Financial Data and Key Metrics Changes - Organic sales grew by 3.4%, exceeding the outlook of 1% to 2% [3][12] - Adjusted EPS was $0.81, which was $0.09 higher than the expected $0.72 [3][12] - Adjusted gross margin increased by 10 basis points to 45.1%, also exceeding expectations [12][13] - Reported revenue increased by 5% [12] Business Line Data and Key Metrics Changes - U.S. consumer business organic sales increased by 2.3%, with volume growth of 3.7% [4] - Touchland, the newly acquired brand, experienced double-digit growth in Q3, exceeding initial expectations [3][4] - ARM & HAMMER laundry detergent consumption grew by 1.9%, while the category remained flat [5] - THERABREATH mouthwash consumption grew by 17%, capturing a 21.8% market share [6] - International business delivered sales growth of 8.4%, with organic growth of 7.7% [9] Market Data and Key Metrics Changes - The overall market for the company's categories is growing at around 2% [2] - The international segment showed broad-based growth across many markets, particularly in Argentina [9][33] - The vitamin business is undergoing a strategic review due to declining sales [9] Company Strategy and Development Direction - The company is focused on maintaining a balanced mix of value and premium offerings to navigate the current economic environment [11] - There is an ongoing strategic review of the vitamin business, including potential divestitures and partnerships [9][10] - The company plans to invest more in marketing, expecting it to exceed 11% of net sales [10][15] Management's Comments on Operating Environment and Future Outlook - The macro environment remains volatile, with mixed consumer sentiment and high borrowing costs affecting discretionary spending [2] - Management expressed optimism about the growth potential of Touchland and the overall strength of their brands [3][11] - The company expects full-year adjusted EPS growth for 2025 to be $3.49, slightly higher than previous guidance [10][15] Other Important Information - The company repurchased $300 million of shares in Q3, totaling $600 million year-to-date [14] - Cash flow from operations increased by 19.6% to $435.5 million [14] Q&A Session Summary Question: Touchland's contribution to 2026 and vitamin business impact - Management confirmed Touchland is performing better than expected and will help offset potential losses from the vitamin business [21][23] Question: Competitive environment and promotional activity - Management noted that promotional spending in laundry was lower year-over-year, indicating a shift towards value [24][26] Question: International market momentum - Management reported strong excitement and growth potential in international markets, particularly in Argentina [33] Question: Share buybacks versus M&A priorities - Management emphasized a focus on M&A while remaining opportunistic with share buybacks [34] Question: Promotional environment and pricing strategy - Management clarified that negative price mix was influenced by promotional actions in the vitamin business and adjustments in pricing for BATISTE [38][39] Question: Touchland's performance across channels - Touchland is performing well primarily through Sephora, Ulta, and Amazon, with plans for further expansion [41][42] Question: Retailer inventory levels and future growth - Management indicated stable inventory levels in Q3 and expects balanced growth moving forward [77] Question: Commodity outlook and tariff guidance - Management reported significant progress in reducing tariff costs and expects a normal commodity inflation environment [79][80]

Core 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]

Core Viewpoint - Church & Dwight Co., Inc. (CHD) reported mixed first-quarter 2025 results, with adjusted earnings per share (EPS) beating estimates but net sales missing expectations, reflecting a challenging operating environment [1][2]. Financial Performance - Adjusted EPS for the quarter was 91 cents, surpassing the Zacks Consensus Estimate of 89 cents and the company's guidance of 90 cents, although it represented a 5.2% decline year over year [1]. - Net sales totaled $1,467.1 million, down 2.4% year over year, missing the Zacks Consensus Estimate of $1,511 million and the company's guidance for a nearly 1% increase [3]. - Organic sales decreased by 1.2%, driven by a 1.4% drop in volumes, partially offset by a 0.2% increase in pricing and mix [4]. Segment Analysis - **Consumer Domestic**: Net sales fell 3% to $1,129.8 million, with organic sales down 3% due to a 3.1% volume drop [6]. - **Consumer International**: Net sales increased by 2.7% to $261.9 million, with organic sales climbing 5.8%, driven by a 5.9% volume growth [7]. - **Specialty Products**: Sales declined 9.3% to $75.4 million, although organic sales grew by 3.2% [8]. Cost and Margin Insights - Gross margin contracted by 70 basis points to 45%, with adjusted gross margin at 45.1%, down 60 basis points year over year due to higher manufacturing costs [5]. - Marketing expenses decreased by $15.4 million year over year to $136.6 million, while adjusted selling, general, and administrative (SG&A) expenses increased by 40 basis points to 15.2% of net sales [5]. Future Outlook - For 2025, CHD projects organic sales growth of around 0-2%, down from a previous estimate of 3-4%, reflecting ongoing macroeconomic challenges [15]. - Adjusted EPS growth is now expected to be 0-2%, a reduction from the earlier guidance of 7-8% [17]. - The company anticipates a decline in organic sales of 2% for the second quarter, with adjusted EPS projected at 85 cents, a 9% decrease from the prior year [18].