Church & Dwight Reports Mixed Q3 2024 Results with Revenue Growth, Impairment Charges

Church & Dwight Co., Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For Q3 2024, net sales reached $1,510.6 million, reflecting a 3.8% increase from $1,455.9 million in Q3 2023. Gross profit also rose to $683.1 million, a 5.7% increase from $646.3 million in the prior year. However, the company reported a significant loss from operations of $(91.5) million, a stark contrast to the income of $255.8 million recorded in Q3 2023. This decline was primarily attributed to a $357.1 million impairment charge related to the Vitamins, Minerals, and Supplements (VMS) business, which has faced declining market share and financial performance.

For the nine months ended September 30, 2024, net sales totaled $4,525.1 million, up 4.3% from $4,339.9 million in the same period of 2023. Gross profit for this period increased by 9.2% to $2,082.2 million. However, income from operations decreased by 34.6% to $550.4 million, and net income fell to $396.1 million from $601.9 million in the prior year.

The Consumer Domestic segment reported net sales of $1,170.8 million for Q3 2024, an increase of 3.3% compared to the same quarter in 2023. Key contributors to this growth included HERO® acne treatment products and ARM & HAMMER® products. Conversely, the Consumer International segment saw a 9.5% increase in net sales to $267.7 million, driven by OXICLEAN® and THERABREATH® products.

Strategically, Church & Dwight completed the acquisition of Graphico, Inc. on June 3, 2024, for $19.9 million, which is expected to enhance its presence in the Asia-Pacific region. The company also sold its 50% interest in Armakleen in October 2024, a transaction deemed immaterial to its financial results.

Financially, as of September 30, 2024, Church & Dwight reported cash and cash equivalents of $752.1 million, a significant increase from $344.5 million at the end of 2023. Total assets rose to $8,666.2 million, while total liabilities decreased to $4,472.5 million. The company’s total stockholders' equity increased to $4,193.7 million from $3,855.4 million at the end of 2023.

Overall, while Church & Dwight experienced growth in sales and gross profit, significant impairment charges and operational losses impacted its profitability in Q3 2024.