Is Church & Dwight Stock Halal?
Table of Contents
How much of Church & Dwight’s revenue comes from haram?
Church & Dwight earns its revenue from the following revenue sources:
- Household Products:
Include deodorizing, cleaning, and laundry products.
- Personal Care Products:
Include oral care products, skin care products, hair care products, gummy dietary supplements, condoms, and pregnancy kits.
- SPD (Specialty Products Division):
Includes sodium bicarbonate-based products (baking soda) used for a range of applications including as a leaving agent for commercial baked goods, an antacid in pharmaceuticals, a CO2 release agent in fire extinguishers, and an alkaline agent in swimming pools.
Church & Dwight also offers a line of cleaning and deodorizing products for commercial and industrial applications such as in office buildings, hotels, restaurants and other facilities.
In addition, the company offers nutritional supplements designed to help improve the health and productivity of dairy cows.
The contributions from each of Church & Dwight’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Church & Dwight’s revenue comes from anything inherently haram.
Does Church & Dwight rely on interest to operate?
| Year-to-Date for period ended 3/31/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | – | – | – |
| Total Revenue | $1,238,900 | $4,895,800 | $4,357,700 |
| Interest Expense | $14,000 | $61,000 | $73,600 |
| Total Expenses | $936,300 | $3,866,100 | $3,517,500 |
| Interest Income / Revenue | – | – | – |
| Interest Expense / Total Expense | 1.50% | 1.58% | 2.09% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Church and Dwight’s operations.
What is Church & Dwight’s Environmental, Social, and Governance (ESG) impact?
Environment
In 2020, Church & Dwight achieved nearly 100% Certified or Recycled paperboard across global primary and secondary packaging.
Social
In 2020, Church & Dwight contributed approximately $4.8 million to communities by donating products, face coverings, hand sanitizers, supporting food banks, and distributing gift certificates to its employees to support local food establishments.
In addition, Church & Dwight has a relatively high Glassdoor rating of 3.8 out of 5.0 from over 300 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Church & Dwight has a net positive ESG impact.
Comfort Rating
From Church & Dwight’s business, financial, and ESG reviews, Practical Islamic Finance rates Church & Dwight stock as:
Comfortable to invest in from a Halal perspective.
Sources
CHURCH & DWIGHT 2020 Annual Report
CHURCH & DWIGHT Q1 2021 Report