Church & Dwight(US:CHD) ZACKSยท2025-08-04 16:56Core Insights - Church & Dwight Co., Inc. (CHD) reported second-quarter 2025 results with both net sales and earnings exceeding the Zacks Consensus Estimate, despite a year-over-year decline in net sales [1][9] - Adjusted earnings per share (EPS) for the quarter was 94 cents, surpassing the estimate of 85 cents and reflecting a 1% increase from the previous year [1][9] Financial Performance - Net sales totaled $1,506.3 million, a decrease of 0.3% year over year, but above the Zacks Consensus Estimate of $1,480 million [2] - Organic sales increased by 0.1%, driven by a 0.8% rise in volume, which was partially offset by a 0.7% decline in pricing and product mix [2][9] - Gross margin contracted by 410 basis points to 43%, with an adjusted gross margin of 45%, down 40 basis points year over year due to higher manufacturing costs and product mix issues [3][9] Segment Performance - Consumer Domestic segment net sales fell 1.4% to $1,154.1 million, with organic sales declining by 1% [5] - Consumer International segment saw a 5.3% increase in net sales to $277.6 million, with organic sales climbing 4.8% [6] - Specialty Products segment experienced a 3% decline in sales to $74.6 million, although organic sales grew by 0.1% [7] Financial Health - The company ended the quarter with cash and cash equivalents of $923.2 million and long-term debt of $2,205.8 million [8] - Cash from operations for the first half of 2025 was $416.5 million, with capital expenditures amounting to $39 million [8] Future Outlook - For 2025, CHD anticipates organic sales growth of around 0-2%, influenced by the Touchland acquisition and the impact of exiting certain businesses [11] - The company expects a full-year reported gross margin of 44%, with adjusted gross margin projected to contract by 60 basis points compared to 2024 [12] - Marketing expenses as a percentage of sales are expected to be approximately 11%, reflecting continued investment in brands and innovation [12][13]