02.02.24
Church & Dwight Co., Inc. said full year net sales increased 9.2% to $6.8 billion, ahead of the company’s outlook of 9%.
Organic sales increased 5.3% and organic sales of consumer products increased 6.2%.
Q4 net sales were $1.6 billion, a $92.0 million or 6.4% increase compared to net sales in Q4 2022. This exceeded the company’s outlook of 5% growth.
“Our full year 2023 results illustrate the strength of our brands, innovative new products, and our focus on execution,” said CEO Matthew Farrell. “We are exiting the year with strong momentum after posting two consecutive quarters of year-over-year volume growth. We expect volume to continue to drive growth into 2024. Our domestic brands grew consumption in 10 of 17 categories in 2023. We grew share on brands representing 60% of our sales. Global online sales accounted for 20% of total consumer sales in 2023, an increase of 26% compared to 2022.”
The company’s recent acquisitions -- TheraBreath mouthwash and Hero, the maker of Mighty Patch acne care products -- both experienced high consumption growth and grew market share throughout 2023. We expect these brands to deliver strong growth in 2024.
Organic revenue growth for the domestic division grew 5.7% in 2023 driven by growth across much of the portfolio. Organic revenue growth for the International Division grew 8.5% in 2023, driven by broad-based growth in its country subsidiaries and Global Markets Group. The International Division will continue to be a “growth engine” for the company in 2024, Farrell said.
Strong sales and margin expansion along with efficient working capital management were “key drivers” of its strong cash flow generation in 2023, achieving over $1 billion in cash from operations for the first time, Farrell said.
Fourth Quarter Review
Consumer domestic net sales were $1.1 billion, a $72.2 million or 6.4% increase driven by both household and personal care sales growth. Organic sales increased 5.7% due to price and product mix (+4.2%) and volume (+1.5%). This is the second consecutive quarter of volume growth, despite the impact of ceasing sub-optimal laundry promotions, the company said.
Growth was led by Hero acne treatments, TheraBreath mouthwash, Arm & Hammer baking soda and Arm & Hammer unit dose laundry detergent.
Consumer international net sales were $258.8 million, a $27.5 million or 11.9% increase. Foreign currency exchange rates impacted sales favorably by (+2.7%). Organic sales increased 9.0% due to a combination of higher price and product mix (+5.1%) and higher volume (+3.9%). This is the fourth consecutive quarter of volume growth. Q4 organic sales were primarily driven by Sterimar, Therabreath, Arm & Hammer baking soda and Hero.