Church & Dwight Co., Inc. reported a strong Q3 2023 performance, with earnings per share (EPS) of $0.74 surpassing the forecasted $0.68. This marks the fourth consecutive quarter of robust performance for the company. The global consumer business had a 5.8% organic growth, slightly offset by one point of negative growth in the SBD segment.
The company's revenue increased by 10.5%, and organic revenue growth was at 4.8%, both exceeding their respective projections. Gross margin expanded by 270 basis points, while marketing costs rose to constitute 11.5% of sales. The adjusted EPS outperformed the $0.66 projection due to higher sales and an expanding gross margin.
For the first time in eight quarters, volume growth turned positive at 2.7%, and this trend is expected to continue into Q4. Online sales made up 17% of global sales in Q3, showing a slight increase from the previous year's 16%.
However, despite low unemployment rates in the U.S. and major international markets, household balance sheets are strained due to lower savings and higher credit card debt.
InvestingPro Insights
According to the real-time data from InvestingPro, Church & Dwight Co., Inc. boasts a substantial market cap of 21.39B USD. The company is trading at a high earnings multiple, with a P/E ratio of 49.14, indicating strong investor confidence in its future earnings. Moreover, the company has experienced an impressive revenue growth of 8.81% over the last twelve months as of Q3 2023.
InvestingPro Tips highlight that Church & Dwight Co., Inc. has a history of consistent financial performance, with 19 consecutive years of raised dividends. The company also operates with a moderate level of debt and its liquid assets exceed short-term obligations, which provides financial stability. This is reflected in the company's P/E ratio (adjusted) of 27.92 as of Q3 2023.
In total, InvestingPro offers 12 additional insights on Church & Dwight Co., Inc., providing a comprehensive analysis of the company's financial health and future prospects. These insights can be an invaluable tool for investors interested in the company, and are part of the InvestingPro's advanced features.
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