Church & Dwight Co., Inc. (CHD) Q1 2023 Earnings Call Transcript

Church & Dwight Co., Inc. (NYSE:CHD) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET

Company Participants

Matthew Farrell - President and CEO

Richard Dierker - CFO

Conference Call Participants

Chris Carey - Wells Fargo

Kevin Grundy - Jefferies

Lauren Lieberman - Barclays

Rupesh Parikh - Oppenheimer

Olivia Tong - Raymond James

Dara Mohsenian - Morgan Stanley

Anna Lizzul - Bank of America

Bill Chappell - Truist

Peter Grom - UBS

Andrea Teixeira - JPMorgan

Javier Escalante - Evercore

Matthew Farrell

Good morning, everybody. Thanks for joining us today.

Operator

Good morning, ladies and gentlemen, and welcome to the Church & Dwight First Quarter 2023 Earnings Conference Call. Before we begin, I have been asked to remind you that on this call, the company's management may make forward-looking statements regarding, among other things, the company's financial objectives and forecasts. These statements are subject to risks and uncertainties and other factors that are described in detail in the company's SEC filings.

I would now like to introduce your host for today's call, Mr. Matt Farrell, President and Chief Executive Officer of Church & Dwight. Please go ahead, sir.

Matthew Farrell

Good morning, everyone. Thanks for joining us today. I'll begin with a review of the Q1 results. And then I'll turn the call over to Rick Dierker, our CFO. And when Rick is wrapped up, we'll open the call for questions.

So Q1 was a solid quarter. Reported revenue was 10.2%. Organic sales grew 5.7% and exceeded our 1% Q1 outlook. Of the 10.2% reported sales growth beat our outlook of 4%, thanks to stronger results from several brands, including Hero, THERABREATH, ARM & HAMMER laundry and ARM & HAMMER litter and exceptionally strong sales growth in our international business.

The other good news is that the vitamin business and the WATERPIK business hit their Q1 sales plan, and were right on expectations. And finally, it's also fair to say that we had a degree of conservatism in our original Q1 outlook, both top line and bottom line.

Our Q1 top line growth reflects the strength of our brands, both premium and value and also our focus on execution. The combination of consumer demand and improved case fill, which is now over 93% in the U.S. is resulting in strong revenue growth. Something else that is noteworthy, we had flat volume growth in Q1, which is an encouraging sign after declining volumes in the last six quarters, and we now expect volume growth in our full year net sales outlook.