Church & Dwight Co., Inc. Revenue & Financials

Church & Dwight reported FY2024 net sales of $6,107.1 million, a 4.1% increase from $5,867.9 million in FY2023, driven by 3.3% volume growth across all three segments and 1.3% favorable pricing/product mix, partially offset by 0.5% from the exit of product lines including the MEGALAC supplement portion of the SPD Animal Nutrition business and the sale of the Passport food safety business. Gross profit was $2,790.1 million, up 7.8% from $2,588.5 million in 2023, with gross margin expanding 160 basis points to 45.7%—the highest level in the company's modern history. This margin expansion reflected 140 basis points from productivity programs, 100 basis points from favorable price/volume/mix, 50 basis points from a favorable tariff ruling that returned $40.1 million in cash refunds from the U.S. government for certain products imported from China, and 10 basis points from the Graphico acquisition, partially offset by 140 basis points of higher manufacturing costs including labor and commodity inflation. Marketing expenses increased 8.9% to $698.1 million, representing 11.4% of net sales—up 50 basis points from 2023—as the company invested in new product launches and brand support. SG&A expenses were $927.8 million, up 4.3% from $889.8 million in 2023, but flat as a percentage of sales at 15.2% as growth investments in international expansion, R&D, and IT were offset by sales leverage. The company recorded a $357.1 million non-cash impairment charge in Q3 2024 related to the VMS trade names and other assets, reflecting deteriorating market share and financial performance in the vitamins, minerals, and supplements category due to significant competition from private-label entrants. This impairment reduced operating income to $807.1 million from $1,057.4 million in 2023, with operating margin declining 470 basis points to 13.3%. Excluding the impairment, adjusted operating income would have been approximately $1,164.2 million with an adjusted operating margin of approximately 19.1%. Net income was $585.3 million, down 22.5% from $755.6 million in 2023, with diluted EPS of $2.37 compared to $3.05 in 2023. Excluding the VMS impairment, adjusted diluted EPS was $3.47, representing 13.8% growth from 2023. Cash provided by operations was $1,156.2 million, up $125.6 million from 2023, primarily due to higher cash earnings. Capital expenditures were $178.8 million, resulting in free cash flow of $706.4 million. The company returned $277.0 million to shareholders through cash dividends in FY2024. The balance sheet as of December 31, 2024, showed total assets of $9,847.3 million, total liabilities of $5,934.1 million, and stockholders' equity of $3,913.2 million. Total debt was approximately $2.8 billion, with a debt-to-EBITDA ratio of approximately 2.1x—well within the company's target range of 2.0-2.5x. The company's market capitalization as of mid-2025 was approximately $22.9 billion, with a P/E ratio of 31.4x on a trailing basis and a forward P/E of approximately 28.5x for 2025. The stock trades at a premium to the S&P 500 consumer staples sector, reflecting the company's consistent execution, acquisition track record, and dividend growth history. Revenue per employee in FY2024 was approximately $1.06 million, one of the highest ratios in the CPG sector and a testament to the company's lean operating model.