Church&Dwight Co. Inc.

Overview Key strengths Key risks Strong market positions in niche categories and diversified product portfolio. Highly acquisitive, resulting in temporary leverage increases. Consistent organic revenue growth in the low-to-mid, single-digit range. Participation in highly competitive laundry category. Track record of deleveraging after acquisitions. Exposure to commodity and supply chain cost volatility. Historically, the company has met or exceeded that target. Most recently, for the first quarter ended March 31, 2022, C&D generated a growth of 2.7% organic revenue, volumes declined 5.1%, and price and mix increased by 7.8%. Reported revenues grew 4.7%, with a 2.3% contribution from acquisitions. C&D?s gross margin declined 190 basis points (bps) due to higher labor, commodity, and transportation costs. Its operating margin shrank by 280

...We expect Church & Dwight Co. (C&D) to generate revenue growth of at least 3%. Historically, the company has met or exceeded that target. Most recently, for the first quarter ended March 31, 2022, C&D generated a growth of 2.7% organic revenue, volumes declined 5.1%, and price and mix increased by 7.8%. Reported revenues grew 4.7%, with a 2.3% contribution from acquisitions. C&D's gross margin declined 190 basis points (bps) due to higher labor, commodity, and transportation costs. Its operating margin shrank by 280 bps because of its lower gross margin and higher operating expenses. As of February 2022, the company had taken price increases on approximately 80% of its portfolio and announced another round of increases on fabric care and litter products effective in July 2022....

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