Church & Dwight Co, Inc. (CHD) Q3 2022 Earnings Call Transcript

Church & Dwight Co, Inc. (NYSE:CHD) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET

Company Participants

Matthew Farrell - President, CEO & Chairman

Richard Dierker - CFO, EVP & Head of Business Operations

Conference Call Participants

Dara Mohsenian - Morgan Stanley

Christopher Carey - Wells Fargo Securities

Kaumil Gajrawala - Crédit Suisse

William Chappell - Truist Securities

Sunil Modi - RBC Capital Markets

Jason English - Goldman Sachs

Kevin Grundy - Jefferies

Andrea Teixeira - JPMorgan Chase & Co.

Jonathan Feeney - Consumer Edge Research

Bryan Adams - UBS

Olivia Cheang - Raymond James & Associates

Lauren Lieberman - Barclays Bank

Anna Lizzul - Bank of America Merrill Lynch

Stephen Powers - Deutsche Bank

Rupesh Parikh - Oppenheimer

Operator

Good morning, ladies and gentlemen, and welcome to the Church & Dwight Third Quarter 2022 Earnings Conference Call.

Before we begin, I have been asked to remind you that on today's 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, Chief Executive Officer of Church & Dwight. Please go ahead, sir.

Matthew Farrell

Okay. Thank you, operator. Good morning, everyone. Thanks for joining us today. We've got lots to talk about. I'm going to begin with a review of Q3 results. Then I'll turn the call over to Rick Dierker, our CFO. And when Rick is done, we'll open the call for questions.

First off, I'll say, we revised our full year revenue outlook in early September, and we're tracking to hit 3%, which was the midpoint of our 2% to 4% range at that time.

In Q3, reported revenue was up 0.4%, and that exceeded our expectation of minus 1%.

As you read in the release, while the majority of our brands are performing well. We have 3 businesses that are coloring our results this year. And those are WATERPIK, our vitamin business, and FLAWLESS. And those businesses account for -- accounted for a 6% sales headwind in Q3.

Adjusted EPS was $0.76. Now this was $0.11 higher than our EPS outlook, driven by higher international sales, lower SG&A and timing of marketing spend. The U.S. portfolio grew consumption in 11 of 17 categories. The trade down to value laundry detergent continued as ARM & HAMMER liquid detergent achieved an all-time high market share of 14.3%.