Church & Dwight reported a solid Q4 2024, delivering revenue of $1.582 billion, up 3.5% year over year and 4.7% quarter over quarter. The quarter produced a meaningful margin recovery with gross profit of $707.9 million and a gross margin of approximately 44.7%, contributing to an operating income of $256.7 million and an operating margin around 16.2%. Net income reached $189.2 million, with diluted earnings per share of $0.76–$0.77, marking a strong post-Q3 rebound after a negative operating result in Q3 2024. Free cash flow generation remained robust, with cash from operations of $292.3 million and free cash flow of $237.7 million, supporting a solid balance sheet and a dividend policy reflected in a payout ratio near 36.8%. The earnings trajectory underscores CHD’s resilient consumer staples position, diversified product portfolio, and ability to translate topline growth into meaningful profitability and cash generation despite industry headwinds.
Key drivers included a favorable mix and pricing resilience across core brands (ARM & HAMMER, OXICLEAN, XTRA, FIRST RESPONSE and other flagship lines), improving operating leverage, and disciplined working capital management. The balance sheet shows ample liquidity (cash of $964.1 million) and a net debt position of about $1.44 billion, with interest coverage demonstrating cushion (about 11x). Valuation remains elevated versus broad market benchmarks, reflecting CHD’s defensible brand moat and steady cash flow generation. Investors should monitor input costs (raw materials, packaging), channel mix shifts, and currency dynamics given the London Stock Exchange listing (0R13.L) in USD terms, as well as any potential shifts in keep-through demand for household and personal care products.