QUOTE AND NEWS
Market Intelligence Center  Sep 10  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Church & Dwight Co. Inc. (CHD). Look at the Jan. '15 $70.00 covered call for a net debit in the $67.79 area. This trade has a...
MedPage Today  Sep 5  Comment 
(MedPage Today) -- Kidney stones were associated with an increased risk for coronary heart disease (CHD) and stroke, and the risk appeared to be greater for women than men in a meta-analysis of six cohort studies.
Market Intelligence Center  Sep 4  Comment 
For a hedged play on Church & Dwight Co. Inc. (CHD), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jan. '15 $70.00 covered call for a net debit in the $67.35 area. That is also the break-even stock price for the...
Market Intelligence Center  Sep 3  Comment 
After Tuesday’s trading in Church & Dwight Co. Inc. (CHD) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 4.17% or 11.18% (for comparison purposes only), while providing 2.18%...
Market Intelligence Center  Aug 21  Comment 
After Wednesday’s trading in Church & Dwight Co. Inc. (CHD) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 4.32% or 10.59% (for comparison purposes only), while providing 1.32%...
Forbes  Aug 11  Comment 
Church & Dwight (CHD) is one of the most visible brand owners specializing in over 80 personal care products. In its portfolio are iconic brands such as Arm & Hammer, Orajel, OxiClean, and Trojan to name a few.  Its products reach consumers...
SeekingAlpha  Aug 11  Comment 
By Spencer Naake: Church & Dwight (NYSE: CHD) is a consumer and specialty products company that recently declared its 454th regularly quarterly dividend. This streak is definitely an achievement but investors might be slightly misled by the...
SeekingAlpha  Aug 1  Comment 
Church & Dwight (NYSE:CHD) Q2 2014 Earnings Call August 01, 2014 10:00 am ET Executives James R. Craigie - Executive Chairman, Chief Executive Officer and Member of Executive Committee Matthew Thomas Farrell - Chief Financial Officer...
Market Intelligence Center  May 23  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Church & Dwight Co. Inc. (CHD) could yield about 5.01% (12.36% annualized, for comparison purposes only) in 148 days. Pair a long position in the stock with the Oct....
Clusterstock  May 1  Comment 
Emerging market economies offer fantastic growth opportunities for multinational corporation. But conducting business in these markets comes with all sorts of risk. They tend to experience high inflation rates and volatile currency swings. In...




 
TOP CONTRIBUTORS

Church & Dwight Company (NYSE: CHD) recorded 2007 total revenues of $2.2 billion. The company sells branded consumer products in the United States and abroad. The company's brands include Arm and Hammer and Trojan.[1] The company sells its consumer products through retailers such as Wal-Mart (WMT) [2]

In Q3 2008, falling consumer spending helped to increase purchases of Church & Dwight's value oriented products.[3] Also in 2007, Church & Dwight's sales to Wal-Mart Stores (WMT), its largest customer, accounted for 22% of the company's revenues giving Wal-Mart Stores (WMT) increased power to negotiate prices and volume discounts with Church & Dwight as well as exposing to company to decreased demand from the retailer.[4] In addition to facing pricing pressure from Wal-Mart Stores (WMT), Church & Dwight faces competitive pressure when raising prices. In 2006 the company raised the prices of some products 4-10%.[5] The price raises were partially negated because they resulted in decreased volume.[6] The company's consumer products compete with similar products from companies like Procter & Gamble Company (PG), Colgate-Palmolive Company (CL) and Unilever NV (UN) while its specialty products compete with those produced by companies such as Ecolab (ECL).

Business Overview

Church & Dwight produces consumer products under the Arm & Hammer, Brillo, Trojan, Nair and other brand names.[1] The company also sells speciality chemicals, animal nutrition products, and commercial cleaning products.[7] Consumers buy Church & Dwight products at supermarkets such as Safeway (SWY), mass merchandisers such as Wal-Mart Stores (WMT), wholesale clubs such as Costco Wholesale (COST) and similar retail outlets.[2]

Business and Financial Metrics

CHD Revenue by Geography
CHD Revenue by Geography[8]
Revenue and Income[9][10][11][12] ($ MM) 2008 2007 2006 2005
Consumer Domestic 1,717 1,574 1,389 1,218
Consumer International 420 388 337 297
Specialty Products 285 259 220 221
Total Revenue 2,422 2,221 1,946 1,737
Operating Income 340 305 252 213
Net Income 195 169 139 123

During 2008, Church & Dwight's total revenue increased by 9.1%.[13] 1.6% of this increase was due to the acquisition of Orajel while the rest of the increase resulted from increased volume and higher selling prices.[13] During the same period of time, gross margin increased from 39.1% to 40.1% as a result of increased prices and cost reduction programs.[13] Between 2006 and 2007, Church & Dwight's total revenue increased by over 14%. 8% of this increase was due to the acquisition of Orange Glo International and Spinbrush.[6] Another 5% of the increase in total revenue was due to increased sales volume while the remaining increase was due to favorable exchange rates.[6] Between 2005 and 2006, Church & Dwight's revenues grew 12%, 10% of which was due to acquisitions.[14]

Business Segments

CHD 2007 Revenue by Segment
CHD 2007 Revenue by Segment[9]
  • Consumer Domestic (71% of Revenues) manufactures and markets branded household and personal care products within the United States.[1] The segment's household products include Arm & Hammer baking soda and deodorizing products, Brillo cleaning pads, Oxyclean detergents and Orange Glo household cleaners as well as several other branded cleaning products.[1] Consumer Domestic's personal care products include Arm & Hammer branded toothpastes, Arm & Hammer branded deodorants, Trojan condoms, Rigident denture adhesives, First Response pregnancy tests and Nair hair removal products as well as other branded toothpastes, deodorants and other personal care products.[1] Consumer Domestic sells its products through supermarkets such as Safeway (SWY), mass merchandisers such as Wal-Mart Stores (WMT), wholesale clubs such as Costco Wholesale (COST) and similar retail outlets.[2] Church & Dwight's Consumer Domestic products compete with store brands as well as branded consumer products companies like Procter & Gamble Company (PG), Colgate-Palmolive Company (CL) and Unilever NV (UN).
  • Consumer International (17% of Revenues) makes and markets branded personal care and household products for international markets.[15] Consumer International's household brands include Arm & Hammer, Oxiclean, Orange Glo and others.[15] Its personal care brands include Trojan, First Response and Nair.[15] Consumer International sells its products through grocery stores, convenience stores, pharmacies and similar retailers.[16] Church & Dwight's Consumer International products compete with store brands as well as branded consumer products companies like Procter & Gamble Company (PG), Colgate-Palmolive Company (CL) and Unilever NV (UN).
  • Speciality Products (12% of Revenues) makes specialty chemicals such as chemical grade sodium bicarbonate, animal nutrition products such as feed grade sodium bicarbonate and commercial cleaning products for hotels, business buildings, restaurants and other facilities.[7] Specialty Products sells its chemicals, nutrition products and cleaners mainly through direct sale.[17]

Key Trends and Forces

3.1% decrease in consumer spending increases sales of Church & Dwight's value oriented products in Q3 2008

During Q3 2008, real consumer spending fell 3.1%.[18] Normally, a decrease in consumer spending results in consumers trading down to less expensive goods. However, trading down helps Church & Dwight because value oriented products comprise over 30% of the company's consumer product offerings.[3] Thus, decreases in consumer spending lead to increases in sales of Church & Dwight's value oriented products as consumers seek less expensive alternatives.[3] This effect helped Church & Dwight achieve organic revenue growth of 4% between Q3 2007 and Q3 2008 despite the shrinking U.S. economy.[19]

Church & Dwight's sales to Wal-Mart Stores (WMT), its largest customer, accounted for 22% of the company's 2007 sales

During 2005, Church & Dwight's sales to Wal-Mart Stores (WMT) accounted for 18% of the company's total sales.[20] In 2007, the percentage of Church & Dwight's sales to Wal-Mart Stores (WMT) increased to 22%.[20] Church & Dwight's dependence on Wal-Mart Stores (WMT) gives Wal-Mart Stores (WMT) increased power to negotiate prices and volume discounts with Church & Dwight as well as exposing to company to contract reductions from the retailer.[4]

Stiff competition from other branded consumer goods companies and store brands makes it hard for Church & Dwight to raise prices without losing sales

Because Church & Dwight faces stiff competition from other consumer products companies and store brands, when the company increases its prices it often receives lower demand. Church & Dwight faces especially strong competition from store brands because of 40% of grocery sales at Wal-Mart Stores (WMT) (Church & Dwight's largest customer) come from the company's store brands.[21] During 2006, Church & Dwight raised prices on products representing 35% of the Consumer Domestic segment's sales by 4-10%.[5] This increase in prices resulted in a 3% increase in the company's total revenues in 2006. However, the price increases made Church & Dwight's products less competitive with those produced by other consumer products companies and with store brands offered by retailers such as Wal-Mart Stores (WMT). As a result, decreases in volume caused by the price increases caused in a 2% decrease in the company's 2006 revenues, partially offsetting the revenue gains from the new prices.[6]

Key Competitors

Church & Dwight competes with other branded consumer products companies as well as store brands from retailers such as Safeway (SWY), Wal-Mart Stores (WMT), Walgreen Company (WAG). Church & Dwight's main competitors include:

  • Procter & Gamble Company (PG) makes and markets branded household and personal care products as well as snacks, baby care products and batteries. The company's household and personal care products compete with those produced by Church & Dwight's Consumer Domestic and Consumer International segments.[22]
  • Colgate-Palmolive Company (CL) makes and markets branded oral care products, other personal products, household products and pet nutrition products. The company's oral care, household products, and personal products compete with those produced by Church & Dwight's Consumer Domestic and Consumer International segments.[23]
  • Unilever NV (UN) is a Dutch company that produces packaged foods and branded products for the household and personal care markets. The company's household and personal care products compete with those produced by Church & Dwight's Consumer Domestic and Consumer International segments.[24]
  • Ecolab (ECL) offers its customers industrial sanitation and cleaning products and services. It's industrial cleaning products compete with those produced by Church & Dwight's Speciality Chemicals department.[25]

Church & Dwight and Key Competitors 2007 ($ in millions)

Company Total Revenues Net Income Net Profit Margin
Church & Dwight 2,221 169 8%
Procter & Gamble Company (PG) 76,476 10,340 14%
Colgate-Palmolive Company (CL) 13,790 1,737 13%
Unilever NV (UN) 55,084 5,329 10%
Ecolab (ECL) 5,470 427 8%

Note: Data forUnilever NV (UN)were converted to U.S. dollars using the average USD-EUR exchange rates for 2007.[26]



References

  1. 1.0 1.1 1.2 1.3 1.4 CHD 2007 10-K Item 1: Consumer Domestic, pgs 2-4
  2. 2.0 2.1 2.2 CHD 2007 10-K Item 1: Distribution for Consumer Domestic, pg 6
  3. 3.0 3.1 3.2 Seeking Alpha: Church & Dwight Co., Inc. Q3 2008 Earnings Call Transcript, pg 1
  4. 4.0 4.1 CHD 2007 10-K Item 1A: Risk Factors, pg 12
  5. 5.0 5.1 CHD 2007 10-K Item 7: Consumer Domestic, pg 31
  6. 6.0 6.1 6.2 6.3 CHD 2007 10-K Item 7: Consolidated Results 2007 compared to 2006, pg 27
  7. 7.0 7.1 CHD 2007 10-K Item 1: Speciality Products, pgs 6-7
  8. CHD 2007 10-K Item 1: Geographic Areas, pg 10
  9. 9.0 9.1 CHD 2007 10-K Item 8: Segment Information, pg 78
  10. CHD 2007 10-K Item 6: Selected Financial Data, pg 20
  11. CHD 2008 10-K Item 8: Segment Information, pg 80
  12. CHD 2008 10-K Item 6: Selected Financial Data, pg 23
  13. 13.0 13.1 13.2 CHD 2008 10-K Item 7 Consolidated Results 2008 compared to 2007, pg 30-31
  14. CHD 2007 10-K Item 7: Consolidated Results 2006 compared to 2005, pg 28
  15. 15.0 15.1 15.2 CHD 2007 10-K Item 1: Consumer International, pgs 4-5
  16. CHD 2007 10-K Item 1: Distribution for Consumer International, pg 6
  17. CHD 2007 10-K Item 1: Distribution for Speciality Products, pg 8
  18. Econbrowser: Real GDP fell slightly in 2008:Q3
  19. Seeking Alpha: Church & Dwight Co., Inc. Q3 2008 Earnings Call Transcript, pg 2
  20. 20.0 20.1 CHD 2007 10-K Item 1: Customers and Order Backlog, pg 9
  21. Wikinvest: Private Label Trends
  22. Google Finance: PG
  23. Google Finance: CL
  24. Google Finance: UN
  25. Google Finance ECL]
  26. Monthly Average Graph (American Dollar, Euro) 2007
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