Church & Dwight (CHD) Q3 2025 Earnings Transcript

Core Insights - The company reported a strong third quarter with adjusted EPS of $0.81, a 2% increase from the previous year, driven by higher volume and gross margin results [4] - Cash flow from operations increased by 19.6% year-over-year to $435.5 million, and the company repurchased $300 million in shares, totaling $600 million year-to-date [1][9] - The outlook for reported sales growth for the year has been revised to approximately 1.5%, up from a previous estimate of 1.0% [6] Financial Performance - The adjusted tax rate decreased to 21.6% from 23.3% year-over-year, with an expected adjusted effective tax rate of 22.5% for the year [1] - Reported revenue increased by 5%, with organic sales up 3.4%, indicating broad-based growth across global markets [4] - Adjusted SG&A expenses increased by 20 basis points year-over-year, while marketing expenses as a percentage of sales rose to 12.8% [3] Strategic Initiatives - The company has made strategic choices to exit certain brands and has successfully acquired Touchland, which is performing better than expected [9] - Marketing investments are set to increase due to a stronger sales and gross margin outlook, with a target to exceed 11% of net sales for the year [6][7] - The company expects to maintain a focus on M&A opportunities while balancing share repurchases [17] Outlook and Guidance - For the fourth quarter, the company anticipates reported sales growth of approximately 0.5% and organic sales growth of about 1.5%, with a noted decline in sales from discontinued product lines [7][8] - The adjusted EPS for Q4 is expected to be $0.83, reflecting a 0.8% increase compared to the previous year [8] - The full-year gross margin is now expected to contract by only 40 basis points versus 2024, an improvement from earlier forecasts [6]