Financial Data and Key Metrics Changes - The company reported a total revenue of approximately $6.1 billion, with 77% of sales coming from the U.S. and 18% from international markets [3][4] - The company aims for a steady stream of 4% organic volume growth, with specific targets of 3% for U.S. domestic, 8% for international, and 5% for the SPD business [52][54] - The company has achieved an average of over 4% growth over the past decade, with a focus on margin expansion of 25 to 50 basis points annually [54][56] Business Line Data and Key Metrics Changes - The Fabric Care business saw a growth rate of 1.4% in Q2, with ARM and HAMMER outpacing the category [12] - The Cat Litter category started at 2% growth and accelerated to 4%, with a year-to-date share growth [15] - The Hero Agne category maintained double-digit growth, increasing its market share from 1% in 2020 to 22% [20] - TheraBreath achieved a market share increase from 4% to 21% over five years, becoming the number two mouthwash brand [25] Market Data and Key Metrics Changes - International sales account for 18% of total sales, with a growth rate of 5.8% in the first half of the year [43] - The company has expanded its global footprint, with TheraBreath being the number one mouthwash in key retailers across several countries [36] - The e-commerce segment has grown significantly, now accounting for 23% of total sales, with five of the eight power brands increasing their online share [34][35] Company Strategy and Development Direction - The company is focused on innovation as a key growth driver, with half of its 4% growth in 2024 attributed to new product launches [37] - The acquisition of TouchLand is seen as a strategic move to enhance the company's portfolio, targeting the hand sanitizer market [30][32] - The company is committed to maintaining a balanced portfolio, with a focus on both premium and value segments [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite a volatile environment, emphasizing a balanced portfolio and share gains across brands [2][4] - The outlook for 2025 includes expectations of 0% to 2% organic sales growth and adjusted EPS growth of 0% to 2% [58] - Management highlighted the importance of managing tariffs and reducing exposure from $190 million to $50 million [61] Other Important Information - The company has a strong cash position with over $5 billion available for investments, including M&A opportunities [63] - The company is actively reviewing its brands and may divest underperforming segments to enhance shareholder value [60] Q&A Session Summary Question: Clarification on second quarter consumption expectations - Management confirmed that global organic growth was around 2.5%, with categories performing slightly better than expected [67][68] Question: Inquiry about M&A strategy and investment hurdles - Management stated that they are selective in M&A, focusing on long-term brand viability and typically aiming for around a 10x EBITDA multiple for acquisitions [71][73]

Financial Data and Key Metrics Changes - Church & Dwight reported a company size of approximately $6.1 billion, with 77% of sales in the U.S. and 18% internationally [3][4] - The company aims for 4% organic volume growth, with specific targets of 3% for U.S. domestic, 8% for international, and 5% for the SPD business [57][58] - The EPS growth outlook for 2025 is projected at 0% to 2%, with expectations of 2.5% organic growth in the second half of the year [63][64] Business Line Data and Key Metrics Changes - The Fabric Care business saw a growth rate of 1.4% in Q2, with ARM and HAMMER outpacing the category [13] - Cat litter performance improved from 2% to 4% growth, with a year-to-date share growth [16] - The Hero Agne category maintained double-digit growth, increasing its market share from 1% in 2020 to 22% [21] - TheraBreath achieved significant growth, becoming the number two mouthwash brand with a share increase from 4% to 21% over five years [25] Market Data and Key Metrics Changes - International sales account for 18% of total sales, with a growth rate of 5.8% in the first half of the year [47] - The e-commerce segment has grown significantly, now representing 23% of total sales, up from 22% in 2016 [33] - The company has expanded its global footprint, with TheraBreath being the number one mouthwash in key retailers across multiple countries [35] Company Strategy and Development Direction - The company focuses on a balanced portfolio, with eight power brands contributing to 75% of sales and profits [4] - The Evergreen Model guides the company's strategy, emphasizing consistent growth, margin expansion, and marketing investments [56][60] - Recent acquisitions, including TouchLand, are aimed at enhancing the product portfolio and driving growth [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite a volatile environment, highlighting share gains across many brands [2][3] - The company remains focused on what it can control, including managing tariffs and investing in innovation [62][67] - The management reiterated confidence in achieving sales growth and maintaining a strong balance sheet with over $5 billion available for investments [69][70] Other Important Information - The company has divested from underperforming brands and is focusing on revitalizing its vitamin business [65][66] - Gross margin pressures from tariffs have been reduced from $190 million to $50 million through action plans [67] Q&A Session Summary Question: Clarification on second quarter consumption expectations - Management clarified that the 2.5% growth is based on global organic growth, with categories performing at expected levels [72][73] Question: Inquiry about M&A interests and return on investment hurdles - Management explained their unique approach to M&A, emphasizing a focus on long-term brand viability and a typical EBITDA multiple target of around 10x [77][79]

Business Segments & Portfolio - Church & Dwight's domestic segment accounts for 77% of its business, while international contributes 18%, and the Specialty Products Division (SPD) makes up 5%[11] - In 2024, Church & Dwight's total company net sales were approximately $6.1 billion[12] - Approximately 75% of Church & Dwight's sales and profits are represented by 8 power brands[15] - In 2024, Church & Dwight's portfolio was divided into Household (49%), Personal Care (46%), and SPD (5%)[16] - Church & Dwight's product portfolio consists of 36% value products and 64% premium products[18] Brand Performance & Market Share - In the liquid laundry detergent category, Arm & Hammer experienced a 3.4% increase in dollar sales in Q1 2025 and a 3.1% increase in Q2 2025, compared to category growth of 0.2% and 1.4% respectively[45] - Arm & Hammer's liquid laundry dollar share has grown from 5% in 2006 to 14.8% YTD 2025[48] - In the clumping litter category, Arm & Hammer litter saw a 2.1% increase in dollar sales in Q1 2025 and a 4.1% increase in Q2 2025, compared to category growth of 2.3% and 3.4% respectively[57] - Arm & Hammer litter's dollar share has consistently increased from 23.2% in 2020 to 24.7% YTD 2025[59] - Hero acne brand experienced a 13% increase in dollar sales in Q1 2025 and an 11.4% increase in Q2 2025, compared to category declines of -1.2% and growth of 1.7% respectively[65] - Hero's total acne dollar share has grown from 1.2% in 2020 to 21.8% YTD 2025, making it the 1 acne brand[68] - TheraBreath mouthwash experienced a 26.2% increase in dollar sales in Q1 2025 and a 22.5% increase in Q2 2025, compared to category declines of -0.5% and -1.6% respectively[81] - TheraBreath's total mouthwash dollar share has grown from 3.9% in 2020 to 20.7% YTD 2025, achieving an all-time share high and becoming the 2 mouthwash brand[84] - Batiste dry shampoo experienced a -4.9% decrease in dollar sales in Q1 2025 and a -6.9% decrease in Q2 2025, compared to category growth of 2.7% and 6.8% respectively[97] - Batiste's dry shampoo dollar share has grown from 36.7% in 2020 to 41.9% YTD 2025, maintaining its position as the 1 dry shampoo brand[98] Financial Performance & Outlook - The company's evergreen model targets include +4% organic sales growth, +25 to +50 bps gross margin improvement, flat % but higher $ marketing spend, -25 to 0 bps SG&A reduction, +50 bps operating margin improvement, and +8% EPS growth[181] - The company's financial outlook for FY 2025 (as of August 1, 2025) includes 0% to +2% organic sales growth, -60 bps adjusted gross margin, ~11% marketing %, lower adjusted SG&A, ~23% effective tax rate, 0% to +2% adjusted EPS growth, and ~$1.05 billion cash from operations[200] - The company anticipates a ~$190 million impact from tariffs, with ~$50 million in mitigating actions[204] - The company's acquisition power is approximately $5.3 billion[214]

CHURCH & DWIGHT CO., INC. CHURCH & DWIGHT CO., INC. dbAccess Global Consumer Conference 2025 SAFE HARBOR STATEMENT 2 CHURCH & DWIGHT CO., INC. We Remain Confident in our Future Despite a Volatile Environment This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth, the impact of the Touchland acquisition; the intended benefits of the exploration of strategic alternatives; gross margin changes; trade and marketing spending; marketing ...

Summary of Conference Call Company Overview - The company is known for its ARM and HAMMER brand, which has been a core part of its identity since its founding in 1846. The brand spans multiple categories including personal care, household products, cat litter, water detergent, and toothpaste [1][2][3]. Financial Performance - The ARM and HAMMER brand has grown from $1 billion to $2 billion, achieving a mid-single-digit CAGR over many years [2]. - The company has a total portfolio worth $6 billion, with $2 billion from ARM and HAMMER and $4 billion from other brands [3]. - Categories have shown resilience, with growth rates of 4.5% in early 2024 and 2.5% in the latter half of the year [4][5]. Market Dynamics - Consumer confidence has improved, leading to positive growth in April and May 2024 after a negative start to the year [6]. - The company has gained market share in various categories, with two-thirds of its portfolio gaining share over the past decade [7]. - The laundry detergent category has seen a share increase to 14.7%, up from 5% over the years [8]. Innovations and Acquisitions - The company has introduced a "good, better, best" strategy for its laundry products, enhancing its competitive edge [9]. - Recent acquisitions include Touchland, a hand sanitizer brand, purchased for $700 million plus an earn-out of $180 million, expected to close soon [17][18]. - Touchland is positioned to become the company's eighth power brand, with a focus on enhancing consumer experience through premium products [19]. International Expansion - International sales account for 18% of total revenue, with a goal of 8% organic growth year-on-year [27][28]. - The company has expanded its global footprint, recently entering Japan and aiming to grow its presence in over 50 countries [31][32]. - The international division has a strong track record of high single-digit growth, indicating significant potential for future expansion [30]. Specialty Products Division - The Specialty Products division aims for 5% organic growth, focusing on animal nutrition, performance products, and commercial applications [35]. - Nearly 30% of the animal nutrition sales now come from non-U.S. markets, highlighting the division's international focus [36]. Financial Strategy - The company targets 4% organic growth overall, with specific targets of 3% in the U.S., 8% internationally, and 5% for the Specialty Products division [39]. - Gross margin expansion is a key focus, with efforts to improve margins by 25 to 50 basis points annually [41]. - The company has a strong cash flow position, with $1 billion in cash from operations and significant acquisition capacity of over $5.5 billion [50]. Challenges and Outlook - The company has faced challenges from inflation and tariffs, leading to a projected adjusted EPS growth of 0% to 2% for 2025 [46][48]. - Despite these challenges, the company remains optimistic about its growth trajectory, particularly in innovation and international markets [53]. Key Takeaways - The ARM and HAMMER brand continues to perform well across various categories, with a strong focus on innovation and market share growth. - Recent acquisitions and international expansion are expected to drive future growth. - The company maintains a disciplined approach to M&A, focusing on asset-light acquisitions that enhance its portfolio [99][101].