Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Shareholder Meeting (May 2024)
30 slides from Church & Dwight's shareholder meeting presentation, May 2, 2024
Slide 1: Church & Dwight Stockholders' Meeting 2024
CHURCH & DWIGHT CO., INC. stockholders’ meeting 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending; sufficiency of cash flows from operations; earnings per share; cost savings programs;
Slide 3: We have confidence in our future
We have confidence in our future. Steady U.S. Sustainable high Consistent Digitally savvy New Evergreen Strong 2024 growth ahead International innovation model is fundamentals growth rate healthy 2024 STOCKHOLDERS’ MEETING 3
Slide 4: Church & Dwight: Who We Are
CHURCH & DWIGHT: Who We Are
Slide 5: We started with ARM & HAMMER baking soda
We started with ARM & HAMMER baking soda 2024 STOCKHOLDERS’ MEETING 5
Slide 6: We Are A $5.9 Billion Company
We Are A $5.9 Billion Company FABRIC CARE HOME HEALTH & HAIR & SKIN PERSONAL WATERPIK INTERNATIONAL SPECIALTY CARE WELL-BEING CARE CARE PRODUCTS 2024 STOCKHOLDERS’ MEETING 6
Slide 7: Power Brands
POWER BRANDS 7
Slide 8: 7 Power Brands
more than 70% of sales & profits are represented by these 7 POWER BRANDS 8
Slide 9: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $5.9 $ Billions $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 2024 STOCKHOLDERS’ MEETING 9
Slide 10: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily High growth and Asset Leverage Deliver #1 or #2 high margin light C&D sustainable share brands that are manufacturing, competitive brands fast moving logistics and advantage consumables purchasing 2024 STOCKHOLDERS’ MEETING 10
Slide 11: 7 Power Brands Today and More to Come
7 Power Brands Today and More to Come Net Sales $6.5 $ Billions $6.0 $5.5 7 $5.0 6 $4.5 $4.0 5 $3.5 $3.0 4 3 $2.5 $2.0 2 $1.5 $1.0 $0.5 $0.0 1 1846 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 STOCKHOLDERS’ MEE
Slide 12: How We Run the Company
How We Run the Company
Slide 13: Evergreen Model
Evergreen Model Organic Sales +4% Gross Margin +25 to +50 bps Marketing FLAT %, Higher $ SG&A (25) to 0 bps Operating Margin +50 bps EPS Growth +8% 2024 STOCKHOLDERS’ MEETING 13
Slide 14: Prioritized Uses Of Free Cash Flow
Prioritized Uses Of Free Cash Flow 1 TSR-Accretive M&A 2 Capex For Organic Growth & G2G 3 New Product Development 4 Debt Reduction 5 Return Of Cash To Stockholders 2024 STOCKHOLDERS’ MEETING 14
Slide 15: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage People Leverage Assets Leverage Brands Environment Acquisitions Highly productive We strive to be asset Brands consumers Long history of being people in a place light Good shareholder love around the world a friend to the wh
Slide 16: 1888: Promoting the Importance of Preserving the Environment
1888: Promoting the Importance of Preserving the Environment 2024 STOCKHOLDERS’ MEETING 16
Slide 17: Church & Dwight's Environmental Heritage
Church & Dwight’s Environmental Heritage 1888 1907 1970s 2017 2018 2021 2023 Company Company Sole sponsor of Partnering 100% of global Commitment Commenced introduces institutes the first Earth Day. with the Arbor electricity to Science projects for pro- use of Day demand offset Based Targets Scienc
Slide 18: Our ESG Scores Continue to Improve
Our ESG Scores Continue to Improve 2020 CCC B BB BBB A AA AAA 2021 CCC B BB BBB A AA AAA 2022 CCC B BB BBB A AA AAA 2023 CCC B BB BBB A AA AAA 2024 STOCKHOLDERS’ MEETING 18
Slide 19: Financials
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Slide 20: FY 2023 Financial Highlights
FY 2023 Financial Highlights Reported Sales Growth +9.2% Domestic: 5.3% Organic Sales Growth +5.3% International: 8.5% SPD: -7.9% Gross Margin +220 bps Reported EPS +82%, $3.05 Adjusted EPS +6.7%, $3.17 Cash from Operations $1.03B Organic sales and adjusted EPS are non-GAAP measures. Refer to the Ap
Slide 21: First Quarter 2024 Highlights
First Quarter 2024 Highlights Domestic +4.3% Organic Sales Growth 5.2% International +8.8% SPD +7.2% Gross Margin 45.7%, +220 bps Marketing % 10.1%, +150 bps Adjusted SG&A 14.8%, +80 bps Adjusted EPS Growth 12.9%, $0.96 Cash from Operations $263MM Organic sales, Adjusted SG&A and adjusted EPS are no
Slide 22: FY 2024 Financial Outlook
FY 2024 Financial Outlook FY OUTLOOK FY OUTLOOK (as of February 2) (as of May 2) Reported Sales Growth 4% to 5% 4% to 5% Organic Sales Growth 4% to 5% 4% to 5% Gross Margin +50 to +75 bps +75 bps Marketing Flat %, Higher $ +11% SG&A Leverage Flat Effective Tax Rate 23% 23% Adjusted EPS Growth 7% to
Slide 23: 4% Dividend Increase In 2024
4% Dividend Increase In 2024 $1.13 $1.09 $1.05 $1.01 $0.96 $0.91 123 $0.87 $0.76 consecutive years of dividends +119% +7.0% +14.5% +4.6% +5.5% +5.2% +4.0% +4.0% +4.0% +35% 2017 2018 2019 2020 2021 2022 2023 2024 2024 STOCKHOLDERS’ MEETING 23
Slide 24: Q&A
y Q&A
Slide 25: Reconciliations
Reconciliations www.churchdwight.com +119% +7.0% +14.5% +4.6% +5.5% +35% 2024 STOCKHOLDERS’ MEETING 25
Slide 26: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES CHURCH & DWIGHT CO., INC.’s Reconciliation of Non-GAAP Measures: The following pages provide definitions of the non-GAAP measures used in this presentation and reconciliations of these non- GAAP measures to the most directly comparable GAAP measures. These non-GAA
Slide 27: Reconciliation of Non-GAAP Measures: Organic Sales Growth
RECONCILIATION OF NON-GAAP MEASURES ORGANIC SALES GROWTH: The presentation provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes, from year-over-year comparisons. Management believes that the
Slide 28: Reconciliation of Non-GAAP Measures: Adjusted SG&A
RECONCILIATION OF NON-GAAP MEASURES Adjusted SG&A: This presentation discloses the Company’s SG&A expenses as a percent of net sales. Adjusted SG&A, as used in this presentation, is defined as selling, general and administrative expenses excluding significant one-time items that are not indicative o
Slide 29: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES Adjusted EPS: This presentation discloses reported EPS excluding the following, namely, earnings per share calculated in accordance with GAAP adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We b
Slide 30: Reconciliation of Non-GAAP Measures - Outlook
RECONCILIATION OF NON-GAAP MEASURES - OUTLOOK Reported and Organic Forecasted Sales Reconciliation Reported and Adjusted Diluted Earnings Per Share - Outlook 2024: Excludes an $0.08 charge related to restricted stock issued in the HERO acquisition. 2024 STOCKHOLDERS’ MEETING 30