Church & Dwight Co., Inc. stock research
FY2023 Q1
Church & Dwight (CHD) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue was stable compared to the prior quarter but higher than the year-ago quarter. Gross profit increased and cost of revenue decreased relative to the prior quarter, while both gross profit and cost of revenue were higher than the year-ago quarter, leading to an improved gross margin versus both periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue was stable compared to the prior quarter but higher than the year-ago quarter. Gross profit increased and cost of revenue decreased relative to the prior quarter, while both gross profit and cost of revenue were higher than the year-ago quarter, leading to an improved gross margin versus both periods.
- The strongest observable driver of the gross margin improvement was the favorable change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue remained steady; year-over-year, revenue grew faster than cost of revenue.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.5%
Gross profit
$622.0M
Revenue
$1.4B
Cost of revenue
$807.8M
Quarter-over-quarter change
n/a
Year-over-year change
+0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.4B | $622.0M | $807.8M | 43.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement was the favorable change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue remained steady; year-over-year, revenue grew faster than cost of revenue.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin also improved.
Monitor the company's ongoing ability to manage cost of revenue and pricing amid inflationary pressures and customer acceptance of price increases, as noted in the filing.