Church & Dwight Sees Weak EPS In Q1 Below Market, Flat To High Adj. EPS In FY23; Lifts Dividend

Consumer goods company Church & Dwight Co., Inc. (CHD), while reporting a loss in its fourth quarter, despite higher revenues, on Thursday issued forecast for first quarter and fiscal 2023.

For the first quarter, the company expects adjusted earnings per share of $0.752 per share, a 10 percent decrease from last year.

On average, 16 analysts polled by Thomson Reuters expect earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.

The company projects reported sales growth of approximately 4 percent, organic sales growth of approximately 1 percent, gross margin expansion and higher marketing and SG&A spending in the quarter.

Revenue and profits are expected to continue to be negatively impacted by softness in discretionary brands and the timing of equity grants.

Further, for fiscal 2023, adjusted earnings per share are expected to be flat to up 4 percent, and reported sales growth to be approximately 5 percent to 7 percent with organic sales growth of approximately 2 percent to 4 percent.

Pricing will drive the organic sales increase with volumes relatively stable.

Operating profit is expected to increase 4 percent to 8 percent reflecting the strength of the business. The 2023 adjusted operating profit margin would be relatively flat compared to 2022.

Over the long term, the company projects 3 percent organic net sales growth, gross margin expansion and 8 percent earnings per share growth.

Further, the Board of Directors declared a 4 percent increase in the quarterly dividend from $0.2625 to $0.2725 per share, equivalent to an annual dividend of $1.09 per share.

The quarterly dividend will be payable March 1, to stockholders of record at the close of business on February 15.

Matthew Farrell, Chief Executive Officer, said, "Although uncertainty remains regarding inflation, commodities, interest rates, currency movements, China, and consumer confidence, we are cautiously optimistic about 2023 and remain focused on offering high quality products to consumers at the right value."

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