NEW YORK - Church & Dwight Co., Inc. (NYSE:CHD) reported a robust first quarter, surpassing analyst expectations with adjusted earnings per share (EPS) of $0.96, which was $0.09 higher than the consensus estimate of $0.87. The company's net sales increased by 5.1% to $1.5 billion, edging past the analyst forecast of $1.49 billion.
The company's performance was marked by a significant gross margin expansion of 220 basis points and a 13.4% increase in reported EPS compared to the same period last year. Organic sales, which exclude the impact of acquisitions and currency fluctuations, also saw a healthy increase of 5.2%, with domestic growth at 4.3% and international growth at an impressive 8.8%.
CEO Matthew Farrell attributed the strong results to the company's robust brand portfolio and successful new product launches.
"Our outstanding Q1 results reflect the strength of our brands, the early success of our new products, and our perennial focus on execution," said Farrell. He also highlighted the role of volume growth as the primary driver of organic sales and projected its continuation throughout the year.
The company's online sales grew to encompass 20.5% of total consumer sales in Q1, representing a 14.9% dollar increase from the first quarter of the previous year. This digital growth, combined with effective working capital management, has positioned the company to anticipate approximately $1.05 billion in cash from operations for the full year.
Looking ahead, Church & Dwight raised its full-year outlook, expecting net sales growth between 4% and 5% and an adjusted EPS increase of 8-9%. Gross margin expansion projections were also lifted to approximately 75 basis points.
The acquisition of Graphico, a Japan-based distributor, is set to further bolster Church & Dwight's international presence and contribute to the expansion of the company's business in the Asia-Pacific region.
Despite the absence of a notable percentage change in the stock price post-earnings release, the company's financial health and strategic initiatives suggest a stable outlook for the future.
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