Church & Dwight reports Q1 adjusted EPS 85c, consensus 77c

Reports Q1 revenue $1.43B, consensus $1.35B. CEO Matthew Farrell commented, "Our Q1 results reflect the strength of our brands and our focus on execution. Consumer demand and improved case fill is resulting in strong revenue growth. Volume being flat in Q1 is an encouraging sign after declining volumes in the last six quarters. We expect volume to be positive for the FY23 and show positive trends in the second half of the year. Our recent acquisitions, THERABREATH mouthwash and HERO, the maker of Mighty Patch acne care products, both experienced double-digit consumption growth and market share gains. Both of these businesses are rapidly gaining new distribution at retail…The Domestic business gained market share in 8 of our 14 power brands. Market share gains are expected to continue as we progress through 2023 and increase our marketing spending as a percent of sales. Global online sales as a percentage of total sales were 16.3% in Q1…Throughout the year, we expect sequential improvement in gross margin. Gross margin is expected to be positively impacted by the February round of litter pricing to cover cost increases as well as a second round of laundry concentration which was executed at the end of Q1. Strong sales growth, margin expansion and working capital management were all key drivers of our strong cash flow generation in Q1."