Leading consumer products company,
Church & Dwight Co. Inc
) posted first-quarter 2013 earnings of 76 cents a share that
surpassed the Zacks Consensus Estimate of 72 cents and increased
15.2% from 66 cents earned in the comparable prior-year
This Zacks Rank #3 (Hold) stock witnessed an improvement of
12.8% in its top line to $779.3 million and surpassed the Zacks
Consensus Estimate of $777 million. Organic sales increased 2%,
reflecting 2.4% growth in volume, partially offset by negative
impact of 0.4% due to pricing and adverse product mix.
In terms of growth in bottom line, Church & Dwight's
results fared better than other players in the household products
) came up with lower-than-expected earnings results for the
third-quarter of fiscal 2013. The company's earnings of $1.00 per
share missed the Zacks Consensus Estimate of $1.06 and fell
nearly 3.8% from the year-ago quarter's adjusted earnings of
) reported first-quarter 2013 adjusted earnings of $1.32 per
share, rising 6% from the year-ago quarter's adjusted earnings of
$1.24 and in line with the Zacks Consensus Estimate.
Coming to Church & Dwight results, gross profit increased
15.7% to $350.1 million compared with $302.5 million in the
prior-year quarter. Moreover, gross margin expanded 110 basis
points to 44.9%, reflecting operating efficiencies and flat
Operating income escalated 18.6% year over year to 169.3
million during the quarter. Moreover, operating margin expanded
approximately 100 basis points to 21.7%.
Consumer Domestic's net sales elevated 15.7% year over year to
$591 million, driven by a 42.5% jump in personal care products
revenues to $232.3 million coupled with a 3.2% growth in
household products revenues to $358.7 million.
Organic sales rose 1.4% during the quarter, reflecting higher
sales of ARM & HAMMER liquid laundry detergents and unit dose
laundry detergent. Moreover, higher sales of TROJAN products,
OXICLEAN laundry additives and FIRST RESPONSE diagnostic kits
boosted results. This was, however, partially offset by sluggish
sales of KABOOM cleaners and ARM & HAMMER powdered laundry
Increase in sales represents a 1.8% improvement in volume,
while product mix and pricing unfavorably impacted sales by
Consumer International's sales increased 6.5% year over year
to $129.3 million. Organic sales increased 5.2% attributable to
healthy sales in Australia, UK and Mexico. The rise in organic
revenue reflected 6.2% growth in volume, while product mix and
pricing unfavorably impacted sales by 1%.
Specialty Products' sales increased marginally to $59 million.
Moreover, organic sales inched up 0.8%.The increase reflected
favorable contribution from product pricing of 1.2%, while volume
decline of 0.4% partially offset the sales growth.
Other Financial Details
Church & Dwight, which competes with
Proctor & Gamble Company
), ended the quarter with cash and cash equivalents of $259.6
million, long-term debt of $649.4 million and shareholders'
equity of $2,085.2 million.
During the quarter, the company repurchased 0.9 million shares
worth $50 million. Moreover, it generated operating cash flow of
$72.3 million and incurred $10.4 million in capital
Management stood by its earlier guidance and expects innovative
product launches to continue boosting organic sales in 2013. The
company reiterated organic sales growth in the range of 3%-4%.
Church & Dwight forecasts commodity prices to remain stable
and expects gross margin to rise by 25 -50 basis points.
Management anticipates earnings per share to be $2.79 for
2013, up 14% year over year. For the second quarter, Church &
Dwight expects organic sales growth of 3% to 4% and earnings per
share of 58 cents. The current Zacks Consensus Estimates for the
second quarter and full year are 72 cents and $2.81.
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