Church & Dwight(US:CHD)2025-10-31 17:59Financial Performance - Net sales for Q3 2025 reached $1,585.6 million, a 4.9% increase from $1,510.6 million in Q3 2024[9] - Net income for Q3 2025 was $182.2 million, compared to a net loss of $75.1 million in Q3 2024, marking a significant turnaround[10] - The company reported a comprehensive income of $180.6 million for Q3 2025, compared to a loss of $64.2 million in Q3 2024[10] - Net income for the third quarter of 2025 is $182.2 million, compared to $220.1 million in the same period of 2024, reflecting a decrease of approximately 17.3%[24] - Net income for the nine months ended September 30, 2025, was $593.3 million, a significant increase of 49.7% compared to $396.1 million for the same period in 2024[14] - Net income for the first nine months of 2025 was $191.0 million, compared to $220.1 million in the same period of 2024, reflecting a decrease of approximately 13.2%[19] Revenue and Sales - Net sales for the first nine months of 2025 reached $4,559.0 million, a slight increase from $4,525.1 million in the same period of 2024, representing a growth of 0.75%[92] - Total consumer domestic net sales for the first nine months of 2025 were $3,503.6 million, nearly unchanged from $3,506.6 million in 2024[95] - Total consumer international net sales increased to $829.6 million in the first nine months of 2025, compared to $786.4 million in 2024, showing a growth of 5.5%[95] - The Consumer Domestic segment generated net sales of $1,219.7 million for the three months ended September 30, 2025, compared to $1,170.8 million in 2024, reflecting a growth of 4.2%[91] Profitability - Gross profit for the nine months ended September 30, 2025, was $2,021.0 million, down 2.9% from $2,082.2 million in the same period of 2024[9] - The gross profit for the three months ended September 30, 2025, was $714.4 million, compared to $683.1 million for the same period in 2024, indicating an increase of about 4.6%[91] - Income from operations for the first nine months of 2025 increased to $811.6 million, compared to $550.4 million in 2024, reflecting a significant increase of 47.5%[92] - The Company reported an income from operations of $254.6 million for the three months ended September 30, 2025, compared to a loss of $91.5 million in 2024[91] Expenses - Marketing expenses rose to $202.9 million in Q3 2025, up from $185.8 million in Q3 2024, reflecting increased investment in brand promotion[9] - Research and development expenses for the first nine months of 2025 amount to $104.8 million, up from $99.1 million in the same period of 2024, indicating an increase of approximately 7.3%[24] - Marketing expenses for the first nine months of 2025 totaled $496.6 million, slightly higher than $490.2 million in 2024, marking an increase of 1%[92] - Research and Development expenses for the three months ended September 30, 2025, totaled $36.2 million, consistent with $36.0 million in the same period of 2024[91] Cash and Liquidity - Cash and cash equivalents decreased to $305.3 million as of September 30, 2025, from $964.1 million at the end of 2024[12] - The company reported a net cash provided by operating activities of $852.0 million for the nine months ended September 30, 2025, slightly down from $863.9 million in the prior year[14] - Cash used in investing activities surged to $725.3 million in the nine months ended September 30, 2025, compared to $138.1 million in the same period of 2024, indicating a significant increase in investment activity[14] - The company paid cash dividends totaling $216.4 million during the nine months ended September 30, 2025, compared to $207.4 million in the same period of 2024, reflecting a 4.3% increase[15] Assets and Liabilities - Total assets increased to $9,144.4 million as of September 30, 2025, compared to $8,883.1 million at the end of 2024[12] - Total current liabilities rose to $1,501.1 million as of September 30, 2025, compared to $1,315.9 million at the end of 2024, marking an increase of 14.1%[12] - Long-term debt remained stable at $2,204.5 million as of September 30, 2025, compared to $2,204.6 million reported on December 31, 2024[12] - The company reported a total stockholders' equity of $4,223.0 million as of September 30, 2025, a decrease from $4,360.8 million on December 31, 2024, indicating a decline of 3.1%[12] Acquisitions and Investments - The company incurred $656.4 million in acquisitions during the nine months ended September 30, 2025, compared to $19.9 million in the same period of 2024[14] - The Touchland Acquisition was completed on July 16, 2025, for a total payment of $656.4 million, with potential additional consideration of up to $180.0 million based on 2025 net sales thresholds[53] - The fair value of the Touchland business acquisition liability was adjusted to $147.0 million as of September 30, 2025, based on revised net sales forecasts[48] - The Company acquired Graphico, Inc. for a cash purchase price of $19.9 million, with annual net sales of approximately $38.0 million for the year ended December 31, 2023[56] Stock and Shareholder Information - Cash dividends per share increased to $0.30 in Q3 2025 from $0.28 in Q3 2024[9] - The Company has $528.9 million remaining for share repurchases under the 2021 Share Repurchase Program as of September 30, 2025[43] - An accelerated share repurchase (ASR) contract was executed in May 2025, resulting in the purchase of 3.1 million shares at an average total share price of $95.71[44] - The company granted 143,260 Restricted Stock Units (RSUs) with a total fair value of $15.0 million during the nine months ended September 30, 2025, compared to 105,600 RSUs valued at $10.8 million in 2024[36] Impairments and Charges - The company recorded a pre-tax charge of $51.0 million in Q2 2025 due to the exit from the Flawless, Spinbrush, and Waterpik showerhead businesses, which generated approximately $170 million in net sales in 2024[61] - The impairment charges related to the VMS business totaled $357.1 million, including $281.3 million for the trade name and $60.0 million for property, plant, and equipment[66] - The company reported $30.4 million in non-cash charges related to impairments of fixed assets in the first nine months of 2025 due to exiting certain business lines[94] Other Financial Metrics - The carrying amount of goodwill increased to $2,641.0 million as of September 30, 2025, from $2,433.2 million on December 31, 2024, following the acquisition of Touchland[71] - The carrying value of amortizable intangible assets as of September 30, 2025, is $1,873.2 million, down from $1,209.1 million on December 31, 2024, reflecting a total impairment charge of $12.3 million[68] - Intangible amortization expense for Q3 2025 was $32.7 million, compared to $30.7 million in Q3 2024, with a projected total of approximately $121.0 million for 2025[70]