Church & Dwight(US:CHD)2025-10-31 11:04Financial Performance - Q3 2025 net sales increased by 5.0% to $1,585.6 million, with domestic sales up 4.2% and international sales up 8.4%[3] - Organic sales grew by 3.4%, driven by a volume increase of 4.0%, partially offset by a negative pricing and mix impact of 0.6%[3] - Reported EPS was $0.75, compared to a loss of $0.31 last year, while adjusted EPS increased by 2.5% to $0.81[6] - Net sales for Q3 2025 reached $1,585.6 million, a 4.9% increase from $1,510.6 million in Q3 2024[34] - For the nine months ended September 30, 2025, total net sales were $4,333.2 million, a 0.9% increase from $4,293.0 million in the prior year[38] - Net sales for the nine months ended September 30, 2025, reached $4,559.0 million, reflecting a year-over-year increase of 33.9%[51] Income and Profitability - Net income for the nine months ended September 30, 2025, was $593.3 million, up 49.7% from $396.1 million in 2024[36] - Net income for the three months ended September 30, 2025, was $182.2 million, down from $257.3 million in the same period last year, marking a decrease of 29.1%[50] - Net income for the nine months ended September 30, 2025, was $593.3 million, with a net income per share of $2.41, up 49.7% year-over-year[51] - Gross profit for the nine months ended September 30, 2025, was $2,021.0 million, compared to $2,082.2 million for the same period in 2024, reflecting a decrease of 2.9%[34] - Gross profit for the same period was $2,021.0 million, with a gross margin of 44.3%, down 1.7% year-over-year[51] Expenses - Marketing expenses increased by $17.1 million to $202.9 million, representing 12.8% of net sales, up 50 basis points from the previous year[10] - Marketing expenses increased to $202.9 million in Q3 2025, compared to $185.8 million in Q3 2024, representing a 7.6% rise[34] - Marketing expenses amounted to $496.6 million, representing 10.9% of net sales, an increase of 0.1% year-over-year[51] - SG&A expenses were $712.8 million, accounting for 15.6% of net sales, which is an increase of 0.5% year-over-year[51] Cash Flow and Investments - Cash from operations for Q3 was $435.5 million, a 19.6% increase year-over-year, with a full-year expectation of approximately $1.2 billion[13] - The company reported a net cash used in investing activities of $725.3 million for the nine months ended September 30, 2025, compared to $138.1 million in 2024[36] - The company experienced a decrease in cash and cash equivalents, with a net change of $(658.8) million for the nine months ended September 30, 2025[36] Strategic Initiatives - The company plans to exit the FLAWLESS™, SPINBRUSH™, and WATERPIK™ showerhead businesses by early 2026[7] - The company is exploring strategic alternatives for certain businesses, which may impact future performance and market positioning[31] Dividends and Share Repurchase - The company declared dividends of $0.30 per share for Q3 2025, up from $0.28 per share in Q3 2024[34] - The company repurchased an additional $300 million of shares in Q3, bringing the year-to-date total to $600 million[15] Market Performance - The Domestic Division's organic sales grew by 2.3%, while the International Division saw organic growth of 7.7%[5] - Consumer international sales for the three months ended September 30, 2025, were $290.1 million, an 8.4% increase from $267.7 million in the same period last year[38] - The specialty products division reported net sales of $75.8 million for the three months ended September 30, 2025, a 5.1% increase from $72.1 million in the prior year[38] - The company experienced a 5.5% growth in consumer international sales for the nine months ended September 30, 2025, compared to the same period in 2024[48] Future Outlook - Full-year reported sales growth for 2025 is now expected to be approximately 1.5%, up from a prior midpoint of 1.0%[19] - The adjusted gross margin is expected to contract by only 40 basis points versus 2024, improved from a prior expectation of 60 basis points[20] - Reported sales growth for the quarter ended December 31, 2025, was 3.5%[54] - Organic sales growth for the quarter was 1.5%[54] - Reported sales growth for the year ended December 31, 2025, was 1.5%[54] - Organic sales growth for the year was 1.0%[54] - Acquisition impact on sales growth was -3.6% for the quarter and -1.7% for the year[54] - Divestiture/Other contributed positively with 1.9% for the quarter and 1.1% for the year[54] - Foreign exchange (FX) impact was -0.3% for the quarter and 0.1% for the year[54]