Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 90

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1B
Chunk 90
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(1) We exited the MEGALAC supplement portion of the Animal Nutrition business in the first quarter of 2024 and sold the Passport food safety business in the second quarter of 2024.  

Net sales excluding product line divestitures increased in the year ended December 31, 2024 primarily due to growth in our animal nutrition and specialty chemicals segments.

SPD income from operations was $39.1 in 2024, an increase of $15.6 compared to 2023.  The increase in income from operations for 2024 is due to favorable price/mix of $9.1, higher sales volumes of $3.4, lower SG&A costs of $9.1 primarily from product line exits, and lower marketing expenses of $1.4, partially offset by the gross margin impact of product line exits of $7.1, and unfavorable manufacturing costs of $0.4.

 Corporate

Corporate includes administrative costs of the production, planning and logistics functions which are reported as Cost of Sales in our Consolidated Statements of Income but are allocated to the operating segments in SG&A expenses to determine segment income from operations.  Such amounts were $67.9, $60.4 and $34.3 for 2024, 2023 and 2022, respectively.  The increase in 2023 compared to 2022 is primarily due to higher incentive compensation costs.

Also included in corporate are the equity in earnings of affiliates from Armand and ArmaKleen, totaling $9.1, $8.7 and $12.3 for the three years ended December 31, 2024, 2023 and 2022, respectively.  In October 2024, the Company sold its 50% interest in ArmaKleen to our joint venture partner.  

Liquidity and Capital Resources

On June 16, 2022, we entered into a credit agreement (the “Credit Agreement”) that provides for our $1,500.0 unsecured revolving credit facility (the “Revolving Credit Facility”) that matures on June 16, 2027, unless extended. We have the ability to increase our borrowing up to an additional $750.0, subject to lender commitments and certain conditions as described in the Credit Agreement.  Borrowings under the Credit Agreement are available for general corporate purposes and are used to support our $1,500.0 commercial paper program.