Church & Dwight Co., Inc. (CHD) Bundle
A Brief History of Church & Dwight Co., Inc.
Church & Dwight Co., Inc., a major player in the consumer goods sector, has a storied history characterized by innovation and strategic growth. As of 2024, the company has continued to evolve its product offerings and expand its market reach.
Financial Performance Overview
As of September 30, 2024, Church & Dwight reported net sales of $1,510.6 million for the third quarter, reflecting a 3.8% increase year-over-year compared to $1,455.9 million in Q3 2023. For the first nine months of 2024, total net sales reached $4,525.1 million, an increase of 4.3% from $4,339.9 million in the same period of 2023.
| Period | Net Sales (in millions) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $1,510.6 | 3.8% |
| Q3 2023 | $1,455.9 | N/A |
| First 9 Months 2024 | $4,525.1 | 4.3% |
| First 9 Months 2023 | $4,339.9 | N/A |
Segment Performance
The company's operations are divided into three reportable segments: Consumer Domestic, Consumer International, and Specialty Products (SPD). The performance of these segments for the third quarter of 2024 is as follows:
| Segment | Net Sales (in millions) | Income (Loss) Before Income Taxes (in millions) |
|---|---|---|
| Consumer Domestic | $1,170.8 | $(107.1) |
| Consumer International | $267.7 | $(4.7) |
| Specialty Products | $72.1 | $7.4 |
In the first nine months of 2024, the income before income taxes for each segment was:
| Segment | Income Before Income Taxes (in millions) |
|---|---|
| Consumer Domestic | $405.3 |
| Consumer International | $61.2 |
| Specialty Products | $29.5 |
Gross Profit and Margins
Church & Dwight's gross profit for the third quarter of 2024 was $683.1 million, with a gross margin of 45.2%, an increase of 80 basis points from 44.4% in Q3 2023. For the first nine months of 2024, gross profit totaled $2,082.2 million, representing a gross margin of 46.0%.
Operating Expenses
Operating expenses for the third quarter of 2024 included marketing expenses of $185.8 million, which increased by 10.7% compared to $167.8 million in Q3 2023. Selling, general, and administrative expenses were $231.7 million, remaining stable at 15.3% of net sales.
Recent Developments
In 2024, Church & Dwight faced challenges in its Vitamins, Minerals, and Supplements (VMS) segment, leading to a non-cash impairment charge of $357.1 million. This was primarily due to increased competition and declining market share. The total impairment charges included $281.3 million related to indefinite-lived trade names.
Cash Flow and Liquidity
As of September 30, 2024, Church & Dwight had $752.1 million in cash and cash equivalents and approximately $1,495.0 million available through its revolving credit facility. The company reported net cash provided by operating activities of $863.9 million for the first nine months of 2024.
| Cash Flow Metrics | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $863.9 |
| Net Cash Used in Investing Activities | $(138.1) |
| Net Cash Used in Financing Activities | $(318.3) |
Overall, Church & Dwight continues to navigate a complex market landscape while maintaining a focus on strategic growth and operational efficiency through 2024.
A Who Owns Church & Dwight Co., Inc. (CHD)
Major Shareholders
As of 2024, Church & Dwight Co., Inc. (CHD) has a diverse ownership structure including institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) |
|---|---|
| The Vanguard Group, Inc. | 8.0 |
| BlackRock, Inc. | 7.5 |
| State Street Corporation | 4.1 |
| FMR LLC (Fidelity) | 3.9 |
| T. Rowe Price Associates, Inc. | 3.5 |
| Other Institutional Investors | 30.0 |
| Individual Shareholders | 39.0 |
Institutional Ownership Trends
Institutional ownership of Church & Dwight Co., Inc. has shown consistent growth over the past few years. As of September 30, 2024, approximately 66% of the company's shares are held by institutional investors.
Board of Directors and Insider Ownership
The board of directors and executive officers also hold a significant number of shares, contributing to insider ownership. As of 2024, insider ownership stands at approximately 2.5% of total shares outstanding.
Stock Performance and Market Capitalization
As of the latest market data in 2024, Church & Dwight Co., Inc. has a market capitalization of approximately $20 billion. The stock price has seen fluctuations, with a year-to-date performance of around 8% increase as of September 30, 2024.
Recent Transactions
In October 2024, Church & Dwight announced the sale of its 50% interest in Armakleen, which is not expected to materially affect the company's financial performance.
Summary of Financial Performance
For the third quarter of 2024, Church & Dwight reported net sales of $1,510.6 million, representing a 3.8% increase compared to the same period in 2023. The company’s gross profit for the same quarter was $683.1 million, with a gross margin of 45.2%.
Dividends and Shareholder Returns
Church & Dwight has a track record of returning value to shareholders through dividends. As of January 31, 2024, the quarterly dividend was increased to $0.28375 per share, marking a 4% increase.
Church & Dwight Co., Inc. (CHD) Mission Statement
Overview of Mission Statement
The mission statement of Church & Dwight Co., Inc. emphasizes its commitment to providing high-quality consumer products that improve the lives of its customers. The company aims to lead in the household and personal care segments while fostering innovation and sustainability.
Financial Performance
As of September 30, 2024, Church & Dwight reported net sales of $1,510.6 million for the third quarter, reflecting a 3.8% increase compared to $1,455.9 million in the same quarter of 2023. For the nine-month period ending September 30, 2024, net sales reached $4,525.1 million, up 4.3% from $4,339.9 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $1,510.6 | $1,455.9 | $4,525.1 | $4,339.9 |
| Gross Profit (in millions) | $683.1 | $646.3 | $2,082.2 | $1,907.2 |
| Gross Margin (%) | 45.2% | 44.4% | 46.0% | 43.9% |
| Net (Loss) Income (in millions) | ($75.1) | $177.5 | $396.1 | $601.9 |
| Net Income per Share - Diluted | ($0.31) | $0.71 | $1.61 | $2.43 |
| Marketing Expenses (in millions) | $185.8 | $167.8 | $490.2 | $422.3 |
Strategic Initiatives
Church & Dwight is focused on enhancing its product offerings and market presence through strategic initiatives. This includes the acquisition of Graphico in June 2024, which is expected to contribute positively to the company's growth trajectory. The company also aims to optimize its product mix and pricing strategies to maintain competitiveness in the market.
Segment Performance
The segments of Church & Dwight include Consumer Domestic, Consumer International, and Specialty Products Division (SPD). For the third quarter of 2024, the net sales by segment were as follows:
| Segment | Net Sales (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|---|
| Consumer Domestic | $1,170.8 | $1,133.1 | |
| Consumer International | $267.7 | $244.4 | |
| Specialty Products Division | $72.1 | $78.4 |
Market Trends and Challenges
Church & Dwight faces challenges in maintaining market share, particularly in the Vitamins, Minerals, and Supplements (VMS) sector, where increased competition has pressured profitability. The company is actively reassessing its strategies in response to these competitive dynamics and market trends.
Corporate Social Responsibility
The mission statement reflects the company's commitment to sustainability and corporate responsibility. Church & Dwight aims to integrate environmentally friendly practices into its operations and product development processes.
Dividend Policy
On January 31, 2024, the Board declared a quarterly dividend increase of 4%, raising it from $0.2725 to $0.28375 per share, which translates to an annual dividend of approximately $276.0 million based on stockholder records as of February 15, 2024.
Liquidity and Capital Resources
As of September 30, 2024, Church & Dwight reported cash and cash equivalents of $752.1 million, with additional borrowing capacity of approximately $1,495.0 million available through its Revolving Credit Facility and commercial paper program.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $752.1 |
| Available Credit Facility | $1,495.0 |
| Annual Dividend Payout | $276.0 |
How Church & Dwight Co., Inc. (CHD) Works
Company Overview
Church & Dwight Co., Inc. (CHD) operates through three primary segments: Consumer Domestic, Consumer International, and Specialty Products (SPD). The company is renowned for its household and personal care products, as well as specialty chemicals.
Financial Performance
As of September 30, 2024, Church & Dwight reported the following financial results:
| Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $1,510.6M | $1,455.9M | 3.8% | $4,525.1M | $4,339.9M | 4.3% |
| Gross Profit | $683.1M | $646.3M | 5.7% | $2,082.2M | $1,907.2M | 9.2% |
| Operating Income | $(91.5)M | $255.8M | (135.8%) | $550.4M | $841.3M | (34.6%) |
| Net Income | $(75.1)M | $177.5M | (143.7%) | $396.1M | $601.9M | (34.1%) |
| Net Income per Share (Diluted) | $(0.31) | $0.71 | (143.7%) | $1.61 | $2.43 | (33.7%) |
Segment Performance
Net sales and income before income taxes for each segment are detailed below:
| Segment | Net Sales Q3 2024 | Net Sales Q3 2023 | Income (Loss) Before Income Taxes Q3 2024 | Income (Loss) Before Income Taxes Q3 2023 |
|---|---|---|---|---|
| Consumer Domestic | $1,170.8M | $1,133.1M | $(107.1)M | $203.4M |
| Consumer International | $267.7M | $244.4M | $(4.7)M | $22.7M |
| Specialty Products (SPD) | $72.1M | $78.4M | $7.4M | $6.2M |
Key Drivers of Performance
The increase in net sales for Q3 2024 was supported by:
- Consumer Domestic: Product volume growth of 2.6% and favorable pricing/product mix of 0.7%.
- Consumer International: Product volume growth of 5.3% and favorable pricing/product mix of 2.8%.
- Specialty Products: A decrease in net sales attributed to the exit of certain product lines.
Operating Expenses
Operating expenses for Q3 2024 reflected a significant increase in marketing expenses, which rose by 10.7% to $185.8M compared to $167.8M in Q3 2023.
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Marketing Expenses | $185.8M | $167.8M | 10.7% |
| Selling, General & Administrative Expenses | $231.7M | $222.7M | 4.0% |
Cash Flow and Liquidity
As of September 30, 2024, Church & Dwight held $752.1M in cash and cash equivalents, and had approximately $1,495.0M available through its revolving credit facility and commercial paper program.
Market Challenges
The company faced challenges in the Vitamins, Minerals, and Supplements (VMS) segment, leading to impairment charges of $357.1M for Q3 2024 due to market competition and declining profitability.
| Impairment Charges | VMS Trade Name | Customer Relationship Intangible Asset | PP&E | Total |
|---|---|---|---|---|
| Amount | $281.3M | $15.8M | $60.0M | $357.1M |
Dividend Information
The Board declared a quarterly dividend of $0.28375 per share, an increase of 4% from the previous dividend of $0.2725 per share, with an annualized dividend payout projected at approximately $276.0M.
How Church & Dwight Co., Inc. (CHD) Makes Money
Overview of Revenue Streams
Church & Dwight Co., Inc. operates through three primary segments: Consumer Domestic, Consumer International, and Specialty Products (SPD). Each segment contributes to the company’s overall revenue through various product lines.
Consumer Domestic Segment
The Consumer Domestic segment focuses on household and personal care products. For the third quarter of 2024, net sales were $1,170.8 million, a 3.3% increase from the previous year. For the nine months ending September 30, 2024, net sales reached $3,506.6 million, reflecting a 3.8% increase.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $1,170.8 million | $1,133.1 million | $3,506.6 million | $3,378.2 million |
| Product Volumes Sold | 2.6% | - | 3.1% | - |
| Pricing/Product Mix | 0.7% | - | 0.7% | - |
Consumer International Segment
The Consumer International segment primarily deals with personal care products. In Q3 2024, net sales were $267.7 million, up 9.5% compared to Q3 2023. For the nine months ending September 30, 2024, net sales totaled $786.4 million, marking a 9.7% increase.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $267.7 million | $244.4 million | $786.4 million | $716.9 million |
| Product Volumes Sold | 5.3% | - | 5.1% | - |
| Pricing/Product Mix | 2.8% | - | 3.6% | - |
Specialty Products (SPD) Segment
The SPD segment offers specialty chemical products. In Q3 2024, SPD net sales were $72.1 million, a decline of 8.0% from Q3 2023. For the nine-month period, net sales were $232.1 million, down 5.2% compared to the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $72.1 million | $78.4 million | $232.1 million | $244.8 million |
| Product Volumes Sold | 3.6% | - | 3.5% | - |
| Pricing/Product Mix | 3.9% | - | 2.6% | - |
Gross Profit and Margins
For the third quarter of 2024, gross profit was $683.1 million with a gross margin of 45.2%, reflecting an 80 basis point increase from Q3 2023. For the nine months, gross profit was $2,082.2 million, with a gross margin of 46.0%.
Operating Expenses
Marketing expenses for Q3 2024 were $185.8 million, a 10.7% increase from the prior year, representing 12.3% of net sales. For the nine months, marketing expenses totaled $490.2 million, which is 10.8% of net sales.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Marketing Expenses | $185.8 million | $167.8 million | $490.2 million | $422.3 million |
| SG&A Expenses | $231.7 million | $222.7 million | $684.5 million | $643.6 million |
Income Before Income Taxes
For Q3 2024, the company reported a loss before income taxes of $(101.4) million, significantly impacted by impairment charges of $357.1 million. For the nine months ending September 30, 2024, income before income taxes was $503.2 million.
Net Income and Earnings Per Share
Net income per diluted share for Q3 2024 was $(0.31), a decrease of 143.7% from the previous year. For the nine-month period, net income per diluted share was $1.61.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $(101.4) million | $234.0 million | $503.2 million | $772.2 million |
| Net Income per Share | $(0.31) | $0.71 | $1.61 | $2.43 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $863.9 million, while cash used in investing activities was $(138.1) million.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $863.9 million | $795.1 million |
| Net Cash Used in Investing Activities | $(138.1) million | $(128.4) million |
| Net Cash Used in Financing Activities | $(318.3) million | $(363.0) million |
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Article updated on 8 Nov 2024
Resources:
- Church & Dwight Co., Inc. (CHD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Church & Dwight Co., Inc. (CHD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Church & Dwight Co., Inc. (CHD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.