Church & Dwight Announces Impressive Q4 and Full-Year 2024 Financial Results

Church & Dwight Announces Impressive Q4 and Full-Year 2024 Financial Results

Church & Dwight has delivered a stellar performance in 2024, exceeding its own sales expectations and solidifying its position as a leader in consumer goods. The company reported full-year net sales of $6,107.1 million, reflecting a 4.1% increase and surpassing its original forecast of approximately 3.5% growth. This strong performance was driven by robust consumer demand across various product categories and regions. Organic sales grew by 4.6%, propelled by a 3.3% rise in volume and a 1.3% boost in pricing and product mix.

Looking ahead to 2025 Church & Dwight Announces anticipates earnings per share (EPS) growth to be weighted toward the second half of the year, as significant marketing investments in the first half will support new product innovations and brand expansion.

CEO’s Perspective

Matthew Farrell, Chief Executive Officer, expressed enthusiasm over the company’s strong 2024 performance, stating, “We are thrilled to deliver another year Church & Dwight Announcesof exceptional results. Our 2024 achievements reflect the strength of our brands, the success of our new products, and our unwavering focus on execution. Volume was the primary driver of organic growth, a trend we expect to continue in 2025.

Marketing investments, which increased by 50 basis points as a percentage of sales, fueled consumer demand and market share gains. Global online sales accounted for 21.4% of total consumer sales in 2024. Additionally, strong sales, margin expansion, and efficient working capital management led to over $1.1 billion in operating cash flow. The investments we have made in our brands position us for sustained success.”

Business Segment Performance

Church & Dwight’s three business divisions all reported strong organic growth in 2024:

  • Domestic Division: Organic sales increased by 3.5%, with five of the company’s seven power brands gaining market share.
  • International Division: Achieved an impressive 9.0% organic growth, Church & Dwight Announces driven by strong performance in both country subsidiaries and the Global Markets Group.
  • Specialty Products Division: Posted a 7.1% organic sales increase, demonstrating resilience and demand for its niche offerings.
Financial Performance and Profitability

Church & Dwight saw a Church & Dwight Announces notable expansion in profitability, with Church reported gross margin increasing by 160 basis points and adjusted gross margin improving by 110 basis points. Productivity enhancements, strategic pricing initiatives, higher Church & Dwight Announces sales volume, and high-margin acquisitions offset inflationary pressures, contributing to a 10.1% rise in adjusted pretax income for the year.

While reported EPS for the full year was $2.37—a 22.3% decline from 2023 due to non-cash asset impairment charges in the vitamin business—adjusted EPS reached $3.44, reflecting an 8.5% increase and surpassing the company’s initial outlook of 8% growth.

Fourth Quarter Performance

Church & Dwight wrapped up 2024 on a high note,Church & Dwight Announces with Q4 net sales Church rising 3.5% year-over-year to $1,582.0 million, surpassing the company’s forecasted growth of 1.5% to 2.5%. Organic sales for the quarter increased by 4.2%, driven by a 3.0% rise in volume and a 1.2% improvement in pricing and product mix.

  • Consumer Domestic Division: Reported net sales of $1,225.7 million, a 2.7% increase, fueled by strong demand for ARM & HAMMER™ liquid laundry detergent, HERO™ acne products, and THERABREATH™ mouthwash.
  • Consumer International Division: Net sales surged by 10.2% to $285.1 million, with organic growth of 9.6% driven by HERO, OXICLEAN™, and THERABREATH™.
  • Specialty Products Division: Net sales declined by 6.6% to $71.2 million due to the company’s exit from the Megalac business in Q1 and the food safety business in Q2. However, organic sales within the division grew by 10.3%.

Operating income for Q4 increased by 18.8% to $256.7 million, supported by higher sales and improved margins. The company also benefited from lower interest costs and higher interest income, which contributed to a $17.3 million reduction in other expenses.

Strong Cash Flow and Financial Flexibility

Church & Dwight generated $1.16 billion in operating cash flow for 2024,Church & Dwight Announces an increase of $125.6 million, driven by strong earnings and improved working capital management. Capital expenditures for the year totaled $179.8 million, reflecting a reduction of $43.7 million as major capacity expansion projects were completed.

By year-end, the company maintained a solid financial position with total debt at $2.2 billion and cash on hand of $964.1 million, providing flexibility for future acquisitions and strategic investments.

Dividend Growth

Continuing its long-standing commitment to returning capital to shareholders, Church & Dwight’s Board of Directors approved a 4% increase in its quarterly dividend, raising it from $0.28375 to $0.295 per share. This results in an annual dividend payout of $1.18 per share, bringing the total annual dividend payout to approximately $287 million. The dividend will be paid on March 3, 2025, to shareholders of record as of February 14, 2025. This marks the 29th consecutive year of dividend increases and the 124th consecutive year of quarterly dividend payments.

Farrell commented, “Our dividend increase underscores our commitment Church & Dwight Announcesto rewarding stockholders while maintaining strong cash flow and financial flexibility. We expect to continue generating significant cash in 2025, allowing us to invest in our business and pursue strategic acquisitions.”

Innovation Pipeline for 2025

Church & Dwight is set to introduce several innovative products in 2025 to drive continued growth, including:

  • ARM & HAMMER™ POWER SHEETS™ Laundry Detergent: Expanding nationally after its successful online debut, this eco-friendly, plastic-free detergent sheet is among Church & Dwight Announces the top-selling laundry products on Amazon.
  • ARM & HAMMER™ Deep Clean™ Liquid & Unit Dose Laundry Detergent: A dermatologist-tested, dye-free, paraben-free, and phosphate-free formula for gentle yet effective cleaning.
  • BATISTE™ Light Dry Shampoo: A new lightweight, residue-free dry shampoo offering an invisible finish and subtle scent.
  • HERO™ Mighty Patch Body: An expansion into body care with an extra-large hydrocolloid patch designed for breakouts on larger areas such as the chest, back, and buttocks.
  • VITAFUSION™ Power Plus: A revamped multivitamin line featuring enhanced nutrient profiles and sugar-free options.

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