Consumer goods companies provide us with a dizzying array of useful products such as food, toiletries, and household items.
It’s safe to say that you probably can’t live without some of their products as they have become a staple in your life.
Hence, such businesses can make great investments as people need to constantly purchase from these companies, ensuring that they enjoy a constant flow of income.
If you are looking for promising consumer-related growth stocks, the US market offers a plethora of choices.
Here are four consumer goods companies that are displaying steady growth.
Domino’s Pizza (NASDAQ: DPZ)
Domino’s Pizza is the largest pizza company in the world with more than 21,000 stores in over 90 markets.
The pizza chain reported a commendable set of earnings for the first nine months of 2024 (9M 2024).
Revenue rose 6% year on year to US$3.3 billion while operating profit improved by 7.7% year on year to US$605.3 million.
Net profit climbed 14.6% year on year to US$414.7 million.
The business also generated a positive free cash flow of US$376.1 million, up 3.6% year on year.
A quarterly dividend of US$1.51 was declared, representing a sharp 25% year-on-year increase from the previous year’s US$1.21.
For 9M 2024, Domino’s Pizza saw its US stores enjoy a 4.5% same store sales growth while its international stores saw a 1.1% same store sales growth.
A total of 72 net new stores were opened in the third quarter of 2024 (3Q 2024), bringing the trailing 12-month net new store openings to 805.
Domino’s Pizza’s long-term guidance (2026 to 2028) is for 7% annual global retail sales growth and 8%+ annual operating income growth.
Pilgrim’s Pride (NASDAQ: PPC)
Pilgrim’s Pride is one of the largest poultry producers in the world and employs around 62,000 people.
The company operates protein processing plants and prepared-food facilities in 14 states in the US, Latin America, the UK, Ireland, and Continental Europe.
For 9M 2024, Pilgrim’s Pride reported sales of US$13.5 billion, up 5.2% year on year.
The business saw its gross margin more than double from 6.2% in 9M 2023 to 13% in 9M 2024.
As a result, operating profit leapt more than threefold year on year from US$338 million to US$1.2 billion.
Net profit shot up more than fourfold year on year to US$850.6 million.
The poultry giant also generated a positive free cash flow of US$1.3 billion, reversing the prior year’s negative free cash flow of US$32.7 million.
The company’s fresh chicken portfolio continued to enjoy healthy demand amid an improved mix of products.
Management also diversified the company’s value-added offerings and increased its branded prepared foods portfolio across retail and foodservice outlets.
Clorox Company (NYSE: CLX)
The Clorox Company manufactures and sells a portfolio of toiletries and household cleaning agents with famous brands such as Brita, Clorox, Glad, Pine-Sol, and Liquid-Plumr.
For the first quarter of fiscal 2025 (1Q FY2025) ending 30 September 2024, Clorox saw sales jump 27.1% year on year to US$1.8 billion.
Gross profit increased by almost 52% year on year to US$807 million while net profit leapt more than fourfold year on year to US$99 million.
Clorox generated positive free cash flow of US$182 million for the quarter, reversing the free cash outflow of US$4 million in the previous fiscal year’s quarter.
The business also upped its quarterly dividend from US$1.20 to US$1.22, the continuation of a long series of dividend increases that spans decades.
Clorox intends to continue growing by relying on its IGNITE strategy to focus on bigger, stickier innovation platforms.
IGNITE’s original target was for 2% to 4% annual revenue growth but this has been revised upwards to 3% to 5%.
Management highlighted new growth runways supporting by enduring shifts in consumer behaviour.
The company’s plan is to create a more stable and profitable international portfolio to drive continued growth.
WD-40 (NASDAQ: WDFC)
WD-40 produces and markets a wide range of maintenance, home care, and cleaning products.
These are sold under popular brands such as WD-40, Spot Shot, Lava, Solvol, and Carpet Fresh.
WD-40 reported a respectable set of earnings for its 1Q FY2025 ending 30 November 2024.
Sales increased by 9.3% year on year to US$153.5 million while operating profit inched up 4% year on year to US$25.1 million.
Net profit came in at US$18.9 million, 8.3% higher than the US$17.5 million generated a year ago.
The company also generated a positive free cash flow of US$14.2 million for the quarter.
WD-40 is also a solid dividend payer, and increased its most recent quarterly dividend from US$0.88 to US$0.94.
The company has set a strategic framework to grow by leading in geographic expansion, accelerating premiumisation, and doubling down on its digital commerce strategy.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
