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Higher Costs Dent Profits Despite Sales Beat
1 May
Summary
- Net income fell to $216.3 million due to increased costs.
- Sales surpassed expectations, rising 0.2% to $1.47 billion.
- Company forecasts a sales decline for the full year.
Church & Dwight reported a decrease in first-quarter net income, falling to $216.3 million from $220.1 million in the prior year period. This decline, equivalent to 91 cents per share, was attributed to elevated marketing expenditures and increased costs associated with its recent $880 million acquisition of Touchland. Adjusted earnings per share met analyst expectations at 95 cents.
Despite the profit dip, the company's revenue performance was stronger than anticipated. First-quarter sales saw a modest 0.2% increase, reaching $1.47 billion, surpassing analyst forecasts of $1.46 billion. Organic sales experienced a more robust growth of 5%, outperforming the company's own projection of 3%, with positive contributions from all three business segments.
For the full year, Church & Dwight projects a slight decrease in net sales, ranging from 0.5% to 1.5% below the previous year's $6.2 billion. However, organic sales are expected to grow between 3% and 4%. The company also anticipates a significant rise in earnings per share for the year, with adjusted earnings per share projected to increase by 5% to 8%.
