Core Viewpoint - Church & Dwight has demonstrated consistent growth by leveraging a balanced portfolio and recent acquisitions, aiming to deliver strong shareholder returns [2]. Company Overview - Church & Dwight is represented by Rick Dierker, President and CEO, and Lee McChesney, CFO, who joined the company last year [1]. - The company is recognized for its efficiency in presentations, humorously noted for potentially winning an Olympic category for quickly navigating through extensive slides [2]. Growth Strategy - The company continues to drive growth despite market volatility by utilizing its balanced portfolio and integrating recent acquisitions to create more growth opportunities [2].

Church & Dwight (NYSE:CHD) 2026 Conference February 18, 2026 08:00 AM ET Company ParticipantsLee McChesney - CFORick Dierker - President and CEOConference Call ParticipantsNone - AnalystModeratorMorning, everyone. Welcome to the second day of CAGNY. To start us off today, we have Church & Dwight. Let's first thank Church for sponsoring this morning's tasty breakfast and for their long-standing support of CAGNY. Joining us today from Church & Dwight are Rick Dierker, President and CEO, and Lee McChesney, CFO ...

CAGNY 2026 SAFE HARBOR STATEMENT This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending inflation; sufficiency of cash flows from operations; earnings per share; cost savings programs; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact ...

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].

Group 1 - Church & Dwight Co., Inc. will present at the 2026 Consumer Analyst Group of New York (CAGNY) Conference on February 18, 2026, at 8:00 AM EST, with a webcast available on the company's website [1] - The company is a leading U.S. producer of sodium bicarbonate and offers a wide range of personal care, household, and specialty products under well-known brands such as ARM & HAMMER®, TROJAN®, and OXICLEAN® [1] - For the full year 2025, Church & Dwight reported net sales of $6,203.2 million, reflecting a 1.6% increase, surpassing the company's outlook of 1.5% growth [1] Group 2 - Organic sales for 2025 grew by 0.7%, despite a 130 basis points impact from the decline in the exited VMS business and a slowdown in category growth [1] - The company has completed a strategic review of its vitamin, minerals, and supplement (VMS) business and announced the sale of the VitaFusion® and L'il Critters® brands to Piping Rock Health Products, Inc. [1]

Core Viewpoint - Church & Dwight Co. (CHD) was previously assigned a hold rating due to its high valuation multiple and challenges in accelerating growth, but recent international execution improvements may indicate a shift in outlook [1] Group 1: Company Performance - The company has faced challenges in achieving accelerated growth, which contributed to the initial hold rating [1] - Recent developments suggest that international execution has improved, potentially impacting future growth prospects positively [1] Group 2: Investment Strategy - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality companies at a discount to their intrinsic value [1]

Core Viewpoint - The company expresses optimism about its future, highlighting strong momentum as it concludes the year and looks ahead to 2026 [1]. Presentation Overview - The presentation consists of 170 slides, indicating a comprehensive overview of the company's performance and future outlook [1]. - The management team will participate in the presentation, suggesting a collaborative approach to sharing insights [2].

Core Viewpoint - The consumer goods industry is currently facing significant challenges due to consumer uncertainty regarding the economic outlook, leading to a reluctance to stock up on everyday items like toothpaste and dishwashing liquid [2][8]. Group 1: Company Performance - Colgate's CEO Noel Wallace indicated that the company does not expect a significant improvement in the U.S. economy in the coming quarters, despite a slight anticipated improvement in trends [9]. - Colgate has provided a broader performance outlook for the next year, expecting sales growth of 2% to 6% and organic sales growth of 1% to 4%. Analysts predict that the company's sales will reach approximately $21 billion by 2026, reflecting a 3% increase from last year [9]. - In the latest quarter, Colgate reported a 5.8% year-over-year sales increase, reaching $5.23 billion, surpassing Wall Street's expectations of $5.12 billion, primarily due to price increases offsetting flat sales volume [10]. Group 2: Financial Insights - Excluding a $794 million impairment charge related to its skin health business, Colgate's earnings per share were $0.95, exceeding analyst expectations of $0.91 [12]. - The company experienced a loss in the latest quarter, primarily due to the impairment charge, as the growth rate of the affected product category was below expectations [11]. Group 3: Strategic Initiatives - Colgate's new growth strategy aims to leverage artificial intelligence and automation to accelerate product development, optimize marketing for new and existing products, and respond more quickly to changes in consumer demand [10]. - The company is also implementing operational streamlining and cost-reduction measures to increase investments in faster-growing emerging markets [10].

Core Viewpoint - Church & Dwight reported strong fourth-quarter earnings that surpassed analyst expectations, leading to a 4% increase in share price intraday [1] Financial Performance - Adjusted earnings per share were $0.86, exceeding the consensus estimate of $0.84 [1] - Revenue reached $1.64 billion, aligning with expectations and reflecting a year-over-year increase of 3.9% [1] - Organic sales grew by 0.7%, improving to 1.8% when excluding the divested vitamin business [1] Margin and Cost Management - Adjusted gross margin expanded by 90 basis points to 45.5%, outperforming expectations [2] - Margin improvement was attributed to productivity initiatives, higher volumes, and a favorable product mix, which countered inflationary and tariff-related pressures [2] Strategic Decisions - The company completed the sale of its vitamin brands VITAFUSION and L'IL CRITTERS, incurring a one-time after-tax charge of $45.6 million [3] - The board approved a 4.2% increase in the quarterly dividend to $0.3075 per share, marking the 30th consecutive year of dividend growth [3] Future Outlook - For 2026, the company forecasts organic sales growth of 3% to 4% and adjusted EPS growth of 5% to 8% [4] - For the first quarter of 2026, organic sales growth is projected at approximately 3%, with adjusted EPS expected to be $0.92, slightly higher than the previous year [4]

Church & Dwight (NYSE:CHD) 2026 Earnings Call Summary Company Overview - Church & Dwight is a $6.2 billion company with 77% of sales from domestic markets, 18% from international, and 5% from specialty products division (SPD) [5][6] - The company has a balanced portfolio, with 75% of sales and profits coming from seven key brands [5][6] Financial Performance - In Q4 2025, total sales grew by 3.9%, exceeding expectations, with organic growth at 0.7% [17][20] - Excluding the vitamins and minerals supplement (VMS) business, organic sales growth was 1.8% [18][20] - Gross margin improved by 90 basis points year-over-year, leading to an EPS of $0.86, a 12% increase from the previous year [18][20] - For the full year 2025, total sales were $1.6 billion, with organic growth adjusted to 2% after excluding VMS [20][21] - Cash flow for the year was strong at $1.2 billion, allowing for shareholder returns of $900 million [21][23] Strategic Initiatives - The company is focused on three growth pillars: growing core brands, expanding into new categories, and enhancing international presence [8][9][16] - The Evergreen Model is central to the company's strategy, aiming for 3%-4% organic growth in 2026, with reported sales expected to decline slightly due to business exits [24][27] - Gross margin is projected to improve by 100 basis points in 2026, with continued investment in marketing at 11% of sales [24][30] Brand Performance and Growth Strategies - **Arm & Hammer**: Targeting growth from $2 billion to $3 billion, leveraging its strong market position in laundry and cat litter [8][39] - Achieved a record share of 14.5% in laundry detergent, with a focus on value offerings [40][41] - Plans to expand in lightweight cat litter, where it currently holds an 8.5% share [41] - **TheraBreath**: Aiming to become the number one mouthwash brand, currently holding a 22% market share [47] - Plans to launch a new toothpaste product, tapping into a $4 billion category [48] - **Hero**: The acne brand grew at three times the category rate, with a focus on expanding its product line [54][56] - **Batiste**: Despite a decline in 2025, the brand remains a leader and will focus on innovation and revitalization efforts [57][59] Acquisitions and Portfolio Management - The acquisition of Touchland has been a significant driver of growth, with plans to expand its product offerings [23][63] - The company has divested from lower-performing brands, such as Spinbrush and vitamins, to focus on higher-margin products [3][22] Market Challenges and Consumer Sentiment - The overall market has seen deceleration, with consumer confidence at five-year lows, impacting category growth [7][8] - The company is adapting to these challenges by focusing on internal growth strategies and maintaining a strong balance sheet [3][22] Conclusion - Church & Dwight is optimistic about its future, with a strong focus on innovation, brand strength, and strategic acquisitions to drive growth in 2026 and beyond [39][37]