Church & Dwight Co., Inc. exceeded its outlook with stronger than expected sales growth and gross margin expansion, officials said.

 

In the first quarter, net sales grew 5.1% to $1.5 billion, gross margin expanded by 220 basis points, and reported EPS grew 13.4%. The company said it continues to drive strong consumer demand across its portfolio. Organic sales grew 5.2% driven by volume of 3.7% and positive product mix and pricing of 1.5%.

 

 “The Company is performing extremely well with all three divisions delivering strong growth,” said Church and Dwight CEO Matthew Farrell. “Our outstanding Q1 results reflect the strength of our brands, the early success of our new products, and our perennial focus on execution. Volume was the primary driver of organic growth, and we expect volume growth to continue for the rest of the year.”

 

Consumer domestic net sales were $1.16 billion, a $48.3 million or 4.3% increase driven by both household and personal care sales growth. Organic sales increased 4.3% due to volume (+3.3%) and price and product mix (+1.0%). Growth was led by Therabreath mouthwash, Hero acne products, XTRA Liquid Detergent, and Batiste dry shampoo – partially offset by declines in the vitamin business and Waterpik.

 

Consumer international net sales were $255.0 million, a $24.4 million or 10.6% increase. Organic sales increased 8.8% due to a combination of higher volume (+5.4%) and price and product mix (+3.4%). Growth was led by Hero and Therabreath.

In terms of outlook for 2024, Farrell said he expects full year gross margin to expand approximately 75 basis points versus 2023 (previously 50 to 75 basis points). 

Net Sales Soar for Church & Dwight in Q2 2023