Church & Dwight: Strong Revenue Growth for 2017

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Trojan condom maker finds healthy growth

Church & Dwight (CHD), $11.2 billion Trojan condom maker, has underperformed the broader market so far this year having provided -8.2% total losses to its shareholders.

Interestingly, the company reported healthy and strong results for its 2017 operations. CHD recorded 8.1% rise in revenue and 62% increase in profits.

“Q4 organic sales growth exceeded our outlook in all three segments. Our Q4 category growth improved sequentially and year over year. The Consumer Domestic business had strong volume growth in Q4 while the promotional environment improved. In the domestic business, 7 out of 11 power brands exceeded category growth in 2017. The investments in our international business, particularly export, are paying off as evidenced by consistent organic growth which we expect to continue. In 2017, we made a great acquisition with Waterpik. Finally, we concluded the year with strong growth in our animal productivity business. We are hitting on all cylinders.”

Matthew Farrell, Chief Executive Officer

Income taxes brought a one-time favorable adjustment to the company’s bottom line.

Even with this one-time gain, CHD reported $2.4 billion debt, $279 million cash, and $2.2 billion book value.

In the past three years, CHD allocated $276 million in financing activities with $1.7 billion in shareholder dividends and buybacks, and accumulatively generated $1.8 billion in free cash flow.

Average analysts recommendation is a hold with $50.18/share price target vs. $45.84 at the time of writing. This blog’s estimates indicated a per share figure of $43.3.

Disclosure: No shares in CHD.

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