LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free earnings report on Church & Dwight Co., Inc. (NYSE: CHD), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CHD. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The maker of household and personal products outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For Q1 2018, Church & Dwight's net sales grew 14.7% to $1.01 billion compared to $877.2 million in Q1 2017. The Company's organic sales grew 3.8%, driven by a global consumer products growth of 4.2%. The Company's revenue numbers exceeded analysts' estimates of $979 million.
During Q1 2018, Church & Dwight's gross margin decreased 60 basis points (bps) to 44.9% compared to 45.5% in Q1 2017. Excluding the charge related to the sale of the Brazilian Specialty Products business, the Company's adjusted gross margin decreased 80 bps to 44.9%, primarily driven by higher commodities and transportation costs.
For Q1 2018, Church & Dwight's marketing expenses were $99.9 million, reflecting an increase of 10.0% compared to $90.8 million in Q1 2017. The Company's marketing expenses as a percentage of net sales decreased 40 bps to 9.9%, reflecting 2017 acquisitions which had a lower spend rate.
Church & Dwight's selling, general, and administrative expenses (SG&A) were $131.3 million, or 13.1% of net sales, in Q1 2018, representing an increase of 30 bps, primarily due to acquisitions, including intangible amortization costs.
Church & Dwight reported earnings of $157.8 million, or $0.63 per diluted share, in Q1 2018 compared to $131.5 million, or $0.51 per diluted share, in Q1 2017. The Company's results for Q1 2017 included a charge of $0.01 related to the sale of the Brazilian Specialty Products business. Church & Dwight's earnings surpassed Wall Street's estimates of $0.61 per share.
Segment Results
During Q1 2018, Church & Dwight's Consumer Domestic segment's net sales jumped 13.9% to $751.4 million, driven by recent acquisitions and household and personal care sales growth. The segment's organic sales increased 3.6% in Q1 2018, due to higher volume offset by price and product mix.
For Q1 2018, Church & Dwight's Consumer International segment's net sales surged 26.3% to $180.7 million, driven by recent acquisitions, the expansion of the Company's export business, and broad-based household and personal care growth. The segment's organic sales rose 6.8% in Q1 2018, due to higher volume and price and product mix.
Church & Dwight's Specialty Products segment's net sales were $73.9 million in Q1 2018, reflecting a 0.7% decline compared to the year ago same period. The segment's organic sales fell 1.0% in Q1 2018, due to a lower volume offset by commodity pass-through pricing, primarily in the animal productivity business.
Operating Cash Flow
For Q1 2018, Church & Dwight's net cash from operating activities was $155.5 million compared to $131.5 million in Q1 2017, due to higher cash earnings and a smaller increase in working capital. The Company's capital expenditure was $9.9 million in the reported quarter.
At March 31, 2018, Church & Dwight's cash on hand was $119.8 million, while its total debt was $2.4 million.
Outlook
For the full fiscal year 2018, Church & Dwight is forecasting sales growth to be 9%, and organic sales growth to exceed 3%. The Company re-affirmed its earnings per share (EPS) outlook of $2.24 to $2.28, or adjusted EPS growth of 16% to 18%, reflecting a continued strong business performance due to stronger volume growth and share gains.
For the second quarter of the fiscal year 2018, Church & Dwight is projecting reported sales growth of 12%, and organic sales growth of 3%. The Company is estimating EPS to approximate $0.46, representing an increase of 59% on a y-o-y basis, and an adjusted increase of 12%.
Stock Performance Snapshot
June 05, 2018 - At Tuesday's closing bell, Church & Dwight's stock was marginally down 0.53%, ending the trading session at $46.76.
Volume traded for the day: 2.38 million shares, which was above the 3-month average volume of 2.26 million shares.
After yesterday's close, Church & Dwight's market cap was at $11.45 billion.
Price to Earnings (P/E) ratio was at 23.83.
The stock has a dividend yield of 1.86%.
The stock is part of the Consumer Goods sector, categorized under the Cleaning Products industry.
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