Net Sales Increase 3.9% for Church & Dwight in Q2 2024

Net sales grew 3.9% for Church & Dwight Co., Inc. in Q2 204 to $1.5 billion. Organic sales grew 4.7% driven by volume of 3.5% and positive product mix and pricing of 1.2%, officials said.

“Our outstanding Q2 results reflect the strength of our brands, the early success of our new products and our perennial focus on execution,” said CEO Matthew Farrell. “Volume was the primary driver of organic growth, and we expect volume growth to continue for the rest of the year. Marketing as a percent of sales increased 100 basis points driving strong consumption and share gains. Global online sales grew to 21.2% of total consumer sales in Q2. And finally, the combination of strong sales, margin expansion and efficient working capital management resulted in strong cash flow generation in the first half, with over $1 billion of cash from operations expected in the full year.

Further, officials said domestic consumption of its products outpaced organic sales primarily due to retailer inventory reductions and prior year distribution gains for Hero.

The international division grew 9.3% organically, driven by growth in its country subsidiaries and its global markets group. In July, it completed the previously announced acquisition of Graphico, its Japan based distributor.

Consumer domestic net sales were $1.17 billion, a $42.4 million or 3.8% increase driven by both household and personal care sales growth. Organic sales increased 3.8% due to volume (+3.3%) and price and product mix (+0.5%). Growth was led by Therabreath mouthwash, Hero acne products, Arm & Hammer liquid detergent and Xtra liquid detergent, partially offset by declines in the vitamin business and Flawless.

Consumer international net sales were $263.7 million, a $21.8 million or 9.0% increase. Organic sales increased 9.3% due to a combination of higher volume (+4.6%) and price and product mix (+4.7%). Growth was led by Hero, Therabreath and vitamins.

Outlook for 2024

Officials said it’s raising its outlook for full year adjusted gross margin expansion to approximately 100-110 basis points versus 2023 (previously 75 basis points). The company continues to expect carryover product pricing, mix, higher volume and productivity to offset higher manufacturing costs.

For Q3, the company expects reported sales growth of approximately 2.5% and organic sales growth of approximately 3%.