Church & Dwight reports Q4 sales beat but EPS down on $411M impairment; provides 2023 outlook and raises dividend 4%

Q4 net sales were $1,436.0 million, a $67.3 million or 4.9% increase, including a 1% drag from currency. This exceeded the Company’s outlook of 2% growth. Organic sales increased 0.4% 1 , exceeding the Company’s outlook of down 1%, driven by 4.2% positive price and product mix offset by 3.8% lower volume. Our U.S. portfolio grew consumption in 13 of 17 categories in Q4. The trade down to value laundry detergent continued as ARM & HAMMER ® liquid detergent achieved an all-time high market share again in Q4. ARM & HAMMER liquid detergent, ARM & HAMMER Unit Dose and ARM & HAMMER Scent Boosters all grew volume high single digits in the quarter. ARM & HAMMER clumping litter and BATISTE ® dry shampoo achieved all-time market share highs. Our recent acquisitions, ZICAM ® , THERABREATH ® and HERO ® all experienced double-digit consumption growth and market share gains in the quarter. In Q4, discretionary brands (WATERPIK ® and FLAWLESS) and the vitamin business, which account for approximately

Church & Dwight Co., Inc. (NYSE: CHD) today announced full year net sales increased 3.6% to $5,375.6 million including a 1% drag from currency, exceeding the Company’s outlook of 3%. Organic sales increased 1.4% due to positive pricing of 6.5%, partially offset by a volume decline of 5.1%. 1 Full year Reported EPS was $1.68, a decline of 49.4% compared to 2021 reported EPS, including a $411 million impairment charge of Flawless intangible assets as a major retailer discontinued select products. The decline in discretionary consumption and higher interest rates are also expected to impact the future cash flow generation for that business. The Company continues to believe in the long-term growth opportunities for the Flawless brand. Full year 2022 Adjusted EPS was $2.97, a decline of 1.7% compared to 2021 adjusted EPS.