07.31.23
Net sales for Church & Dwight Co., Inc. grew 9.7% to $1.45 billion and gross margin expanded by 270 basis points.
Organic sales grew 5.4% driven by positive product mix and pricing of 5.8% while volume was down slightly but exceeded expectations.
“Our Q2 results reflect the strength of our brands and our continued focus on execution,” said Matthew Farrell, CEO. “Consumer demand for our products and improved case fill is resulting in strong revenue growth. Our domestic brands grew consumption in 11 of 17 categories in which we compete. The trade down to value laundry detergent continued as Arm & Hammer liquid detergent experienced strong consumption growth and share gains in Q2. Global online sales continued to grow and as a percentage of total consumer sales were 18% in Q2.”
Recent acquisitions for the brand included Therabreath mouthwash and Hero, maker of Mighty Patch acne products, both of which experienced high consumption growth and grew market share. Quarterly consumption for Therabreath doubled and Hero consumption increased 65% compared to the prior year quarter. Farrell said both businesses are rapidly gaining new distribution at retail. Therabreath is more than doubling and Hero tripling.
Consumer domestic net sales were $1.1 billion, a 12.3% increase versus prior year driven by both household and personal care sales growth. Organic sales increased 6.3% due to price and product mix (+6.5%), slightly offset by volume (-0.2%). Growth was led by Therabreath mouthwash, Arm & Hammer Liquid Detergent and Arm & Hammer unit dose laundry detergent, partially offset by declines in Flawless, Waterpik and First Response. Arm & Hammer liquid detergent, Unit Dose and scent boosters all grew dollars and volume again in Q2.
Consumer international net sales were $241.9 million, an $11.4 million or 4.9% increase versus prior year. Foreign currency exchange rates negatively impacted sales by -1.2%. Organic sales increased 6.1% due to a combination of higher price and product mix +5.5% and higher volume +0.6%. Q2 organic sales were primarily driven by Batiste, Sterimar, Oxiclean and Waterpik.