Church & Dwight Co Inc (CHD) has reported a 2.99 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $124 million, or $0.47 a share in the quarter, compared with $120.40 million, or $0.45 a share for the same period last year.
Revenue during the quarter went up marginally by 1.03 percent to $870.70 million from $861.80 million in the previous year period. Gross margin for the quarter expanded 67 basis points over the previous year period to 45.43 percent. Total expenses were 77.49 percent of quarterly revenues, down from 77.88 percent for the same period last year. This has led to an improvement of 39 basis points in operating margin to 22.51 percent.
Operating income for the quarter was $196 million, compared with $190.60 million in the previous year period.
Matthew T. Farrell, President and Chief Executive Officer, commented, "We are pleased with our Consumer organic sales and the company’s earnings growth as our business overcame continued headwinds faced by our Specialty Products business. Our continued gross margin expansion in the third quarter provided us flexibility with our marketing and promotional investments to protect and grow our brand equities."
For the fourth quarter, we expect reported and organic sales growth of approximately 2.5% for global Consumer Products. The Consumer organic growth will be partially offset by continued headwinds in the Specialty Products business resulting in a net 1-2% reported and organic sales growth for the total Company. EPS is expected to be $0.42, a 2% increase over the prior year quarter. The prior year quarter included a $0.01 benefit from the full year 2015 R&D tax credit.”
Operating cash flow improves
Church & Dwight Co Inc has generated cash of $495 million from operating activities during the nine month period, up 21.09 percent or $86.20 million, when compared with the last year period.
The company has spent $202.80 million cash to meet investing activities during the nine month period as against cash outgo of $122.60 million in the last year period.
The company has spent $392.70 million cash to carry out financing activities during the nine month period as against cash outgo of $480.30 million in the last year period.
Cash and cash equivalents stood at $232.10 million as on Sep. 30, 2016, up 10.21 percent or $21.50 million from $210.60 million on Sep. 30, 2015.
Working capital drops significantly
Church & Dwight Co Inc has witnessed a decline in the working capital over the last year. It stood at $18.70 million as at Sep. 30, 2016, down 72.78 percent or $50 million from $68.70 million on Sep. 30, 2015. Current ratio was at 1.02 as on Sep. 30, 2016, down from 1.09 on Sep. 30, 2015.
Days sales outstanding went down to 32 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 53 days for the previous year period.
Debt comes down
Church & Dwight Co Inc has recorded a decline in total debt over the last one year. It stood at $929.70 million as on Sep. 30, 2016, down 5.23 percent or $51.30 million from $981 million on Sep. 30, 2015. Total debt was 21.71 percent of total assets as on Sep. 30, 2016, compared with 23.26 percent on Sep. 30, 2015. Debt to equity ratio was at 0.44 as on Sep. 30, 2016, down from 0.48 as on Sep. 30, 2015.
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