CHURCH & DWIGHT CO., INC. CHURCH & DWIGHT CO., INC. dbAccess Global Consumer Conference 2025 SAFE HARBOR STATEMENT 2 CHURCH & DWIGHT CO., INC. We Remain Confident in our Future Despite a Volatile Environment This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth, the impact of the Touchland acquisition; the intended benefits of the exploration of strategic alternatives; gross margin changes; trade and marketing spending; marketing ...

Summary of Conference Call Company Overview - The company is known for its ARM and HAMMER brand, which has been a core part of its identity since its founding in 1846. The brand spans multiple categories including personal care, household products, cat litter, water detergent, and toothpaste [1][2][3]. Financial Performance - The ARM and HAMMER brand has grown from $1 billion to $2 billion, achieving a mid-single-digit CAGR over many years [2]. - The company has a total portfolio worth $6 billion, with $2 billion from ARM and HAMMER and $4 billion from other brands [3]. - Categories have shown resilience, with growth rates of 4.5% in early 2024 and 2.5% in the latter half of the year [4][5]. Market Dynamics - Consumer confidence has improved, leading to positive growth in April and May 2024 after a negative start to the year [6]. - The company has gained market share in various categories, with two-thirds of its portfolio gaining share over the past decade [7]. - The laundry detergent category has seen a share increase to 14.7%, up from 5% over the years [8]. Innovations and Acquisitions - The company has introduced a "good, better, best" strategy for its laundry products, enhancing its competitive edge [9]. - Recent acquisitions include Touchland, a hand sanitizer brand, purchased for $700 million plus an earn-out of $180 million, expected to close soon [17][18]. - Touchland is positioned to become the company's eighth power brand, with a focus on enhancing consumer experience through premium products [19]. International Expansion - International sales account for 18% of total revenue, with a goal of 8% organic growth year-on-year [27][28]. - The company has expanded its global footprint, recently entering Japan and aiming to grow its presence in over 50 countries [31][32]. - The international division has a strong track record of high single-digit growth, indicating significant potential for future expansion [30]. Specialty Products Division - The Specialty Products division aims for 5% organic growth, focusing on animal nutrition, performance products, and commercial applications [35]. - Nearly 30% of the animal nutrition sales now come from non-U.S. markets, highlighting the division's international focus [36]. Financial Strategy - The company targets 4% organic growth overall, with specific targets of 3% in the U.S., 8% internationally, and 5% for the Specialty Products division [39]. - Gross margin expansion is a key focus, with efforts to improve margins by 25 to 50 basis points annually [41]. - The company has a strong cash flow position, with $1 billion in cash from operations and significant acquisition capacity of over $5.5 billion [50]. Challenges and Outlook - The company has faced challenges from inflation and tariffs, leading to a projected adjusted EPS growth of 0% to 2% for 2025 [46][48]. - Despite these challenges, the company remains optimistic about its growth trajectory, particularly in innovation and international markets [53]. Key Takeaways - The ARM and HAMMER brand continues to perform well across various categories, with a strong focus on innovation and market share growth. - Recent acquisitions and international expansion are expected to drive future growth. - The company maintains a disciplined approach to M&A, focusing on asset-light acquisitions that enhance its portfolio [99][101].

Church & Dwight Co., Inc. (CHD) has entered into a definitive agreement to acquire Touchland, a fast-growing hand sanitizer brand. This strategic acquisition strengthens Church & Dwight’s position in the personal care market and adds a dynamic, youth-focused brand to its expanding portfolio. Church & Dwight intends to acquire the brand for $700 million at closing, paid through a mix of cash and restricted stock. The deal also includes an additional earn-out of up to $180 million based on Touchland’s 2025 ne ...

Summary of Church and Dwight's Conference Call Company and Industry - **Company**: Church and Dwight - **Industry**: Hand Sanitizer and Personal Care Products Key Points and Arguments Acquisition of TouchLynn Brand - Church and Dwight announced the acquisition of the TouchLynn brand for approximately **$700 million**, with potential total costs up to **$880 million** based on performance metrics by 2025 [3][8] - TouchLynn is noted as the **fastest growing brand** in the U.S. hand sanitizer category, currently holding the **number two position** in the market [4][5] - The U.S. hand sanitizer market is valued at approximately **$640 million** with low single-digit growth, but Church and Dwight sees potential for growth driven by new consumers entering the category [5][6] Market Position and Consumer Base - TouchLynn has a household penetration rate of **6%**, significantly lower than the category average of **37%**, indicating substantial growth potential [6][33] - The brand has established a loyal consumer base, particularly among younger demographics, and exhibits high levels of brand loyalty and repeat purchases [6][22] - The innovation strategy for TouchLynn focuses on four pillars: on-the-go use, distinct form factor, differentiated formulas, and a sensorial experience [7][22] Financial Projections and Impact - TouchLynn's trailing twelve-month net sales were approximately **$130 million** with an EBITDA of **$55 million** [8] - The acquisition is expected to be neutral to Church and Dwight's **2025 EPS**, with projections for **double-digit growth** in net sales for 2025 and 2026 [9][10] - By **2026**, the acquisition is anticipated to be **3% accretive** to cash earnings [9][91] Growth Opportunities - Church and Dwight plans to leverage its capabilities to accelerate TouchLynn's growth in international markets, including Canada and the Middle East [7][12] - The company sees potential for TouchLynn to expand into other categories, such as body mist, while maintaining a focus on maximizing the hand sanitizer market [24][65] Competitive Landscape and Risks - The company acknowledges the presence of low-end knockoff brands but believes that TouchLynn's quality and brand cachet will protect it from significant competition [46][76] - Church and Dwight is cautious about moving into mass channels too quickly, preferring to focus on existing distribution channels like Sephora and Ulta [50][53] Marketing and Brand Building - Currently, direct-to-consumer (DTC) sales account for about **6%** of the business, while online sales represent **30%** [56] - The brand has successfully utilized limited edition collaborations, such as with Hello Kitty and Disney, which have sold out quickly [58] - Future marketing efforts will focus on increasing household penetration and brand awareness, with a commitment to maintaining high margins while investing in growth [84][90] Conclusion - Church and Dwight's acquisition of TouchLynn represents a strategic move to enhance its portfolio in the personal care sector, with a focus on innovation, brand loyalty, and international expansion. The company is optimistic about the growth potential and financial impact of this acquisition while remaining vigilant about competitive risks in the market [3][10][93]

I gave a hold rating to Church & Dwight Co. ( CHD ) previously, with my key thesis being that slowing domestic growth would likely trigger a de-rating in multiples. My current view after lookingI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their ...

Core Viewpoint - Church & Dwight Co., Inc. (CHD) reported mixed first-quarter 2025 results, with adjusted earnings per share (EPS) beating estimates but net sales missing expectations, reflecting a challenging operating environment [1][2]. Financial Performance - Adjusted EPS for the quarter was 91 cents, surpassing the Zacks Consensus Estimate of 89 cents and the company's guidance of 90 cents, although it represented a 5.2% decline year over year [1]. - Net sales totaled $1,467.1 million, down 2.4% year over year, missing the Zacks Consensus Estimate of $1,511 million and the company's guidance for a nearly 1% increase [3]. - Organic sales decreased by 1.2%, driven by a 1.4% drop in volumes, partially offset by a 0.2% increase in pricing and mix [4]. Segment Analysis - **Consumer Domestic**: Net sales fell 3% to $1,129.8 million, with organic sales down 3% due to a 3.1% volume drop [6]. - **Consumer International**: Net sales increased by 2.7% to $261.9 million, with organic sales climbing 5.8%, driven by a 5.9% volume growth [7]. - **Specialty Products**: Sales declined 9.3% to $75.4 million, although organic sales grew by 3.2% [8]. Cost and Margin Insights - Gross margin contracted by 70 basis points to 45%, with adjusted gross margin at 45.1%, down 60 basis points year over year due to higher manufacturing costs [5]. - Marketing expenses decreased by $15.4 million year over year to $136.6 million, while adjusted selling, general, and administrative (SG&A) expenses increased by 40 basis points to 15.2% of net sales [5]. Future Outlook - For 2025, CHD projects organic sales growth of around 0-2%, down from a previous estimate of 3-4%, reflecting ongoing macroeconomic challenges [15]. - Adjusted EPS growth is now expected to be 0-2%, a reduction from the earlier guidance of 7-8% [17]. - The company anticipates a decline in organic sales of 2% for the second quarter, with adjusted EPS projected at 85 cents, a 9% decrease from the prior year [18].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 2025 OR For the transition period from to Commission file number 1-10585 CHURCH & DWIGHT CO., INC. (Exact name of registrant as specified in its charter) Delaware 13-4996950 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 500 Charles Ewing Boule ...

For the quarter ended March 2025, Church & Dwight (CHD) reported revenue of $1.47 billion, down 2.4% over the same period last year. EPS came in at $0.91, compared to $0.96 in the year-ago quarter.The reported revenue represents a surprise of -2.88% over the Zacks Consensus Estimate of $1.51 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +2.25%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Church & Dwight (CHD) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Church and Dwight's First Quarter twenty twenty five 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 ...

Church & Dwight (CHD) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Company Participants Rick Dierker - Board Member, President & CEOLee Mcchesney - EVP & CFOAnna Lizzul - Vice President, Equity ResearchOlivia Tong - Managing DirectorLauren Lieberman - Managing DirectorKaumil Gajrawala - Managing DirectorDara Mohsenian - Managing Director - US Beverage/Household Products SectorsFilippo Falorni - Director - Equity ResearchKevin Grundy - Managing DirectorRobert Moskow - Managing Director Conference Call Par ...