CHD - Church & Dwight Co. Inc. (CHD) Q4 2023 Earnings Call Transcript
2024-02-02 14:05:03 ET
Church & Dwight Co., Inc. (CHD)
Q4 2023 Earnings Conference Call
February 2, 2024 12:00 PM ET
Company Participants
Matt Farrell - President, Chief Executive Officer & Chairman
Rick Dierker - Executive Vice President, Chief Financial Officer & Head of Business Operations
Barry Bruno - Executive Vice President, Chief Marketing Officer and President, Consumer Domestic
Surabhi Pokhriyal - Chief Digital Growth Officer
Mike Read - Executive Vice President, International
Carlen Hooker - Executive Vice President, Chief Commercial Officer
Rick Spann - Executive Vice President, Chief Supply Chain Officer
Conference Call Participants
Steve Powers - Deutsche Bank
Dara Mohsenian - Morgan Stanley
Rupesh Parikh - Oppenheimer
Chris Carey - Wells Fargo
Andrea Teixeira - JPMorgan
Anna Lizzul - Bank of America
Kaumil Gajrawala - Jefferies
Filippo Falorni - Citi
Javier Escalante - Evercore
Olivia Tong - Raymond James
Presentation
Matt Farrell
Okay gang. It's a little bit like the Academy Awards. We're going to be hearing cutlery and clinking of plates and whatnot. All right. Thank you. Welcome, everybody. This is our 2024 Analyst Day, and we got all of our sell-side analyst friends in the room and lots of major shareholders.
So, let's begin. We have a Safe Harbor statement. Encourage everybody to read that after class. And I'm going to start -- virtually the entire management team, one of the best-looking management teams in CPG. I'm sure you'll agree. And we've got kind of a packed agenda. I won't read it to you, but got a number of people coming up, are going to talk to you today about financials, our new products, digital and also our international story.
So, here's a quick look back to 2023. So, we had a great year for reported and also organic growth, our reported 9% and organic 5%. And we had gross margin expansion of 220 basis points. You can hold the applause for a minute.
We had all-time high shares in a lot of our major brands, share gains. Marketing spending historically has been around 11%. We almost got all the way back to 10.9%. And we generated $1 billion in cash from operations. And finally, as you know, we've been investing in capacity for laundry, litter and vitamins and also adding to the capabilities of the company.
And here's our TSR. We show this to you every year, one, three, five and 10 years, especially what matters to our shareholders. 2022 was an abysmal year for us and we've recovered 2023. And we got a lot of confidence going forward, which you're going to walk out of the room here today thinking this is that.
We've got a lot of confidence in our ability to grow in the US. You see that we tweaked our evergreen model in our press release, so we're expecting 3% growth in the future in the US.
International, we've tweaked that there to say we expect 8% growth internationally going forward. We have a wonderful lineup of new products in 2024, but we've been consistent in our innovation for many, many years. We're becoming more and more digitally-savvy. So, one of the markers for that would be what percentage of your sales is online? And the answer is 20% of our sales is purchased online. That's over $1 billion in sales.
The new evergreen model is very healthy. I'm sure you're going to leave here today thinking that. We've got really strong fundamentals going forward. So, who are we? We're a $6 billion company, largely US. You see 78% domestic and 17% international. Specialty Products is our original business from back in the 1840s....
Church & Dwight Co., Inc. (CHD) Q4 2023 Earnings Call Transcript