Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 175

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 175
---
 favorable price/volume/mix of 100 bps, a favorable tariff ruling of 50 bps, and benefits from the Graphico Acquisition of 10 bps, offset by the impact of higher manufacturing costs including labor and commodities of 140 bps.  

43

CHURCH & DWIGHT CO., INC AND SUBSIDIARIES(Dollars in millions, except share and per share data) 

Operating Costs 

Marketing expenses for 2024 were $698.1, an increase of $56.8 compared to 2023.  Marketing expenses as a percentage of net sales increased 50 bps to 11.4% in 2024 as compared to 2023 due to 90 bps on higher expense primarily from increased marketing spend to support new product introductions, offset by 40 bps of leverage on higher net sales.  

SG&A expenses for 2024 were $927.8, a decrease of $38.0 or 4.3% compared to 2023.  SG&A as a percentage of net sales was 15.2% in 2024 and 2023.  SG&A as a percentage of net sales was flat compared to 2023, as expenses were higher by 60 bps, primarily due to growth investments in our international division, Research and Development ("R&D") and Information Technology ("IT"), and the Graphico acquisition, offset by 60 bps of leverage associated with higher sales.  

Nonoperating Expenses

Trade name and other asset impairment charges were $357.1 million in 2024 related to non-cash charges to adjust the carrying value of intangible assets and property, plant, and equipment related to the VMS business.  The impairment was due to a continued decline in market share and a deterioration in the financial performance for the VMS business, which includes the VITAFUSION and L'IL CRITTERS trade name, primarily due to significant product competition coming from new category entrants, including private label.  See Note 7, “Goodwill and Other Intangibles, Net” to the Consolidated Financial Statements included herein for additional information. 

Interest income was $26.3 in 2024, an increase of $13.3 as compared to 2023, due to higher interest income primarily associated with higher cash balances. 

Interest expense in 2024 was $95.0, a decrease of $15.9 primarily due to lower average outstanding debt.