CH

Church & Dwight Co., Inc. stock research

Dec 31, 2023

FY2023 Q4

Church & Dwight (CHD) Gross Margin — Quarter Ended Dec 31, 2023

Revenue in the current quarter was similar to the previous quarter and higher than the same quarter last year. Gross profit increased relative to both periods, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue in the current quarter was similar to the previous quarter and higher than the same quarter last year. Gross profit increased relative to both periods, resulting in an improved gross margin.

  • The strongest observable driver of the margin improvement was the increase in gross profit, which grew faster than revenue compared to the prior year. Versus the prior quarter, gross profit rose while revenue remained stable, contributing to a modest margin expansion.
  • Compared to the immediately preceding quarter, revenue was essentially unchanged, cost of revenue was higher, gross profit was higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue, cost of revenue, and gross profit were all higher, with gross margin showing a notable improvement.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

44.6%

Gross profit

$681.3M

Revenue

$1.5B

Cost of revenue

$846.7M

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+2.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.4B$622.0M$807.8M43.5%
Jun 30, 2023$1.5B$638.9M$815.3M43.9%
Sep 30, 2023$1.5B$646.3M$809.6M44.4%
Dec 31, 2023$1.5B$681.3M$846.7M44.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

+0.2 pts

Year-over-year change

Dec 31, 2022

+2.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver of the margin improvement was the increase in gross profit, which grew faster than revenue compared to the prior year. Versus the prior quarter, gross profit rose while revenue remained stable, contributing to a modest margin expansion.

Compared to the immediately preceding quarter, revenue was essentially unchanged, cost of revenue was higher, gross profit was higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue, cost of revenue, and gross profit were all higher, with gross margin showing a notable improvement.

Monitor the trend in cost of revenue, as it increased from both the prior quarter and the year-ago period.

CHD Gross Margin — Quarter Ended Dec 31, 2023