CH

Church & Dwight Co., Inc. stock research

Jun 30, 2024

FY2024 Q2

Church & Dwight (CHD) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was unchanged from the preceding quarter and the year-ago period. Gross profit increased and gross margin strengthened as the cost of revenue declined relative to the flat revenue base.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was unchanged from the preceding quarter and the year-ago period. Gross profit increased and gross margin strengthened as the cost of revenue declined relative to the flat revenue base.

  • The primary driver of the gross margin improvement was the lower cost of revenue, which decreased from both the prior quarter and the year-ago period while revenue remained at the same level.
  • Compared to the immediately preceding quarter, gross profit was higher and gross margin advanced. Relative to the same quarter one year earlier, gross profit and gross margin both improved.

Gross margin snapshot

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

Gross margin

47.1%

Gross profit

$712.1M

Revenue

$1.5B

Cost of revenue

$799.1M

Quarter-over-quarter change

+1.4 pts

Year-over-year change

+3.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.5B$646.3M$809.6M44.4%
Dec 31, 2023$1.5B$681.3M$846.7M44.6%
Mar 31, 2024$1.5B$687.0M$816.3M45.7%
Jun 30, 2024$1.5B$712.1M$799.1M47.1%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+1.4 pts

Year-over-year change

Jun 30, 2023

+3.2 pts

What the margin says

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

The primary driver of the gross margin improvement was the lower cost of revenue, which decreased from both the prior quarter and the year-ago period while revenue remained at the same level.

Compared to the immediately preceding quarter, gross profit was higher and gross margin advanced. Relative to the same quarter one year earlier, gross profit and gross margin both improved.

Monitor the trajectory of cost of revenue, as its relative movement against stable revenue has been the key factor in margin changes.