Church & Dwight Co Inc (NYSE:CHD) reported first-quarter FY24 sales growth of 5.1% year-on-year to $1.50 billion, beating the analyst consensus estimate of $1.49 billion.
Organic sales increased 5.2%, driven by volume of 3.7% and positive product mix and pricing of 1.5%.
Net sales from Consumer Domestic increased 4.3% Y/Y, Consumer International grew 10.6%, and Specialty Products climbed 1%.
Adjusted EPS of $0.96 beat the consensus estimate of $0.87.
Gross profit increased 10.4% to $687 million. The gross margin expanded 220 basis points Y/Y to 45.7% due to improved productivity, volume, mix and pricing, net of the impact of higher manufacturing costs.
The operating income for the quarter was $305 million, with an operating margin of 20.3%.
The company held $349.7 million in cash and equivalents as of March-end. Net cash provided by operating activities for the quarter totaled $263 million.
Outlook: Church & Dwight continues to expect FY24 net sales and organic sales growth of 4% – 5%
The company revised adjusted EPS growth guidance from 7% – 9% to 8% – 9%.
For the second quarter, the company expects reported sales growth of approximately 3.5% and organic sales growth of approximately 4.0%, reflecting higher couponing in support of new products.
The company expects second-quarter adjusted EPS of $0.83 per share (estimate $0.92), down 10% versus last year.
Price Action: CHD shares closed lower by 1.51% at $106.26 on Wednesday.