 11.8 % Organic sales + 4.5 % : Domestic + 2.8 % , Int'l + 10.4 % , SPD + 11.8 % • EPS + 16.0 % ; Adjusted -1.3 % 2021 Full Year Outlook • Net Sales growth now ~ 5 % ; Organic Sales growth now ~ 4 % ● Adjusted EPS now at lower end of 6-8 % range¹ • Cash from operations approx . $ 950 million ( previous $ 1 billion ) EWING , NJ , July 30 , 2021 Church & Dwight Co. , Inc. ( NYSE : CHD ) today announced second quarter net sales grew 6.4 % to $ 1,271.1 million . The Company continues to experience strong consumer demand for many of its products . Organic sales grew 4.5 % driven by volume , exceeding the Company's outlook of 4 % growth.² Second quarter 2021 EPS increased 16.0 % to $ 0.87 per share . Adjusted EPS , which excludes a positive acquisition related earn - out adjustment , decreased 1.3 % to $ 0.76 , exceeding the Company's adjusted outlook of $ 0.69.² Matthew Farrell , Chief Executive Officer , commented , " Our brands once again drove strong consumption in Q2 . Organic sales growth of 4.5 % is on top of 8.4 % organic growth in Q2 2020. In the U.S. , we grew consumption in 13 of the 16 categories in which we compete . Our brands experienced double - digit consumption growth in 9 of those 16 categories , including gummy vitamins , cat litter , dry shampoo , and water flossers . Our personal care categories are benefitting from increased consumer mobility . Consumption is far outpacing shipments as supply chain disruptions continue and fill levels are below normal . Our International business , despite many countries still experiencing lockdowns , delivered broad - based organic sales growth of 10.4 % . Global online sales grew 7.2 % ( on top of 77 % growth in Q2 2020 ) and as a percentage of total sales has expanded to 14.2 % in Q2 . " " I'd like to recognize all Church & Dwight employees around the world for their continued dedication to helping us successfully navigate the difficult environment , especially our Supply Chain and R & D teams as the Company continues to face complexities of raw material and labor shortages at our suppliers and third party manufacturers . " " In the second quarter , we experienced shortages of many key raw materials . Labor shortages at suppliers and third party manufacturers and transportation challenges have resulted in supply issues . Shortages of available trucks and drivers for raw and packaging materials such as chemicals have also impacted supply . Due to a lower case fill rate , we pulled back on Q2 marketing for affected products , especially household products . We expect the supply issues to begin to abate in Q4 as we continue our efforts to improve . Significant inflation of material and component costs is impacting our gross margin outlook . We expect higher input costs and transportation costs to remain elevated for the rest of the year . " " Our previously announced pricing actions took effect on June 28 , which included a high single digit increase in laundry . In July , we announced additional price increases in cat litter , laundry performance additives , baking soda ,