Church & Dwight (NYSE:CHD) 2026 Earnings Call Summary Company Overview - Church & Dwight is a $6.2 billion company with 77% of sales from domestic markets, 18% from international, and 5% from specialty products division (SPD) [5][6] - The company has a balanced portfolio, with 75% of sales and profits coming from seven key brands [5][6] Financial Performance - In Q4 2025, total sales grew by 3.9%, exceeding expectations, with organic growth at 0.7% [17][20] - Excluding the vitamins and minerals supplement (VMS) business, organic sales growth was 1.8% [18][20] - Gross margin improved by 90 basis points year-over-year, leading to an EPS of $0.86, a 12% increase from the previous year [18][20] - For the full year 2025, total sales were $1.6 billion, with organic growth adjusted to 2% after excluding VMS [20][21] - Cash flow for the year was strong at $1.2 billion, allowing for shareholder returns of $900 million [21][23] Strategic Initiatives - The company is focused on three growth pillars: growing core brands, expanding into new categories, and enhancing international presence [8][9][16] - The Evergreen Model is central to the company's strategy, aiming for 3%-4% organic growth in 2026, with reported sales expected to decline slightly due to business exits [24][27] - Gross margin is projected to improve by 100 basis points in 2026, with continued investment in marketing at 11% of sales [24][30] Brand Performance and Growth Strategies - **Arm & Hammer**: Targeting growth from $2 billion to $3 billion, leveraging its strong market position in laundry and cat litter [8][39] - Achieved a record share of 14.5% in laundry detergent, with a focus on value offerings [40][41] - Plans to expand in lightweight cat litter, where it currently holds an 8.5% share [41] - **TheraBreath**: Aiming to become the number one mouthwash brand, currently holding a 22% market share [47] - Plans to launch a new toothpaste product, tapping into a $4 billion category [48] - **Hero**: The acne brand grew at three times the category rate, with a focus on expanding its product line [54][56] - **Batiste**: Despite a decline in 2025, the brand remains a leader and will focus on innovation and revitalization efforts [57][59] Acquisitions and Portfolio Management - The acquisition of Touchland has been a significant driver of growth, with plans to expand its product offerings [23][63] - The company has divested from lower-performing brands, such as Spinbrush and vitamins, to focus on higher-margin products [3][22] Market Challenges and Consumer Sentiment - The overall market has seen deceleration, with consumer confidence at five-year lows, impacting category growth [7][8] - The company is adapting to these challenges by focusing on internal growth strategies and maintaining a strong balance sheet [3][22] Conclusion - Church & Dwight is optimistic about its future, with a strong focus on innovation, brand strength, and strategic acquisitions to drive growth in 2026 and beyond [39][37]

Core Insights - Church & Dwight Co., Inc. (CHD) reported strong fourth-quarter 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][4]. Financial Performance - Adjusted earnings per share (EPS) reached 86 cents, surpassing the Zacks Consensus Estimate of 84 cents, marking an 11.7% increase year over year [4]. - Net sales totaled $1,644.2 million, reflecting a 3.9% year-over-year increase and exceeding the consensus mark of $1,638 million [4]. - Organic sales rose by 0.7%, impacted by weaker category growth and softness in the vitamin business [4]. Margin and Expenses - Adjusted gross margin improved by 90 basis points to 45.5%, driven by productivity initiatives and a favorable product mix, although inflation and tariffs posed challenges [5]. - Marketing expenses increased by $4.4 million year over year as the company invested in brand growth, while adjusted selling, general and administrative (SG&A) expenses rose to 15.4% of net sales [5]. Segment Performance - Consumer Domestic segment net sales increased by 3.7% to $1,271.2 million, with organic sales slightly declining by 0.1% due to lower volumes [6]. - Consumer International segment net sales rose by 5.2% to $299.8 million, with organic sales growing by 3.6% driven by volume gains [7]. - Specialty Products sales increased by 2.8% to $73.2 million, supported by higher volumes and improved pricing [7]. Financial Health - Church & Dwight ended the quarter with cash and cash equivalents of $409 million and long-term debt of approximately $2.2 billion [8]. - Operating cash flow for the full year 2025 reached $1.2 billion, allowing for continued shareholder returns and strategic flexibility [8]. - The company repurchased $900 million worth of shares in 2025 and announced a 4.2% increase in its quarterly dividend, marking the 30th consecutive annual dividend hike [9]. Future Outlook - For 2026, CHD anticipates volume-led organic sales growth in the range of 3–4%, supported by a focused brand portfolio and innovation [11]. - Reported sales are expected to decline by 0.5–1.5% due to the impact of divested businesses [11]. - Adjusted gross margin is projected to expand by approximately 100 basis points, driven by higher volumes and productivity initiatives [12]. - Marketing spend is expected to exceed 11% of sales, with SG&A as a percentage of revenue projected to increase year over year [12]. - Adjusted EPS growth for 2026 is projected at 5–8%, with earnings momentum expected to be stronger in the second half of the year [13]. Q1 2026 Outlook - For the first quarter of 2026, CHD expects organic sales growth of approximately 3%, while reported sales are projected to decline about 1% due to business exits in 2025 [14]. - Gross margin is expected to improve year over year, with increased marketing and SG&A spending anticipated [14].

Core Insights - Church & Dwight reported revenue of $1.64 billion for the quarter ended December 2025, reflecting a year-over-year increase of 3.9% and matching the Zacks Consensus Estimate, resulting in a surprise of +0.39% [1] - The company's earnings per share (EPS) was $0.86, up from $0.77 in the same quarter last year, with an EPS surprise of +2.77% compared to the consensus estimate of $0.84 [1] Revenue Performance - Total Consumer Net Sales reached $1.57 billion, aligning with the six-analyst average estimate and showing a year-over-year growth of +4% [4] - Consumer Domestic sales amounted to $1.27 billion, slightly above the average estimate of $1.26 billion, marking a +3.7% increase year-over-year [4] - Consumer International sales were reported at $299.8 million, below the average estimate of $305.85 million, but still reflecting a +5.2% year-over-year change [4] - Specialty Products Division sales were $73.2 million, in line with the average estimate of $73.26 million, indicating a +2.8% year-over-year increase [4] Segment Analysis - Consumer Domestic Household Products sales were $645.3 million, slightly below the average estimate of $651.27 million, representing a year-over-year decline of -1.5% [4] - Consumer Domestic Personal Care Products sales reached $625.9 million, exceeding the average estimate of $613.17 million, with a significant year-over-year increase of +9.6% [4] Stock Performance - Church & Dwight's shares have returned +9.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

分组1 - Church & Dwight reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing an increase from $0.77 per share a year ago, resulting in an earnings surprise of +2.77% [1] - The company achieved revenues of $1.64 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.39%, and up from $1.58 billion year-over-year [2] - Church & Dwight has outperformed the S&P 500 with a share price increase of about 9.7% since the beginning of the year, compared to the S&P 500's gain of 1.8% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $1.52 billion, and for the current fiscal year, it is $3.73 on revenues of $6.31 billion [7] - The Zacks Industry Rank indicates that the Consumer Products - Staples sector is in the bottom 32% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Core Insights - Church & Dwight experienced sales growth in the fourth quarter, driven by an increase in personal care product sales, which compensated for a decline in revenue from household products [1] Company Performance - The increase in personal care product sales indicates a positive trend in consumer preferences towards personal care items [1] - The decline in revenue from household products suggests potential challenges in that segment, which may require strategic adjustments [1]

Financial Performance - The company expects full-year 2026 reported EPS to increase approximately 18% to 22% and adjusted EPS to grow by 5% to 8% [1] - For the first quarter, the company anticipates organic sales growth of approximately 3% and a reported sales decline of about 1% due to exited businesses in 2025 [2] - In the fourth quarter, the company's net income was $143.5 million, or $0.60 per share, compared to $189.2 million, or $0.76 per share, last year; adjusted EPS was $0.86, up 11.7% [4] Sales and Growth Initiatives - The company expects volume-driven organic sales growth of approximately 3% to 4% in 2026, with reported sales declining by approximately 1.5% to 0.5% due to exited businesses [1] - The company announced three incremental growth initiatives: expansion of the ARM & HAMMER brand, growth of the Oral care portfolio with THERABREATH, and international expansion through acquisitions [3] - Organic sales growth for the fourth quarter was 0.7%, lower than the company's outlook of approximately 1.5%, but was 1.8% when excluding the exited VMS [4] Market Reaction - In pre-market trading on NYSE, Church & Dwight shares increased by 3.6% to $95.28 [5]

Core Viewpoint - Caixabank anticipates an increase in lending income and profits for this year and the next, attributed to robust loan growth as Spain's economy outperforms the rest of the euro zone [1] Group 1 - The company expects stronger loan growth to drive its financial performance [1] - Spain's economic performance is highlighted as a key factor in Caixabank's positive outlook [1]

CHURCH & DWIGHT CO., INC. News Release Contact: Lee McChesney Chief Financial Officer 609-806-1200 CHURCH & DWIGHT REPORTS Q4 2025 AND 2025 RESULTS AND PROVIDES 2026 OUTLOOK Q4 2025 NET SALES, ADJUSTED GROSS MARGIN, ADJUSTED EPS AND CASH FLOW EXCEED OUTLOOK 2026 OUTLOOK OF ORGANIC SALES GROWTH OF 3-4% and ADJUSTED EPS GROWTH OF 5-8% ANNOUNCES 4% DIVIDEND INCREASE | 2025 Fourth Quarter Results | 2025 Full Year Results | | --- | --- | | • Net Sales Growth +3.9%: Domestic +3.7% Int'l +5.2% SPD | • Net Sales Gr ...

Core Insights - Church & Dwight Co., Inc. reported stronger than expected sales and earnings growth for the full year 2025, with net sales increasing by 1.6% to $6,203.2 million, surpassing the company's outlook of 1.5% growth [1] - The company achieved organic sales growth of 0.7%, despite challenges from exiting the VMS business and a slowdown in category growth [1][3] - The CEO highlighted the company's balanced portfolio and focus on execution, which contributed to market share gains and strong cash flow generation [2] Financial Performance - Full-year EPS was $3.02, reflecting a 27.4% increase from 2024, while adjusted EPS rose by 2.6% to $3.53, exceeding the company's outlook [5] - Q4 net sales reached $1,644.2 million, a 3.9% increase compared to Q4 2024, surpassing the company's 3.5% outlook [6] - Reported gross margin contracted by 100 basis points, but adjusted gross margin remained steady at 45.2% due to productivity and volume offsets [4] Segment Performance - Domestic division organic sales declined by 0.5%, while international division organic sales grew by 5.5%, driven by share gains across subsidiaries [3] - Specialty Products division saw organic sales growth of 2.6% [3] - Consumer Domestic net sales increased by 3.7% to $1,271.2 million, while Consumer International net sales rose by 5.2% to $299.8 million [7][8] Strategic Actions - The company exited its VMS, FLAWLESS™, SPINBRUSH™, and WATERPIK™ businesses to focus on faster-growing product lines [3] - A one-time after-tax charge of $45.6 million was incurred in Q4 due to the VMS exit, which represented less than 5% of the company's 2025 net sales [19] - The company repurchased $900 million in shares during 2025, indicating a strong commitment to returning value to shareholders [17] Cash Flow and Capital Management - Cash from operations for 2025 was $1.2 billion, an increase of $59.2 million from the previous year, with capital expenditures of $122.4 million [15] - As of December 31, 2025, total debt was $2.2 billion, and cash on hand was $409 million, providing robust liquidity for future growth opportunities [16] Dividend and Future Outlook - The Board of Directors declared a 4.2% increase in the quarterly dividend, marking the 30th consecutive year of dividend increases [21] - For 2026, the company expects volume-driven organic sales growth of approximately 3% to 4%, with reported sales anticipated to decline due to exited businesses [31] - The company plans to focus on innovation and brand support to drive future growth, with new product launches expected to contribute significantly to organic growth [30][34]

Core Viewpoint - Church & Dwight Company, Inc. (CHD) is set to announce its fourth-quarter fiscal 2025 earnings on January 30, with investors keen to see if the company can exceed market expectations [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $1.64 billion, indicating a 3.5% growth from the previous year [2] - The consensus estimate for earnings has decreased by one cent over the past month to 84 cents per share, suggesting a 9.1% increase year-over-year [2] - CHD has a trailing four-quarter earnings surprise average of 6% [2] Key Factors Influencing Q4 Performance - CHD's fourth-quarter performance is expected to be bolstered by strong momentum in its core brands, driven by effective innovation [3] - The company's diverse portfolio of value and premium products aligns well with current consumer preferences for affordability and high-quality personal care solutions [3] - Brands like Arm & Hammer have achieved record household penetration, particularly in the laundry segment, benefiting from a shift towards value offerings [3] Innovation and Marketing Strategies - The integration of Touchland has surpassed initial expectations, becoming a significant player in the hand sanitizer market [4] - CHD is utilizing its strong innovation pipeline, with new product launches in the Therabreath and Trojan lines anticipated to drive further growth [4] - Increased marketing investments are aimed at sustaining brand consumption and reinforcing competitive positioning [5] Operational Efficiency and Challenges - Productivity initiatives and supply chain strategies have helped mitigate inflation and tariff impacts, supporting profitability while allowing for continued investment in core brands [5] - However, the company is experiencing a decline in sales due to the winding down of discontinued businesses and negative trends in the vitamin and mineral supplement (VMS) sector [6] - The overall operating environment remains challenging due to high promotional activity in certain categories and constrained household finances affecting discretionary spending [6] Earnings Prediction Insights - The current model does not predict a definitive earnings beat for CHD, with an Earnings ESP of -0.81% and a Zacks Rank of 4 (Sell) [7][8]