Church & Dwight Co. Inc. (NYSE:CHD) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 10:00 am ET


Church & Dwight Co. Inc. (NYSE:CHD) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Church & Dwight Second Quarter 2020 Earnings Conference Call. Before we begin, I've been asked to remind you that on this call, the company's management may make forward-looking statements regarding, among other things, the company's financial objectives and forecasts. These statements are subject to risks and uncertainties and other factors that are described in detail in the company's SEC filings.

0I would now like to introduce your host for today's call, Mr. Matt Farrell, Chief Executive Officer of Church & Dwight. Please go ahead, sir.

Matthew T. Farrell

Good morning, everyone. Thanks for joining us today. I'll begin with a discussion of the impact of COVID-19, followed by a review of the Q2 results and I'll turn the call over to Rick Dierker, our CFO. And when Rick is finished, we'll open the call up for questions. I'd like to give you a sense for how Church & Dwight has reacted to the pandemic. The virus disrupted just about everything. Consumer behavior, retailer operations, our supply chain and how we work. We pivoted every aspect of our business to meet the new challenges.

Initially, we had a daily huddle at 8:00 a.m. seven days a week to address employee safety, production levels, co-packer operations and shipment patterns. Today, we meet five days a week. We increased our communications with retailers and changed our marketing messages. We moved people to focus on the online class of trade to create and upload new content. To speed up our reaction time, we created new data feeds of POS data and retailer in stock levels. We added more co-packers to our supply chain network. We conduct weekly surveys of our consumers.

And all of our efforts are paying off. The agility and resilience of the Church & Dwight team shows up in our results. Our priorities continue to be employee safety, meeting the needs of consumers and retailers, helping the communities where we live and ensuring the strength of our brands. Our plant, warehouse and laboratory employees have done an exceptional job in keeping safe, which has contributed to our ability to operate our supply chain. The rest of our employees are working remotely and doing a super job running the company.

We have been supporting our communities through monetary and product donations, including the contribution of personal protective equipment. In June, we began producing hand sanitizer in our U.K. plant for both donations and employee usage. With respect to consumers and retailers, we are taking steps to increase both short and long-term manufacturing capacity, and we continue to work closely with suppliers and retail partners to keep pace with increased demand. A good example is our installation in Q2 of a new liquid laundry line in our York plant, which was quite a feat given the obstacles presented by COVID.

And as I mentioned before, we've added more co-packers to ensure steady supply for other categories. Now let's talk about the results. Q2 was an exceptional quarter. Reported