Church & Dwight Co. Announces ‘Stronger Than Expected’ Sales Growth in Q3 2023

Church & Dwight Co., Inc. reported “stronger than expected” sales growth and gross margin expansion in the third quarter 2023.

 

Net sales grew 10.5% to $1.4 billion and gross margin expanded by 270 basis points. The company continues to experience strong consumer demand across its portfolio. Organic sales grew 4.8% driven by volume of 2.7% and positive product mix and pricing of 2.1%.

 

“Our Q3 results reflect the strength of our brands and our continued focus on execution,” said CEO Matthew Farrell. Over half of our organic growth in the quarter was driven by volume. Our domestic brands grew consumption in 11 of 17 categories. We grew share on brands representing 64% of sales. Global online sales continued to grow and as a percentage of total consumer sales were 17% in Q3.”

 

The brand’s recent acquisitions, Therabreath mouthwash and Hero, maker of Mighty Patch acne care products, both experienced high consumption growth and grew market share. Both businesses continue to achieve significant distribution gains at retail, said Farrell.

 

Organic revenue growth for the International Division was strong, driven by growth in most of its country subsidiaries and Global Markets Group. The International Division is proving to be a growth engine for the company.

 

Strong sales and margin expansion along with efficient working capital management were all key drivers of its strong cash flow generation in Q3.

Consumer Domestic net sales were $1.1 billion, a $122.7 million or 12.1% increase versus prior year driven by both household and personal care sales growth. Organic sales increased 5.5% due to volume (+3.6%) and price and product mix (+1.9%). Growth was led by Therabreath mouthwash, XTRA Liquid Detergent, Waterpik and Batiste dry shampoo, partially offset by declines in the vitamin business, and First Response.

 

Consumer International net sales were $244.4 million, a $24.7 million or 11.2% increase versus prior year. Foreign currency exchange rates impacted sales favorably by (+2.8%). Organic sales increased 7.3% due to a combination of higher price and product mix (+5.0%) and higher volume (+2.3%). Q3 organic sales were primarily driven by Sterimar, Oxiclean, Therabreath and the vitamin business.

 

Specialty products net sales were $78.4 million, an $8.8 million or 10.1% decrease versus prior year. Organic sales decreased 10.1% due to lower volume (-8.3%) and lower pricing/mix (-1.8%) driven by the dairy business as we continue to be impacted by low-priced imports.

 

“Product innovation continues to be a big driver of our success and we are excited about our new product launches in 2023,” said Farrell. “We continue to differentiate our brands to consumers via innovative products, packaging and forms.”