Church & Dwight Co., Inc. stock research
FY2023 Q2
Church & Dwight (CHD) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from the year-ago period, driven by revenue growing faster than cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from the year-ago period, driven by revenue growing faster than cost of revenue.
- Revenue increased more than cost of revenue, leading to a higher gross profit and an expanded gross margin. The relationship between these metrics shows that the company generated greater profit per dollar of sales.
- Compared to the immediately preceding quarter, gross margin was slightly higher as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both increasing while cost of revenue rose at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.9%
Gross profit
$638.9M
Revenue
$1.5B
Cost of revenue
$815.3M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.8 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% |
| Jun 30, 2023 | $1.5B | $638.9M | $815.3M | 43.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.4 pts
Year-over-year change
Jun 30, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue increased more than cost of revenue, leading to a higher gross profit and an expanded gross margin. The relationship between these metrics shows that the company generated greater profit per dollar of sales.
Compared to the immediately preceding quarter, gross margin was slightly higher as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both increasing while cost of revenue rose at a slower pace.
Monitor the company's ability to manage cost of revenue growth in light of inflationary pressures and customer acceptance of price increases, as discussed in the filing.