Church & Dwight(CHD) - 2025 Q4 - Annual Report

Acquisitions and Divestitures - The company completed the acquisition of Touchland Holding Corp for $656.0 million, with an additional payment of $159.0 million based on 2025 net sales thresholds[20]. - The company announced the exit from the Flawless, Spinbrush, and Waterpik showerhead businesses, which generated approximately $118.0 million in annual net sales in 2025, resulting in a pre-tax charge of $45.6 million[21]. - The divestiture of the VitaFusion and L'il Critters brands was completed on December 31, 2025, with a one-time pre-tax charge of $58.5 million incurred in the fourth quarter[22][23]. Sales and Revenue Breakdown - Household products accounted for approximately 54% of Consumer Domestic sales and 41% of consolidated net sales in 2025[25]. - Personal care products represented approximately 46% of Consumer Domestic sales and 36% of consolidated net sales in 2025[28]. - Total Consumer International net sales constituted about 18% of consolidated net sales in 2025, with no product line exceeding 20% of total international net sales[32]. - The Specialty Products Division accounted for approximately 5% of consolidated net sales in 2025[35]. Supply Chain and Raw Materials - The company has increased qualified dual sources of materials to approximately 70% of total spend on direct materials to enhance supply chain resilience[50]. - The cost of raw materials, including surfactants and oil-based materials, increased modestly in 2025 compared to 2024, potentially impacting financial results if costs cannot be passed to customers[51]. - The company has adequate trona reserves to support sodium bicarbonate production for the foreseeable future, sourced primarily from its Green River, Wyoming plant[48]. - The partnership with Tata Chemicals for soda ash supply allows the company to achieve economies of scale in sodium bicarbonate production[49]. Regulatory Compliance - Regulatory compliance is critical, with products subject to oversight by agencies such as the FDA and EPA, impacting manufacturing and marketing practices[56]. - The company markets over-the-counter pharmaceutical products that must comply with FDA regulations, including the OTC monograph system[65]. - The company is subject to various international quality system regulations, ensuring compliance with cGMP requirements for medical devices and OTC pharmaceuticals[72]. - The company is actively monitoring changes in regulations that could impact its dietary supplements and OTC products, particularly under the FDA's updated monograph system[65]. Workforce and Employee Engagement - As of December 31, 2025, the company had approximately 5,550 global employees, a decrease of about 200 compared to December 31, 2024[87]. - The overall turnover rate for fiscal 2025 was approximately 17%[87]. - Revenue per employee in fiscal 2025 was approximately $1.12 million[87]. - In 2025, the Employee Giving Fund provided approximately $1.3 million in contributions to 224 community organizations[95]. - The Church and Dwight Philanthropic Foundation awarded grants totaling approximately $1.1 million to ten organizations in 2025[96]. - The company emphasizes employee safety and wellness, ensuring compliance with OSHA standards[86]. - Approximately 85% of the workforce is located in the Americas, 11% in Europe, Middle East, and Africa, and 4% in the Asia-Pacific region[87]. - The company launched several Employee Resource Groups (ERGs) in 2023 to promote diversity and inclusion[90]. - The company invests in professional development and growth to improve employee performance and retention[92]. - The company offers competitive salaries and a range of benefits, including health insurance and retirement plans[93]. Competitive Landscape - The competitive landscape includes major players like Procter & Gamble, Clorox, and Colgate-Palmolive, with significant pricing pressures from retail customers[41][42]. - The company's largest customer, Walmart Inc., accounted for approximately 23% of consolidated net sales for the years ended December 31, 2025, 2024, and 2023[55]. - The competitive environment includes significant pricing pressure from retail customers, particularly high-volume retailers, impacting margins[42].