Church & Dwight Reports 4.1% Net Sales Increase to $6.1 Billion for Fiscal Year 2024

Church & Dwight Co., Inc. reported a net sales increase of 4.1% for the fiscal year ending December 31, 2024, reaching $6.1 billion, compared to $5.9 billion in 2023. The growth was driven by favorable volumes and pricing across its three segments: Consumer Domestic, Consumer International, and Specialty Products Division (SPD). Gross profit rose to $2.79 billion, reflecting a gross margin improvement of 160 basis points to 45.7%, aided by productivity programs and a favorable tariff ruling. However, the company faced challenges with an operating margin decline to 13.3%, primarily due to a significant impairment charge of $357.1 million related to its Vitamins, Minerals, and Supplements (VMS) business.

In terms of strategic developments, Church & Dwight made notable acquisitions and divestitures during the year. The company acquired Graphico, Inc., a Japan-based distributor, for approximately $19.9 million, which is expected to enhance its presence in the Asia-Pacific market. Additionally, the company exited the MEGALAC supplement portion of its Animal Nutrition business and sold its Passport food safety business, reflecting a strategic shift in its product offerings. These moves are part of a broader strategy to streamline operations and focus on core product lines.

Operationally, Church & Dwight reported a workforce of approximately 5,750 employees, an increase of 200 from the previous year. The company continues to emphasize its "power brands," which include ARM & HAMMER, OXICLEAN, and VITAFUSION, accounting for about 70% of its net sales and profits. The company also noted a significant reliance on a small number of customers, with Walmart representing approximately 23% of total sales in 2024. This concentration poses risks, as changes in customer strategies could impact sales.

Looking ahead, Church & Dwight's management expressed cautious optimism, focusing on maintaining competitive marketing and trade spending while controlling costs. The company plans to continue expanding its e-commerce presence, which accounted for 21.4% of consumer sales in 2024. However, management acknowledged potential challenges, including inflationary pressures and increased competition from private label brands, particularly in the dietary supplements category. The company aims to leverage its strong financial position to pursue further acquisitions and product innovations while navigating the evolving market landscape.