Core Insights - Church & Dwight Co., Inc. reported stronger than expected sales and earnings growth for the full year 2025, with net sales increasing by 1.6% to $6,203.2 million, surpassing the company's outlook of 1.5% growth [1] - The company achieved organic sales growth of 0.7%, despite challenges from exiting the VMS business and a slowdown in category growth [1][3] - The CEO highlighted the company's balanced portfolio and focus on execution, which contributed to market share gains and strong cash flow generation [2] Financial Performance - Full-year EPS was $3.02, reflecting a 27.4% increase from 2024, while adjusted EPS rose by 2.6% to $3.53, exceeding the company's outlook [5] - Q4 net sales reached $1,644.2 million, a 3.9% increase compared to Q4 2024, surpassing the company's 3.5% outlook [6] - Reported gross margin contracted by 100 basis points, but adjusted gross margin remained steady at 45.2% due to productivity and volume offsets [4] Segment Performance - Domestic division organic sales declined by 0.5%, while international division organic sales grew by 5.5%, driven by share gains across subsidiaries [3] - Specialty Products division saw organic sales growth of 2.6% [3] - Consumer Domestic net sales increased by 3.7% to $1,271.2 million, while Consumer International net sales rose by 5.2% to $299.8 million [7][8] Strategic Actions - The company exited its VMS, FLAWLESS™, SPINBRUSH™, and WATERPIK™ businesses to focus on faster-growing product lines [3] - A one-time after-tax charge of $45.6 million was incurred in Q4 due to the VMS exit, which represented less than 5% of the company's 2025 net sales [19] - The company repurchased $900 million in shares during 2025, indicating a strong commitment to returning value to shareholders [17] Cash Flow and Capital Management - Cash from operations for 2025 was $1.2 billion, an increase of $59.2 million from the previous year, with capital expenditures of $122.4 million [15] - As of December 31, 2025, total debt was $2.2 billion, and cash on hand was $409 million, providing robust liquidity for future growth opportunities [16] Dividend and Future Outlook - The Board of Directors declared a 4.2% increase in the quarterly dividend, marking the 30th consecutive year of dividend increases [21] - For 2026, the company expects volume-driven organic sales growth of approximately 3% to 4%, with reported sales anticipated to decline due to exited businesses [31] - The company plans to focus on innovation and brand support to drive future growth, with new product launches expected to contribute significantly to organic growth [30][34]