Church & Dwight Co., Inc. (CHD) CEO Matt Farrell on Q2 2022 Results Earnings Call Transcript

Church & Dwight Co., Inc. (NYSE:CHD) Q2 2022 Earnings Conference Call July 29, 2022 10:30 AM ET

Company Participants

Matt Farrell - CEO

Rick Dierker - CFO

Conference Call Participants

Kevin Grundy - Jefferies

Rupesh Parikh - Oppenheimer

Chris Carey - Wells Fargo

Olivia Tong - Raymond James

Bill Chappell - Truist Securities

Andrea Teixeira - JPMorgan

Kaumil Gajrawala - Credit Suisse

Stephen Powers - Deutsche Bank

Lauren Lieberman - Barclays

Dara Mohsenian - Morgan Stanley

Jason English - Goldman Sachs

Operator

Good morning, ladies and gentlemen and welcome to the Church & Dwight Second Quarter 2022 Earnings Conference Call. Before we begin, I have been asked to remind you that this call -- 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, Chief Financial [ph] Officer of Church & Dwight. Please go ahead, sir.

Matt Farrell

So I got promoted as CEO about seven years ago, but anyway. Good morning, everyone. Thanks for joining us today. We got a lot to talk about. I'll begin with a review of the Q2 results. And then I'll turn the call over to Rick Dierker, our CFO. And when Rick's done, we'll open the call for questions.

So Q2 was a solid quarter for us. Reported revenue was up 4.2%. Organic sales grew 3.4%. And this was in line with our 3% to 4% outlook. The adjusted EPS was $0.76. Now this was $0.06 higher than our outlook, but that was due to lower marketing.

We grew consumption in 11 of our 17 categories in which we compete and in some cases, on top of big consumption gains last year. Fill rates have improved to 90% in June, and we expect to get back to historical levels by the end of the year.

Regarding brand performance, we experienced double digit consumption growth in six of our 17 categories. And I'll name them for you. ARM & HAMMER scent boosters, ARM & HAMMER baking soda, ARM & HAMMER clumping litter, Batiste dry shampoo, ZICAM zinc supplements and TheraBreath mouthwash. And we gained share on eight of our 14 power brands. So that's a good story. Our shares are healthy.