Church & Dwight (NYSE: CHD) reported Q1 EPS of $0.96, $0.09 better than the analyst estimate of $0.87. Revenue for the quarter came in at $1.5 billion versus the consensus estimate of $1.49 billion.

We continue to expect full year 2024 reported and organic sales growth to be approximately 4 to 5%.1

“We now expect full year gross margin to expand approximately 75 basis points versus 2023 (previously 50 to 75 basis points). We continue to expect an increase in manufacturing costs primarily due to capacity-related investments, third party manufacturing cost increases, and moderate commodity inflation. We continue to expect to more than offset these cost increases through carryover product pricing, mix, higher volume and productivity.

“We continue to invest behind our brands and are targeting marketing as a percentage of sales to be approximately 11%. SG&A is now expected to be flat as a percent of sales compared to 2023 (previously expected leverage) reflecting incremental infrastructure investments in International and ecommerce, and costs related to the Graphico acquisition.”

“Our full year reported EPS growth is expected to be approximately +9.5-10.5% and our Adjusted EPS growth expectation is now 8-9%1 (previously 7-9%), inclusive of a slightly dilutive EPS impact from the Graphico acquisition. We continue to expect our tax rate to be approximately 23%.

“Cash flow from operations is now expected to be approximately $1.05 billion (previously $1.0 billion), which would be an all-time high for the Company.

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