Church & Dwight Co., Inc. stock research
FY2024 Q3
Church & Dwight (CHD) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin weakened sequentially but improved year over year, as cost of revenue increased relative to the prior quarter but was lower compared to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin weakened sequentially but improved year over year, as cost of revenue increased relative to the prior quarter but was lower compared to the year-ago period.
- The gross margin improved year over year, driven by a lower cost of revenue relative to sales compared to the same quarter last year. Sequentially, the margin weakened as cost of revenue increased more than revenue.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue remained stable. Compared to the same quarter one year earlier, gross margin improved, with gross profit increasing and cost of revenue declining.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.2%
Gross profit
$683.1M
Revenue
$1.5B
Cost of revenue
$827.5M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $1.5B | $681.3M | $846.7M | 44.6% |
| Mar 31, 2024 | $1.5B | $687.0M | $816.3M | 45.7% |
| Jun 30, 2024 | $1.5B | $712.1M | $799.1M | 47.1% |
| Sep 30, 2024 | $1.5B | $683.1M | $827.5M | 45.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.9 pts
Year-over-year change
Sep 30, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year over year, driven by a lower cost of revenue relative to sales compared to the same quarter last year. Sequentially, the margin weakened as cost of revenue increased more than revenue.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue remained stable. Compared to the same quarter one year earlier, gross margin improved, with gross profit increasing and cost of revenue declining.
Monitor the trend in cost of revenue, as its sequential increase outpaced revenue growth and weighed on gross margin.