- Church & Dwight Co Inc (NYSE: CHD) reported second-quarter FY22 sales growth of 4.2% year-on-year to $1.33 billion, missing the consensus of $1.34 billion.
- Organic sales grew 3.4%, driven by positive pricing of 6.3% but offset by a volume decline of 2.9%.
- Net sales from Consumer Domestic rose 4.7% Y/Y, Consumer International grew 1.6%, and Specialty Products jumped 6.3%.
- The gross margin compressed 220 basis points Y/Y to 41.2% due to higher raw material, manufacturing, and distribution costs, net of improved pricing, productivity, and favorable mix.
- The operating margin contracted from 23.5% to 19.8%, and operating income for the quarter rose 12.4% to $261.6 million.
- The company held $639.7 million in cash and equivalents as of June 30, 2022. Net cash provided by operating activities for six months totaled $310.4 million.
- Adjusted EPS of $0.76 beat the analyst consensus of $0.72.
- Outlook: Church & Dwight sees FY22 net sales growth of 4% - 5% (previously 5% - 8%). Organic sales growth of 3% - 4% (previously 3% - 6%).
- The company now expects EPS to be flat to the 2021 adjusted result.
- For Q3, CHD expects reported sales growth of approximately 2-4%, organic sales growth of approximately 1-3%, and gross margin contraction.
- The company expects EPS of $0.65 (consensus $0.86), a 19% decrease from last year's adjusted Q3 EPS.
- Price Action: CHD shares traded lower by 8.44% at $88.09 on the last check Friday.
Read at Benzinga