Church & Dwight Co., Inc. (CHD) on Q4 2025 Results - Earnings Call Transcript

Matt Farrell: Good morning, everybody. Thanks for coming today. This is the 2025 Analyst Day for Church & Dwight. We got a big crowd with us today. We got the entire management team. We got a couple of casualties due to the flu that's going around. So let's begin with the safe harbor statement. I encourage everybody to read that, after class. I'm going to here's a list of the people who are going to be here today, all the presenters. We've got Shitij Chabba from SPD. We've got Mike Read from International. We've got Surabhi Pokhriyal our Chief Digital Officer. It's the Rick and Matt show as usual. We got Stacey Ramstedt, who's our CMO, and Carlos Linares. You haven't heard from Carlos in the past. He leads R&D and Innovation for the company. Alright. Long agenda here. I won't read it to you, so let's, kind of jump right in. But I'm going to start with 2025 is the 35th anniversary of Church & Dwight being listed on the New York Stock Exchange. And you can see the chart there, if you adjust for stock splits, was a buck a share down back in 1990, and you can see we're well over a $100 today. Here's kind of a fun fact. So if you invested $1,000 in Church & Dwight in 1990 when it was first listed, it'd be worth a $114,000 today. So that's kind of a mark of a consistent company. And, the fellow on the lower left is Dwight Minton. Dwight Minton became the CEO, I think in 1969. He is the -- a descendant of Austin Church, of the Church & Dwight fame. So he's the last family member of the company to take to be a CEO and he succeeded his dad who was CEO before him. So I'm the third non-family member who's CEO of Church & Dwight, and Rick will be the fourth. So fun fact. So look at -- let's look back at 2024. As you all know if you've been following our story, organic sales growth, we beat our algorithm all three businesses U.S., International, and SPD. We have seven power brands represent 70% of our revenues and profits and 507 increased their market share. Our algorithm for our marketing spend is spent about 11% annually. And we spent over 11 in 2024. Innovation, it's a big number for us this past year. So if we grew our organic growth 4% on a full year basis, half of that came from new products that we launched in 2024 and that's incremental growth year-over-year came from new products and then online sales, we've been a bit of a standout among CPG companies for quite a few years. Our online sales are is over 21%, it's 21.4% for total company. What that translates to -- is if you have $6 billion in sales, we got $1.3 billion of that is ordered online. A few more things, we bought HERO a couple years ago. That's been a great brand for us. We've expanded that, it's now launched in 40 countries, and now our job is to grow that brand in those 40 countries around the world. Japan, it's a big market, over a 100 million consumers we acquired a terrific distributor of ours in Japan. It as a distributor that drove OXICLEAN to the number one pre-wash additive in powder in Japan. SPD, you're going to hear from Shitij Chabba today. And that's now perennial grower for us. I'm going to hear more about that. We generate a lot of cash as a company, and we're [$1 billion] for 2024. And we got a lot of dough on a balance sheet. Almost a billion dollars of cash at year-end. And we're all dressed up to buy some businesses going forward. All right, strong performance this is the 1, 2, 3, 5, and 10 year chart for us. And this give you an idea of the consistency of this company for many, many years, and it's really attributed to the culture and to the management team of Church & Dwight. Now, who we are, many of you are long-term holders. People who are here today are listening on the phone. I'm going to run through things that should be very familiar to you. So the way we're split is 77% domestic, 18% international. For a long time, that international number was 17%, almost since I joined the company. So we're starting to grow that one to move faster. Seven power brands that make up 70% of our revenues and profits. And we have an evergreen model. So this evergreen model is something that guides our view long-term, not just for the coming year, but three years, five years, 10 years. This is what we try to drive, how we try to drive TSR for our shareholders. So you see the 4% organic sales growth, it's 385, domestic international SPD, our gross margin, 25 to 50 basis points, the bright line for marketing is around 11% of sales. We try to get leverage on SG&A. So we try to go grow the top line faster than SG&A grows, and we're trying to expand our operating margins 50 basis points annually, and that translates into 8% EPS growth. So here's the formula. Five things I'm going to cover. One, we got a balanced and diversified portfolio, so we got pretty much balanced between household and personal care. And SPD is essentially the foundational business for the company. It's where the ARM & HAMMER brand first arose. We're split pretty much 60/40 or I should say two-thirds, one-thirds between premium and value. Why is that important? It's what important because we perform well in just about any economic environment. We don't have a lot of exposure to private label. You can see that a little bit over 10%. That's been true for many, many years. Any e-commerce has been a great story for us. We were probably fourth quartile back in 2016, and now we're first quartile with respect to our performance online. And as I said earlier, half of our growth, organic growth in 2024 came from new products. And of course, that is so important to the equity of your brands is new innovation. So, that speaks really well for the company, and we got a lot more coming in 2025. As far as acquisitions go, we're pretty strict about what we're going to buy. Got to be a number one or number two brand. It has to be a gross margin that's at or above the gross margins for the company. We like businesses that are asset light. Prefer to buy a business that is that is co-manufactured, that we don't necessarily have to buy a plant. Number four would be, can we get synergies? We've got a very, very sophisticated supply chain to make damn near anything. So, consequently, we try to get leverage in manufacturing or logistics. And then finally, it's got to have a long-term competitive advantage, meaning we don't buy something that's just going to be successful for the next two or three years. It's going to be successful 5 years, 10 years out. All right. Long history of growth through acquisitions. So, if you look at 2004, we were a $1.5 billion company. You can see almost every year we've acquired a business. We don't have every year up there, but just about every year we've acquired something. 2023 and 2024, bit of a drought. I'd say if you say when did have you had a drought before, if you look at 2008, we acquired ORAJEL. 2012, we acquired the vitamin business. Between then, we bought some small businesses. But I would say that was the time -- last time we had a drought of a couple of years, not for lack of trying though. So now Rick's going to come up and take you through a few more details. Rick Dierker: All right. Thank you, Matt. So, this is probably one of the last times I'm going to go through detailed financials with you guys. Okay. Q4 2024, we ended the year with momentum, right? We had 3.5% reported sales growth. Our outlook was 1.5% to 2.5%. It came in better than we expected. Our share gains for the quarter 5.07%, or for the year 5.07% of our brands grew share, right? Those are the important brands that are driving the company. 4.2% organic came in better than we thought too. 2% to 3% was our outlook. Gross margin came right where we thought it was. We called 110 basis points for the full year, and that implied flat for the quarter. And then for EPS, we were up almost 19%. So, just really strong ending to the year and the quarter. So, for the full year, 4% net sales growth, 4.5% organic sales growth, 3.5% for domestic, 9% for international and 7% for SPD. So, just really broad-based growth across the company, across the divisions, back to 110 basis points of gross margin. You're going to see in a minute, we're back to 2019 levels, which is fantastic. Marketing, this is where we spent incrementally. We ended up at 11.4%. So, we spent significantly more than we originally thought. And this is really just, again to have momentum as we entered in 2025. And then 8.5% EPS growth, and we generated $1.16 billion of cash. You're going to see in a minute, 2025, we think we're going to be right around the same number. So, just generating a lot of cash. Our free cash flow conversion is around 115%, and that gives us a lot of optionality. So, look ahead. Matt did a great job of saying where we have been and where we are, a lot of things that are great about this company. We have confidence in our future, okay. This is really the outlook for the evergreen model over the years to come. Matt walked through why that's healthy, why that's doing well. I'm going to walk through in a few minutes how household penetration is a huge opportunity for us in the U.S., right? THERABREATH house THERABREATH HERO, of course, these fast growing businesses. But, litter and laundry are doing well, and some other brands are driving growth as well. Mike will come up. He'll talk about the high growth rate the international business has. 8% clip is very impressive. We have high aspirations for that business, over the foreseeable future. Innovation, Carlos will come up and he'll talk about how we innovate. We've totally transformed over the last 5 or 10 years how we innovate, going from one vector to more like four or five different vectors. And then Stacey is going to come talk about what we've innovated. And so the new products we have, very excited about many of those. Year two as well for some of the big launches we had last year. And then Surabhi will talk about our e-commerce growth and being digitally savvy. I know our e-com growth, you saw the chart that Matt provided, 2% going to 21%. This is an advantage for us, and we're going to continue to drive that forward, not just domestically but globally. Focus on domestic and international M&A. M&A is a huge part of this company. So here's a new slide. This is back in the year 2001 or 2000, we had one power brand. It was ARM & HAMMER. We were a $1 billion business. Fast forward 24 years and we're ARM & HAMMER is around a $2 billion business, right, mid-single-digit CAGR over 20 years plus. That brand is known and loved by consumers across many categories. It's rare to have a brand that can play in so many different categories. And then that means we have $4 billion of businesses and brands that are not ARM & HAMMER. And that ability to identify, acquire, integrate and grow brands and businesses is a competitive advantage for us, and we're going to keep that and hold that dear, and we're going to continue to do that as well. Moving to the U.S. story. We are hiring a new U.S. President and a new CFO, but today, I am the U.S. President as well. So domestically, our algorithm is 3%, right? The company is 4%, we do 3%, 8% and 5%. We have a long track record of growth organically in the U.S., and we have a lot of confidence in our future. 3.5% this year, why do we have confidence in our future? We're leaders in growing categories. You'll see in a second, our categories are largely green. We thrive in difficult environments. Why? Low exposure to private-label, but also household and personal care are balanced. And then our acquisitions have room to run. Our seven power brands fuel our growth. Matt showed a slide that said 70% of our sales and profits from those seven brands in those eight categories. In 2025, it's closer to 75%. So these brands are driving the company. Here's the snapshot report card on the categories. Again, we're in the right categories. This isn't happenstance. We acquire businesses that get us into categories that we like the attributes of. Weighted average, 2.7% growth, largely green in 2024. That's fantastic. And then we're one of very few companies that do this, but here's the scorecard from our brands. This is our share growth. And again, five of seven grew in 2024. So let's go to the individual businesses. Fabric Care our laundry business is growing at or above category averages which is great gaining share. In fact, we're at all time share highs. You look at the left side of the page, we're at 5%, 18 years ago, and today, we're at 14.5%. And why is that? One thing that's working really well is our good, better, best strategy for ARM & HAMMER Laundry Detergent. Orange bottle is our value brand. ARM & HAMMER with Oxy is in the middle, which is our better offering. And then Deep Clean is our best offering. Right? Consumers are picking up Deep Clean, and they're sticking to it. The incrementality rate on Deep Clean is very impressive. Stacey is going to talk a little bit more about new products around Deep Clean, so stay tuned for that. Cat Litter is saying, we're growing at or above category rates. This is actually doubly impressive because a competitor was out of stock last year, and so we maintained largely maintained our share despite that, which is a great result. Hardball is a big opportunity. This is lightweight litter, and a year ago we were around a 4 share, today we're around an 8 share, a 7.5 share. If we get our fair share of the clumping litter category, that's about $100 million opportunity. And so we're really encouraged by the progress we've made already on lightweight, litter category. HERO and THERABREATH. So HERO is -- first up, HERO consumption is off the charts, it's 40% growth, it's driving the category. And we're not just talking about the patch, we're talking about total acne. So we have the number one share in patch, but we have the number one share in acne as a larger category. And we have a lot of room to run. Distribution has been fantastic. We have lots of distribution gains. We think there's more, as we spread out on shelf, our TDPs will continue to go up, but more importantly, it's household penetration, 9% household penetration for HERO, 25% for the category. We're going to continue to invest our marketing dollars behind HERO to drive awareness. Similar story for THERABREATH, THERABREATH is 40% plus consumption. It's driving the category. And it's not just the number one non-alcohol mouthwash, it's actually the number two overall mouthwash, all-time share highs for the year 17.5%. But same story is HERO. A lot of room to run here too on distribution points, we've made some great gains. We think we're going to spread out even more on shelf in the years to come. You'll hear from Mike about HERO and THERABREATH for international. There's great momentum there as well. So household penetration we're at 10 share in households for THERABREATH. But look at mouthwash, 65% of households have a mouthwash. And so again, we're going to invest marketing dollars and innovation behind this category. And as you look at the trend line over a long period of time, that just shows that we're the number two mouthwash and we've been that way for the last three or four months. And then BATISTE, BATISTE is a category and a brand that has great growth, mid to high single-digits, and we're gaining share in BATISTE as well. Hitting all time share highs. You're going to hear about innovation and even maybe some ad campaigns from Stacey, our CMO. VITAFUSION vitamins, this is a business that has declined a bit. But let's take a step back. Here is the category. The category doubled over the last two or three years. Went from 1.5 billion to 3 billion. It's stabilized and it's flat. Now for these last three years. What's happening now? We're down a bit. We're down double-digits. The good news is the category is starting to inflict, that's a green shoot that's happening. And what are we going to do about it? We brought forward and rapidly, we broke glass in the organization to move innovation at a very fast clip. So we're launching an entirely renovated portfolio. This goes across all of our SKUs, in terms of new and improved formula. That's number one. Number two, we're launching our most powerful vitamins ever. This is Power Plus MultiVites. Stacey will go into a little bit more detail. And then third, there's a real need for sugar free in the category. And so many of our variants will be available sugar free. So these aren't me too innovations. These are going to be large investments and innovation, and we're going to support that with the marketing that it needs to be supported with. This is our -- in my opinion this is what's going to help drive that business forward, and new products. So, with that, I'm going to introduce Stacey who's our new CMO, and she's going to tell you about what we have on tap for 2025. Stacey Ramstedt: I am so excited to be here and to talk to you about our new products. So, we're going to have a little bit of fun. Okay? So, let's start first with a review of what just happened in 2024. Matt mentioned that our new products drove 50% of our incremental growth for the company. So, the - - what you see here are three of our heaviest hitters. So, let's talk first about Deep Clean. When dirt and stink run deep, we want you to clean deeper, and you do this with Deep Clean. And our consumers absolutely did that in 2024. So Deep Clean established that best year category, but also drove incremental growth for the brand. So, next step we have ARM & HAMMER Power Sheets, and this really marries the ARM & HAMMER Clean with the convenience as well as the mess free format of a Power Sheet. So, this allowed us to tap into the fastest growing segment in laundry. And last and certainly not least, we had ARM & HAMMER Hardball. ARM & HAMMER Hardball is our technologically advanced Hardball lightweight litter, and so that makes cleaning your litter a breeze. So, what I love about this story is, one, there is a tremendous amount of runway with these items. So, we're going to definitely invest in growing awareness and trial of these items so we can drive incremental growth in 2025. But furthermore, we're going to expand on each of these in 2025. So, I'm going to take you through some of that. Okay? All right. But before we get to our first innovation for 2025, let's take a look at the free and clear segment within the laundry category. This is a huge segment. It's $1.3 billion, and it has absolutely been skyrocketing over the last couple of years. Now we already have some products that fit within this space, but we've identified an opportunity to capture an additional over $20 million in incremental opportunity. So, I'm going to talk you through, how we're going to do just that. All right. So our first new product for 2025 is ARM & HAMMER Deep Clean. This is our free and clear detergent. And so, as you would expect, this is catering to the consumer with more of a sensitive skin, and it's certainly free of all of what you would expect. But the real game changer with this item is that we are the only brand with the SkinSAFE certification. And this is something that's very meaningful to consumers as it gives them the assurance on product quality and safety. All right. So, continuing with that theme, I'd like to introduce you to our ARM & HAMMER Power Sheets in a fragrant free format. So, this is what I call uncompromised clean. So, this is dermatologist tested. It's free of dyes and perfumes. But the real breakthrough is that this item has 50% more cleaning than the leading value brand because our consumers do not want to compromise with their product choices. All right. Last but not least, we have ARM & HAMMER Plant Power. This is our clumping litter, and what's the scoop? The scoop is this, we are bringing our hardball technology into the natural segment. And this is why this is such a big deal. Consumers who buy natural litter feel that, it doesn't do as good of a job to control odors, and that's because many natural litters will use additives, and those additives lead to mushy or brittle clumps. So with our hardball technology, we do not use additives in our natural version for superior clumping. So we really think that this is going to do very well in the natural segment and believe, if we were to get our fair share, this could be over $30 million for this product launch. Alright. And that would be incremental. Moving on, and Rick stole some of my thunder here. We are going all in on VITAFUSION, and we have three new initiatives planned for 2025. And we really are moving at lightning speed to make this happen. We are, first going to introduce a new and improved formula. People, this is going to take taste to the next level. So I want you to imagine a burst of flavor, a velvety smooth texture. This is with our innovative heat-resistant formula and softer chew. So not only that, we've also given our MultiVites a kick with 10% more Vitamin A, C, and E. So really excited about this launch. Alright. What's up next? We've got, VITAFUSION Power Plus MultiVites. This is our most advanced formula. We have formulated with a 100% daily value or more of 10 essential ingredients. This is more than any other gummy in the market. And then we've supercharged our advanced formula for adult multis with calcium. We've given the women's multi a boost of choline. And last but certainly not least, we've given our men's multi a boost of CoQ-10. So really excited about getting this item into the marketplace. All right. This is another teaser slide. This is where we're going next. Sugar is the biggest barrier preventing non-users from using gummies. And it's no surprise then to see that sugar free gummies are really taking off in the last couple of years. So we plan to expand on our sugar-free segments and portfolio of products. This year, we're launching Power C as well as men's multi. When you add those two products to our suite of sugar-free items. This is going to represent more than 60% of VITAFUSION sales in a sugar free variant. Because make no mistake, consumers do not want to compromise. We want to give them that same great, update to the taste experience, but in a sugar free formula. So we know this one's going to go over really well. Alright. Switching gears. Rick talked about HERO and how much HERO is a key contributor to growth, for Church & Dwight. So it's no surprise. We're going continue to innovate, for HERO. And specifically, I'd like to introduce you to our HERO Mighty Patch Body patch. So I may be able to speak for all of you, but body acne is a real pain in the butt. It's also a pain in the chest, in the back, and so forth. So it makes sense that we launch our largest patch, we call it our XXL patch, which is over 3x the size of our next biggest patch, which is the surface patch. But again, the real game changer here is the notches that we've built into this patch. And so with these notches, it's for better adherence to your curved body parts. Also, when you move, it adheres to your skin so it stays put exactly where you want it and still gives you that same absorbing gunk within six to eight hours that we're known for with our mighty patch, pimple patch. But now, we can take care of that back knee and chest knee and so forth. So we're really excited about this item. So the last new product that I have for you, and this is just for the first half of this year, is I'd like to introduce you to BATISTE Light dry shampoo, because some days do call for a lighter dry shampoo like day three and day four. But even more importantly, we know that non-users do not want that white residue or that gritty texture that they can get sometimes from a dry shampoo. So I'm going to say to you that this is a triple threat. Our BATISTE light dry shampoo has no white residue, a lighter feel, and a beautiful soft fragrance in our mellow melon and matcha zen flavors. So again, consumers don't want to have to compromise. They're going to get the same great superior BATISTE efficacy, but now in a lighter formula. So I'm really excited about this one. All right. So I feel like I could not be leading marketing for Church & Dwight without showing you a spot or two. So I do have two creative spots that are finished. They're ready to go. So you'll be seeing them first before anybody in the marketplace. And we are launching BATISTE Light dry shampoo with these two new spots. So if the people behind the scenes could play the video. [Audio-Video Presentation] Sometimes my job can be a lot of fun. So we have a good time with that one. Alright, so I'm going to leave you with this. This was just your teaser for 2025. This is what's launching in the first half of the year, guys, we have more coming in the back half of the year. And so if I were you, you might be asking, so what's behind the magic that makes innovation, this innovation, and that I'm going to say is my intro for Carlos Linares, who's going to -- who heads up our R&D and he's going to walk you through just exactly how this innovation comes to you all in the marketplace. So thank you. That's what I've got for you. All right. Carlos Linares: Okay. Thanks, Stacey. So tough act to follow is the marketing and the ads. All right. Yes. So, I'm here to talk to you a little bit about how we think about innovation and how we've kind of transformed innovation. And just a quick thing about myself, we haven't been in these forums. But so, I've been doing R&D innovation for now close to 40 years. Big company, about 20 years, Procter, J&J, and then led some smaller midsize companies, in in both beauty and home. So, I came to Church & Dwight about seven and a half years ago, attracted by the brands, the culture, and really kind of an invitation to innovate differently. So, my kind of key messages today as I go through this is we have transformed how we innovate at Church & Dwight. I'll show you some of that, and it's also a unique approach that we've developed for Church & Dwight. So, it is not a smaller version of what you may hear from some of our bigger competitors. It is unique, and that's why we think it's sustainable. So, let me first talk about, what are we doing to create differently. So, Rick mentioned this before. We've gone from one innovation source in a sense to five. And not only are they additive, really the use the challenge here is how do you make them complementary and not competing? And I think that's part of what we do differently at Church & Dwight. So, let me kind of give you a couple of different levels of why this complementary connection is very different for us. So, when I joined the company, you kind of look at our portfolio and it continues to grow a lot of brands, a lot of diverse brands, a lot of diverse categories, and yet we're very proud of our revenue per employee. So, that's a challenge when you look across the organization. So over time, we've looked at it and the highs, how do you flip that model into an advantage into a strength. So, our advantage today is we really want to connect a lot of these diverse dots, which are really least innovation, better than others do and probably in ways that others can't because we know personally, I know what the big companies can and can't do, and they really can't break the silos the way that we can because of our size and our culture. So, let me give you a kind of a very concrete example. Last year, we introduced BATISTE Sweat Activated, and how do we get there? So, if you go across our or across our, brands and our categories, odor control, odor reduction is a common consumer need, right? Whether it be oral care, laundry, litter, women's health, deodorants, you name it. That's a very common need. So, rather than attack that individually by R&D department in a sense, we create these platform teams that go across and try to create scale. So, the idea is, hey, if you're looking at odor, talk to each other across the organization and connect those dots better than others. And when we go talk to the outside world and our partners, we go to them as a company, not as an individual business unit. So the BATISTE story is one of our partners identified some things, some technologies that were really existing in other categories, and we were the first to bring them over into hair care. Others could have, but they never did because they're not really talking to each other, Right? They’re very vertical in how they do it. So, that's kind of a bit of our magic with connecting these diverse competencies. And if you kind of elevate that to these five innovation sources, it's kind of the same story. Other people could do this, but in most companies, they've got one kind of dominant work stream for innovation. We've got these and they're not really competing. They're really complementary. So today, kind of end result is more than 50% of our pipeline is coming from these new innovation sources. So, not only are we adding in terms of the contribution, but the total pipeline is actually now much better than it ever was before. So, kind of, once you have a great robust pipeline in a sense, now it's about making choices. So, this is our other unique way of looking at our innovation across our categories, which is this very simple grid around science-based innovation versus business growth. But this is really driving our behavior when we have a good strong portfolio. It’s how do you make them bigger, kind of the arrows here? So whether it be choosing where do we make the marketing investments, where do we leverage these across different channels, or where do we leverage these across international. It's all about creating the scale once you find something that you really, really like. When you step back, today, our innovation portfolio is more balanced than it's ever been before across all the types of innovation. We have more transformational innovations, which are what we call our blue box. It's the upper right hand side. Stacey mentioned a few of those. We're very proud of all of those that are there. Shoots in particular, I've never seen a product where from early development all the way to launch, the consumers love them all the way through. We've never had a negative reaction to that product. It's really intuitive and loved. And we have got more coming. Unfortunately, we're here in the beginning of the year. There's some things that we'll reveal later on in the year because it's too soon, but we've got a very strong pipeline coming. The last thing is we got bigger bets, and we that's just kind of the top of this of this grid here. We got a lot of products. Stacey's mentioned a few of these. I'm not gonna go through, the list, and then Mike is going to talk a couple of these in the international portfolio too. Okay. And let's just talk results. So basically, if you look at all these together, we have now increased and accelerated our incremental net sales from historically, it was 1% to 1.5% to 1.5% to 2%. Our metric for innovation is in INS, right, incremental net sales. So it is not other people measure it differently. This is not gross sales. This is post cannibalization, so we're not just looking at replacing our products. Every time we're looking at innovation, we're looking at how does it grow and how does it add to the company's growth. That's why, as Rick and Matt mentioned, last year, we were contributing half of the growth. It was pure incremental growth from innovation. If you step back and say, okay. When we kind of started this in 2017 or so versus today, given the size of the company, that change from 1% to 1.5% to 2% is really almost a 4x in incremental dollars every year, because the company's grown, so the challenge becomes bigger every year. As we drive that, we're looking at 4x what it was seven years ago. So and it's also -- it's working, but it's also sustainable. We think 2024 was our best ever. 2025 is continued momentum. You said, you've heard a couple of these, but we truly believe that the model, because of the way it's working for us, we think is going to continue to contribute long-term. And then one last piece to cover before I hand it over to Mike, kind of our global footprint. We've got seven global centers, four of which are outside of the U.S. And each of them have very clear responsibilities. We have no overlap. We're too lean to have overlap with within our categories. You see the big flags there are our seven global centers. And then we also have six regional sites, which are kind of the smaller ones. And this is really more about putting the basic, whether it be technical folks or regulatory folks to help Mike and his team grow across around the world. The next thing, kind of back to that connect the story, all of these folks now, if you look at typical R&D products, package and development and so forth, regulatory people feeding the global structure, our plants quality people, and our innovation folks from marketing, they're all under one roof. They're one R&D organization. So that's why for us that that power of that that connected team, again, it's another thing that probably the big guys can't do. They're much more vertical. The smaller guys don't have that luxury either. So it's another one of the advantages. Everybody's now marching towards, a really humming innovation engine to be honest. So as we look at this we feel, we've transformed R&D and innovation, but given where we're at today, we really feel confident that we could continue to do that going forward. And with that, I'm going to choose Mike Read, Heading up our International team. Mike Read : Good afternoon. My name's Michael Read, I lead our consumer international division as well as our specialty products group. And I'm delighted to have Shitij Chabba with us here today. So he'll take us through the SPD business in a few moments. So I'll focus on the international story. As you know, our evergreen model for international is 8% organic growth per year. And just to ground everyone, we're about 1 billion in size. We operate kind of in two parts, about just under two-thirds of our businesses through our subsidiary markets. We have six subs that we run, Canada, UK, France, Mexico, Germany, and Australia. The rest, the 37% we run through our GMG businesses are global markets group. And we operate over a hundred countries, and we work through almost 400 valued distributor partners around the globe. And we support that with five regional offices, one in Shanghai, one in Singapore, one in Mumbai, London, and Panama. And those offices continue to grow and add resources in order to support the growth we've got in those respective regions. 2024 is an outstanding year and certainly capped off with a great Q4. Our sub-markets grew almost 5%, and our GMG business grew 19%. I point to a few things. Certainly over the last couple years, we've had increasingly better service levels. That's one key part of it, but more importantly is we've had really consistent growth across the market, strong portfolio management, and we've really leveraged some of our new acquisitions particularly here on THERABREATH. They've been really strong drivers for us. Most importantly, if you look back a couple years, but throughout the year we've had really consistent growth across the quarters. So we're seeing broad-based growth across brands, across markets, and across quarters. So just again, just to reinforce the momentum and the confidence we have in our plan and our strategy, we've seen some really consistent growth and we see that continuing moving forward. If you look back over the course of the last 10 years, we had a little bit blip, certainly during kind of COVID and some of those kind of tougher years, but kind of X that we've had really strong consistent growth for a really long period of time. And we now have elevated our evergreen model to 8%, which we're really confident in. This came up early around, we have about 18% of our businesses international, and that's still a fraction versus many of our competitors that have been on their international journey a lot longer than we have as a company. So this really gives us the kind of the opportunity and the momentum to keep growing. There's a lot of runway both from a geographic point of view and also from a brand expansion point of view. So we see this not as a bad thing, but actually as real opportunity for us to grow. And we're growing at a really fast clip, I think most notably is, our brand portfolio travels extremely well. And we leverage kind of three parts. One is we do leverage our U.S. power brands like ARM & HAMMER, OXICLEAN, VITAFUSION, et cetera. Those perform strongly across the globe in their respective categories. We also have a unique set of brands that are either internationally only, or largely been built out of international. Those are mostly, OTC and personal care brands like BATISTE, THERABREATH, FemFresh, Gravel et cetera. Those are really high performing brands in many, many markets. And then I think we're doing an increasingly good job of accelerating our acquisitions and getting them market quicker and having them a bigger part of our growth story here on THERABREATH, certainly are the two notable ones there. Speaking of HERO, so last time when we were here, we talked about kind of how quickly we're going to roll out HERO to over 40 countries. In 2023, we moved to 12 pretty quickly where we could get registrations. We've moved to over 40 in 2024. We'll be in over 50 early in 2025. So this is the fastest we've rolled out a brand, as we've acquired from a U.S. business and taken it globally, and that'll become the blueprint and the playbook for us on future acquisitions. But a really great job of getting this to market really quickly, and we're seeing really strong success as a result. STERIMAR, which we haven't talked a lot about in the past is one of our biggest brands internationally. It's in over 90 countries. This year, we're celebrating our 50th anniversary, but really high CAGR growth for us. We have a very strong portfolio within the natural nasal hygiene space. This is a really important brand internationally that continues to grow and is a really important part of our portfolio. That's a little bit different than what you'll hear from the U.S. domestic team. Stacey touched on the importance of innovation in BATISTE. We've certainly benefited that on our active SKUs with Sweat and Touch Activated. They've been really incremental additions to our international portfolio. BATISTE is the world's largest dry shampoo brand, widely distributed, and a really strong grower for us. But innovation is a critical part of that, and we're seeing some really strong results in all our key markets. OXICLEAN has been a really great driver for us and a focus, and it's not available in a lot of markets yet, but will continue to grow in terms of market expansion, but 20% growth last year and that's increasing our CAGR over the last few years. We are the number one powder brand in both Canada and Japan, and we've since just launched into the liquid segment in our Japanese market. So, really exciting opportunity for OXICLEAN to continue that momentum. It's got a long runway ahead. And then finally, from a brand point of view, I'd just touch on Power Sheets. So, we don't have liquid laundry in many of the markets around the world, but Power Sheets is something we have pushed into. It certainly gives us an opportunity to establish a new segment in many of the world's geographies. We got into 12 markets in 2024. We're going to be in more than 25 by the end of 2025. We're already number one on Amazon in Mexico, and there's really good momentum where we've got distribution. So, this will be continue to be a focus, and we'll learn to see what we can do. We'll also pick up a good amount of the innovation pipeline from the U.S. market as well. So, really great opportunity to sort of lift and shift and see where we can get some momentum in a category we really haven't played in traditionally on a global scale. So, we've got lots of things we invested in and lots of confidence in where we're growing as a brand or as a division rather. What I would point to is there's a few thing here that's not an exhaustive list, but I think they're notable ones. In the middle of this year, we made an acquisition of a long time value partner in Japan, which is the graphical team. We see Japan scaling up over the next number of years as we add additional brands to the portfolio. We've implemented a major global ERP system, so it's easier for us to kind of work with on a global basis, and as we grow our partners and can kind of grow with us. We widened our regulatory and IT infrastructure quite significantly, and that is kind of lines up with the regional offices we have around the globe. We've expanded our offices in Panama and Singapore as the teams widen and as the business grows. We touched a little bit on here, on THERABREATH, really strong acquisitions for us. I think I would add just leveraging NPD from other markets. Those two things combined have been a really big part of the growth story. And lastly, and Matt and Rick touched on it earlier, we are we have put resources from an M&A perspective in both Europe and APAC in order to start to get into the deal flow so we can look at international acquisitions. That would be in addition to leveraging any acquisitions we make from a U.S. perspective. So, this is, as I say, not an exhaustive list, but a lot of investment, a lot of support going into our international growth, and it's certainly responding. We have a long runway ahead. So, with that, I will pass over to Surabhi Pokhriyal. Thank you. Surabhi Pokhriyal: Thank you, Mike. Good seeing you all today. Introduction, Surabhi Pokhriyal. I lead all things digital ecommerce media and optimization for Church & Dwight. I'm super excited to represent our mighty batch of digital growth team at Church & Dwight. So this is the mighty batch I speak about. This is from our off-site where we were rowing where the U.S. Olympics team rose. That just tells you the kind of caliber we have, not in rowing, but in digital for sure. And we row all in the North Star direction of accelerating e-commerce and media for the organization. This is truly, industry's best of breed talent that we have acquired in the company in recent years. Let's talk business. Matt and Rick both alluded to the percentage of our business that is from e-commerce today. It is 21 point something percent, way up head, shoulders, and torsos, from a lot of our competitors. We are, if not the top tensile, top quartile for sure in all of CPG in terms of e-commerce. I do want to remind that, we are not in the business of calculating how much of our business is from e-commerce. We just are present wherever our consumer is present. And especially after COVID, the convenience of buying online, whether it is your 2 AM melatonin you need, with your last miler, or your cat litter box that needs to be delivered at your front step, the consumer just loves convenience and we are riding that wave and making sure our products show up wherever they need to show up. This is that incredible trajectory. As you look at earnings from our retailers, even you will notice a lot of them have started publicly speaking to the amount of growth they see from ecommerce. So you can connect the dots there of where the retailers are getting bulk of their business and where manufacturers like us are making sure, we are getting a lot of our business as well. Let's talk share. So we have seven power brands that you know of. Four out of the seven power brands have done incredibly well in 2024 where we are not just maintaining, but growing share. I'll speak to the biggest one in particular, ARM & HAMMER Laundry. Laundry is a big part of our Titanic. It contributes a ton to the growth of the organization. So we won online share not just in liquid laundry, but sheets, unit dose, and set boosters. And that speaks a lot, because laundry is typically considered a category that is meant to succeed in bricks-and-mortar. But how we manage share today and just to qualify, online share does not just mean Amazon share for us. It means the target.com, walmart.com, kroger.com, all of that combined is where we are winning in all of these four brands. Aside from the four of seven brands where we are winning in share, 70% of the brands that contribute to 70% of the sales, we are winning in each of them in terms of online share. Some notable ones being Zicam and Nair. THERABREATH, of course, you know how phenomenal THERABREATH and HERO have been to our story. HERO has been a digitally native brand. It's doing much more successful, being much more successful as we gain bigger and bigger bricks-and-mortar distribution. I'll start this section just by re-grounding us in terms of what our approach is. Like I said, we are here in this era of connecting content and commerce. You will note a lot of retailers are trying to seem into trying to be more social and community builders for the community, for the consumers at large. But a lot of social channels also have aspiration to be retailers. The lines are blurring between where is content shown and where is commerce happening, and we want to stay at the intersection of both commerce and content. So that's our priority one. Second, everything is buzzing AI. I'm surprised I'm the first one on sales stage to speak about AI, but I'm sure you are also following a lot of news on this. We want to look at AI, which is not a hammer looking for a nail, but which is clear in terms of what's the business problem or context we are solving and how can AI enable us to that. I'll share a couple of examples, especially in marketing creative. And as you walk the halls, I welcome you guys to have more conversation on that. Lastly, in terms of e-commerce, global footprint, Mike spoke clearly how we are just 18% of our company's business comes from global today, little bit behind where our competition is, and there's a ton of aspiration we have, especially in expanding with respect to e-commerce. I'll share a couple of examples how our new launches are doing amazingly well in every market that we launched. Speaking to our first pillar with respect to content and commerce, you are super familiar how social has become what I called the third shelf of discovery, there's a physical shelf in store, there's a digital shelf that you go online and try to shop and socialists sometimes you're not even trying to shop, but you do a lot of serendipity 2:00 AM kind of shopping on social. So we are there at that moment of truth where the consumer discovers us why she's doing the endless scroll. We are super intentional about making sure we partner with both micro and key opinion leaders, influencers who impact how consumers make their decisions today. You'll see a couple of examples here, be it the Alex Edgar or Suni Lee, the Olympic gymnast, and a lot of live streaming shopping that we have been doing in China for years now. The notable thing to see here is not just that over 10 of our brands have the highest number of video views on TikTok across all categories we operate in, but it's not just about views and followership. A lot of our content has industry leading engagement rate and what engagement rate means is our -- the consumers are not just liking and following our brands, they're commenting on our posts, they're sharing our posts, they're interacting and building community with us. So that's super meaningful for us, because that's the long-term loyalty and intimacy that we want to create with our consumers. Second, we are super careful that we don't want to leave media as a dead end, we want to make sure that once the consumer is inspired by seeing an ad spot, either on TV or TikTok, there's an ability for them to shop our products. So we are making sure that over 90% of every media that you see, be it YouTube, TikTok, Instagram, or anywhere else, we will lead you to a cart in one to two clicks if you have the desire to shop our products. This is an example of one of the AI initiatives we are leading. There's the concept of aspect ratio, you can shop on your six inch mobile phone, but you can also shop on your 60 inch television. AI is helping us make sure that creative is conducted in a way that there is less human touch involved and making sure that creative is valid, both for the six inch screen and the 60 inch screen. So you'll see couple of snippets here, both for ARM & HAMMER, and our partners like TikTok and Google make sure that they grade us to tell us how we are performing with respect to their expectations on showing up creative really well. So AI is super important, not just in terms of showing up well on social creative. We also know that as the consumers shop for us online, you spend no more than five seconds in our kind of what I call low consideration categories. So if you land on an Amazon or a walmart.com page, we have to make sure that the five seconds you spend looking for ARM & HAMMER or laundry sheets, we make the right first impression on you that you are inspired to add us to the cart. So look at these examples. The score at the bottom left goes from 18.5% to 87.4%. All that means is this is AI helping us do eyeball tracking on lookalike audiences to make sure that the creative we put out has the maximum eyeballs on it in that five second time on the retailer PDP. And this has done wonders for us, because the more the creative is sticky, the higher chances are that the consumer converts and buys the product. Finally, speaking to the global footprint, Mike spoke eloquently to it. THERABREATH, Mighty Patch HERO, and Power Sheets have done a lot for us. These are what I call category disruptors and even category creators. We launched them in markets where there were no sheets existed and no acne patches existed. And within 6 to 12 months, they ranked number one spot in several online retailers. THERABREATH in particular, you'll notice an interesting retailer here. Not many might be familiar, but Olive Young in Korea is the number one beauty retailer where THERABREATH quickly garnered a spot one. Similarly, Mighty Patch across France, Germany, Mexico became number one really, really quickly. So, our products travel well literally, quite literally. Finally, I'll wrap it up by saying our pace of growth on digital has been quite phenomenal, industry leading truly, but we are very focused on being clear about where to play and how to win on that. We have industry leading ecommerce growth, but we are in aspiration and in true form making it as profitable as we can. So, we are very choiceful about what we sell online, when we sell online, and where we sell online. We have unprecedented online market share today we are on track to keep growing it. We are also super conscious about best ROI on our media spend. I may not have mentioned, but about 82% of our marketing dollars today are digital media, which is why you see all the media there, and we struggle to give you TV, print spots that we used to have back in the past. So, we have to print them especially for these kind of events. So, we have to make sure that our retail our media dollars stretch the highest so the return on investment of that is super critical for us. In terms of category leadership and digital penetration, like I said having rapid market launches like we did for HERO, THERABREATH, and Sheets is critical, and launching them online first gives us early dibs into what the consumer is feeling and gives us an opportunity to tweak them as needed as we do broader brick and mortar launches in those markets. We'll do a lot more on AI and technology, both in martech and adtech, and we lean on both large and smaller third party technology partnerships, and that's one big area of impetus for us in the coming years. I'll close by saying, the best way to predict the future is to create it and we are hard at it. Along those lines, there's a big business pivot we have in Specialty Products Division and I welcome Shitij Chabba to share more on that turnaround story. Thank you. Shitij Chabba: Good afternoon, everyone. My name is Shitij. I'm the leader for our Specialty Products Division. It's really my honor and excitement to share with you the B2B arm of the company because for many of you, it may be a question, why does a CPG company even have SPD? And I want to show you what we are doing and how we are contributing to the growth of the company, and how we'll keep growing and be a growth accelerator for the overall organization. As you all know, our evergreen growth model target is 5%, so let's see how we did last year. Last year as a division, we delivered over $300 million in revenue. It's split 60% on our animal nutrition business, and roughly 40% under our Specialty Chemicals division. But let's take a moment to look under the hood, what really is SPD, Specialty Products Division. Specialty Products Division has three businesses. The largest business we have is animal nutrition. I can ask you around how did Church & Dwight enter animal nutrition. It's very, very simple. You know we sell ARM & HAMMER, hopefully all of you are a user of our ARM & HAMMER, which is the baking soda, you see samples here. Chemically, that's sodium bicarbonate. That same sodium bicarbonate, the company started feeding many, many decades ago to dairy cows. It helps with food digestion as well as better milk production. That's how we entered the world of animal nutrition. And now you fast forward, we are manufacturing both feed supplements, marketing and selling, but also pre and probiotics. Now there are lots of companies that say they sell probiotics. So, what's special about us? We are truly unique. What we do, you can buy -- if you're running a dairy operations or a poultry farm, you can buy probiotics. Everybody will ship you in a bag and that's their probiotic sample. But what we do, we go to your operation. Let's say you're running a dairy farm. We'll come to your operation, we collect samples, we send those samples to our lab in Wisconsin, where our scientists analyze those samples, run it against our library of probiotics. We have over 82,000 probiotic streams. And then, we match that for your unique need and create a truly customized solution. And we sell that under our CERTILLUS brand. It's a great product that we are very, very proud of, and you're going to see more about it. Our second biggest business is performance product. This truly is the core of the company. Performance product is where we sell, again, ARM & HAMMER sodium bicarbonate. Remember the same baking soda I talked about? It's where are we selling it? Instead of selling in the half pound bag or a pound bag that you buy, or you may buy at large, box chains with 5 pound, we sell at 50 pound bags like you see on the screen here, or maybe up to a 1000 kilo tote. We're selling it for large B2B application. Industrial, pool, but even lifesaving application like hemodialysis. So it's truly amazing what sodium bicarbonate can do and the number of application it has. The third business that you may not have heard a lot about is our B2B business. This is where we take all the amazing brand the company has, Search and Write, we customize their packaging, and we sell them for commercial and professional applications in different channels. From Janssen, food services, hospitality. It's small, but I'm confident this business is poised for growth, and you'll hear a lot more about, not just today, but in coming years from us. SPD, I joined the company roughly two years back. And when I came and I analyzed the results, as you can see, we have had inconsistent performance. So one of the very first thing we did, as a leadership team, we looked at it and we said, what's our strategy going forward? We created a new vision for SPD, and we launched a new strategy called SPD Reimagined. So I'm very excited to say that, if you look at our results from last year after launching the strategy, we had an amazing turnaround. We went from negative 8% in 2023 to plus 7% organic sales growth in 2024. Now how did we do that? As I said, we have an amazing group, we have a very talented team of individuals, but we did core pillars in our strategy. First, we divested the non-strategic, non-core assets. I think you heard about we shut down our MegaLac, which was a dairy supplement business in Q1, we exited our food safety business in Q2. And what did that do? That allowed us to focus on portfolio optimization. Simply put, across the three businesses, we could focus on brands that drive profitability and channels, where we can do more higher profitable growth. And that really helped us. Then next we shift to just like the broader company you heard from Mike, international. International is a huge growth opportunity for SPD. And we are focusing on key countries, both in Eurasia, as well as Latin America. Last year, actually, we hired new sales leader, both for our Latin America business and for our Eurasia business. So we're very excited, the results we're seeing from that. And then we invested in marketing and innovation acceleration. And you'll say, what did you invest? Again, when I joined, I was very surprised to see that, we are part of a CPG company, and we had no in house marketing, right? You heard from Stacey, our CMO. So just like marketing is core for CPG, it's essential for B2B business also, from both the right brand messaging, brand positioning, and doing the omni-channel marketing, because the B2B customers are everywhere just like we are. And what did that do? Here's a great example I'm excited to share. We launched our CERTILLUS, remember the probiotic I talked about the customized probiotic. We launched two new products last year called them HatchWell and Newell. So what are these products? So we have as I said, over 80,000 strains of probiotics. Our scientists and our technical service team identified one of our poultry operators were having issues where the poultry chicken, they were dealing with mobility issues. The chicken couldn't walk to get the water and the food where it is. And guess what this was called. Before our marketing team, this product was called CERTILLUS Enterococcus cecorum something. So you all needed to be a PhD to understand what this product is. And this is where we rebranded it and we said, well, what does it do? Move well, even I get it when you hear the word move well, it's your chicken can move well, it can have a better quality of life. And our production partners, they have higher productivity. Both these products HatchWell and Newell have been great success for us. And we are seeing a lot of engagement for our customers that is helping us grow again with our innovation acceleration and our portfolio optimization. International. International, we have a huge runway of growth. Last year we grew 7% and now international represent 28% of our sales in our animal nutrition business. But we have gained, we are continuing our product registration for our pre and probiotics. So CERTILLUS CEL-MAX, A-MAX our brands and just last year alone, we added 15 new countries. So we are rapidly expanding where we are going to enter with these countries and keep growing hopefully much stronger than the average market growth rate. So to summarize, I'm very excited, hopefully you can hear that that SPD is going to be as Matt said, perennial growth driver. We are going to keep driving 5% based on these pillars. We are focusing on the right brands that will drive the portfolio optimization. International is a key and we are excited about the growth we are seeing there and building on the whole strong marketing team that we have created and innovation acceleration. So it's going to really lead the way. With that, I'll pass it back to our CEO, Matt Farrell. Matt Farrell: Thank you. Many of you know I've been with the company for 18 years and the one thing that's remarkable about Church & Dwight is its consistency and maybe wonder how does that actually happen? And what we're known for is execution. And what that means is we do what we say we're going to do. That's the difference between a company that consistently successful and one that is not. So you come to, there's lots of analogies between sports and business people roll their eyes when they hear them. But one thing that is true is that the teams that have the best players win. So when you're investing, you're investing in people. This Analyst Day, it's the one time a year you get a peak under the hood. You see some of the leaders of the company and they come up and kind of talk. I have the pleasure of working with these people every day. We have exceptional leadership in this company. These are understated people, low ego, massive technical skill. And it's not just at the top, it's throughout our plants, it's in our laboratories, it's in our sales offices, it's throughout the company. And a lot of companies will say things like that and you kind of -- you'll be checking your watch or looking at your phone. But if you're trying to figure out why is this company so successful for so long, that's it, it's the culture of this company, the kind of people we attract, the kind of people we recruit to the company. And many of I'm going to be leaving here in April, 1, April fool’s Day. And, but this company is in such great shape, starting at the top with Rick and the management team that you're seeing here today and the strength that we have throughout the company. So, it's a good time for me to walk off the field. So, I'm going to move on now to, how we run the company. If you've owned the stock for a long time, you can check your phone right now. But we have five operating principles, right? You've heard this before. And that's the thing about Church & Dwight. Many of the things you hear from us, you've heard last year, the year before. You hear it down here at the Stock Exchange. You hear it at CAGNY. That's because we have an operating model, and we stick to it, and we execute it. Again, back to do you do what you say you're going to do. It's a personal commitment that we feel, not to the company and to each other. We say this is what we're going to pull off this coming year. So, you heard a lot about our brands, about leveraging our brands. We got great brands around the world. Second thing is friend of the environment. A little bit about that, that's very important to, not to just to our employees, but it's also important to our consumers. It's important to our retailers. And we have a long heritage and we're really proud of, starting back in 19th century. You've heard me talk about bird cards before. I'm going to show one of them in a minute. But, I always take a little bit of time to talk about our heritage here. You know, if you look at early 20th century, we were using recycled paper. We were the 1st to take phosphates out of out of liquid laundry detergent. We've been planting trees since 2017. We planted millions of trees that take CO2 out of the atmosphere. Remember all that from 5 grade, right? Photosynthesis. And a 100% of our global electricity is offset by, green energy. And then we started we signed up for science based targets so we have these, projects to take CO2, out of the atmosphere because we use a lot of CO2 when we're making baking soda. Here's one of those bird cards that we used to put in our in our yellow boxes. And if you can I don't know if you can read it very well, but it says useful birds of America, and at the very bottom, it says for the good of all, do not destroy the birds. And for those of you who are interested, you can still buy these. These are the original bird cards. They're available on eBay. So, buy now. This is not an advertisement for eBay. I just want to tell you. I know many of you are very enthusiastic about the ARM & HAMMER brand. It's just something you want to look into. All right. ESG, everybody gets measured on ESG. You can see we got great scores consistently ‘22, ‘23, ‘24. Third thing to talk about is leverage people. We have a really lean shop. We've always had a really lean shop. Why is that important? It's because it forces you to prioritize. You only work on the stuff that matters. So, consequently, we have the highest revenue for per employee of any of our peer group. So, we got $6 billion in sales. We got 5,500 employees. So, we got over $1 million of sales per employee. And, as Surabhi took us through, we're world class when it comes to e-commerce. And we got there because we put our minds to it. We knew we were bottom of the barrel in 2016 and now we're ahead of the pack. We really believe in a simple compensation structure so everybody kind of knows where they are at all times. We don't get involved with EVA or some of the other these complicated esoteric measurements. Is straight up net revenue, gross margin, cash, EPS, and strategic initiatives, 20% each, and it's unusual for a company to have gross margin as part of incentive comp. What that does is promote financial literacy. When it's going to hit your pocketbook, you're going to say, hey, what is gross margin? How do I get it? And that's just going to galvanize as a company. And the ways we get it, good to great,
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Insider Purchase and Financial Challenges at Church & Dwight Co., Inc. (NYSE:CHD)

  • Executive Vice President of International, Read Michael, purchased 3,000 shares, increasing his total holdings to 5,505 shares.
  • Q1 2025 saw a decline in net sales by 2.4% and organic sales by 1.2%, attributed to a weakening US consumer environment and retailer destocking.
  • Financial metrics indicate high valuation with a P/E ratio of 38.96 and concerns over growth outlook due to tariff headwinds.

Church & Dwight Co., Inc. (NYSE:CHD) is a prominent American manufacturer of household products, including Arm & Hammer baking soda and OxiClean. The company competes in a challenging market against giants like Procter & Gamble and Colgate-Palmolive. Recently, Read Michael, the Executive Vice President of International, made a significant insider purchase of 3,000 shares of CHD at $92.07 each, boosting his total holdings to 5,505 shares.

Despite this insider confidence, Church & Dwight faces several challenges that impact its valuation. The company holds a rating due to declining growth prospects. In Q1 2025, it reported a decrease in net sales by 2.4%, with organic sales dropping by 1.2%, primarily due to a 1.4% fall in volume. This downturn is linked to a weakening US consumer environment and retailer destocking efforts.

Tariff headwinds further dampen Church & Dwight's growth outlook, with no immediate signs of recovery. The company's financial metrics reflect these challenges, showcasing a high P/E ratio of 38.96, indicating that investors are paying a premium for its earnings. The price-to-sales ratio stands at 3.71, and the enterprise value to sales ratio is 3.90, suggesting a high valuation relative to sales. Additionally, the enterprise value to operating cash flow ratio is 21.95, indicating potential overvaluation based on its cash flow. Despite these concerns, Church & Dwight maintains a current ratio of 1.95, demonstrating its ability to cover short-term liabilities with short-term assets. The earnings yield is 2.57%, reflecting the return on investment for shareholders.

Insider Purchase and Financial Challenges at Church & Dwight Co., Inc. (NYSE:CHD)

  • Executive Vice President of International, Read Michael, purchased 3,000 shares, increasing his total holdings to 5,505 shares.
  • Q1 2025 saw a decline in net sales by 2.4% and organic sales by 1.2%, attributed to a weakening US consumer environment and retailer destocking.
  • Financial metrics indicate high valuation with a P/E ratio of 38.96 and concerns over growth outlook due to tariff headwinds.

Church & Dwight Co., Inc. (NYSE:CHD) is a prominent American manufacturer of household products, including Arm & Hammer baking soda and OxiClean. The company competes in a challenging market against giants like Procter & Gamble and Colgate-Palmolive. Recently, Read Michael, the Executive Vice President of International, made a significant insider purchase of 3,000 shares of CHD at $92.07 each, boosting his total holdings to 5,505 shares.

Despite this insider confidence, Church & Dwight faces several challenges that impact its valuation. The company holds a rating due to declining growth prospects. In Q1 2025, it reported a decrease in net sales by 2.4%, with organic sales dropping by 1.2%, primarily due to a 1.4% fall in volume. This downturn is linked to a weakening US consumer environment and retailer destocking efforts.

Tariff headwinds further dampen Church & Dwight's growth outlook, with no immediate signs of recovery. The company's financial metrics reflect these challenges, showcasing a high P/E ratio of 38.96, indicating that investors are paying a premium for its earnings. The price-to-sales ratio stands at 3.71, and the enterprise value to sales ratio is 3.90, suggesting a high valuation relative to sales. Additionally, the enterprise value to operating cash flow ratio is 21.95, indicating potential overvaluation based on its cash flow. Despite these concerns, Church & Dwight maintains a current ratio of 1.95, demonstrating its ability to cover short-term liabilities with short-term assets. The earnings yield is 2.57%, reflecting the return on investment for shareholders.

Church & Dwight Co., Inc. (NYSE: CHD) Reports Strong Financial Results

  • Church & Dwight Co., Inc. (NYSE:CHD) matched its estimated earnings per share (EPS) of $0.77 and surpassed revenue expectations with approximately $1.582 billion in the fourth quarter of 2024.
  • The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing.
  • Global online sales accounted for 21.4% of total consumer sales in 2024, highlighting a significant shift towards e-commerce.

Church & Dwight Co., Inc. (NYSE:CHD), a prominent player in the consumer products industry, is known for its wide range of household and personal care products. Competing with other major brands in the Zacks Consumer Products - Staples industry, Church & Dwight reported earnings per share (EPS) of $0.77 on January 31, 2025, matching the estimated EPS. The company generated revenue of approximately $1.582 billion, surpassing the estimated revenue of about $1.565 billion.

In the fourth quarter of 2024, Church & Dwight reported strong financial results, with net sales reaching $1.582 billion, a 3.5% increase from the previous year. This performance exceeded the Zacks Consensus Estimate of $1.563 billion. The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing. These factors contributed to the company's ability to surpass revenue expectations.

The company's quarterly adjusted earnings were $0.77 per share, aligning with the Zacks Consensus Estimate and reflecting an 18.5% increase from the previous year. This improvement highlights the strength of Church & Dwight's brands, successful new product launches, and a continued focus on execution. The company has consistently outperformed consensus EPS estimates in three of the past four quarters, showcasing its ability to deliver strong financial performance.

Church & Dwight's global online sales accounted for 21.4% of total consumer sales in 2024, indicating a significant shift towards e-commerce. The company has made strategic brand investments to position itself for future growth. CEO Matthew Farrell expressed satisfaction with the results, emphasizing the strength of the company's brands and the success of new products. Volume was the primary driver of organic growth, a trend expected to continue into 2025.

The company's financial metrics reflect its strong market position. With a price-to-earnings (P/E) ratio of approximately 44.20, the market has high expectations for Church & Dwight's future earnings growth. The debt-to-equity ratio of 0.41 indicates a relatively low level of debt compared to equity, suggesting a conservative capital structure. Additionally, the current ratio of approximately 1.70 demonstrates the company's good liquidity to cover short-term liabilities.

Church & Dwight Co., Inc. (NYSE: CHD) Reports Strong Financial Results

  • Church & Dwight Co., Inc. (NYSE:CHD) matched its estimated earnings per share (EPS) of $0.77 and surpassed revenue expectations with approximately $1.582 billion in the fourth quarter of 2024.
  • The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing.
  • Global online sales accounted for 21.4% of total consumer sales in 2024, highlighting a significant shift towards e-commerce.

Church & Dwight Co., Inc. (NYSE:CHD), a prominent player in the consumer products industry, is known for its wide range of household and personal care products. Competing with other major brands in the Zacks Consumer Products - Staples industry, Church & Dwight reported earnings per share (EPS) of $0.77 on January 31, 2025, matching the estimated EPS. The company generated revenue of approximately $1.582 billion, surpassing the estimated revenue of about $1.565 billion.

In the fourth quarter of 2024, Church & Dwight reported strong financial results, with net sales reaching $1.582 billion, a 3.5% increase from the previous year. This performance exceeded the Zacks Consensus Estimate of $1.563 billion. The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing. These factors contributed to the company's ability to surpass revenue expectations.

The company's quarterly adjusted earnings were $0.77 per share, aligning with the Zacks Consensus Estimate and reflecting an 18.5% increase from the previous year. This improvement highlights the strength of Church & Dwight's brands, successful new product launches, and a continued focus on execution. The company has consistently outperformed consensus EPS estimates in three of the past four quarters, showcasing its ability to deliver strong financial performance.

Church & Dwight's global online sales accounted for 21.4% of total consumer sales in 2024, indicating a significant shift towards e-commerce. The company has made strategic brand investments to position itself for future growth. CEO Matthew Farrell expressed satisfaction with the results, emphasizing the strength of the company's brands and the success of new products. Volume was the primary driver of organic growth, a trend expected to continue into 2025.

The company's financial metrics reflect its strong market position. With a price-to-earnings (P/E) ratio of approximately 44.20, the market has high expectations for Church & Dwight's future earnings growth. The debt-to-equity ratio of 0.41 indicates a relatively low level of debt compared to equity, suggesting a conservative capital structure. Additionally, the current ratio of approximately 1.70 demonstrates the company's good liquidity to cover short-term liabilities.

Church & Dwight Co., Inc. (NYSE:CHD) Surpasses Q3 Earnings and Revenue Estimates

  • Church & Dwight Co., Inc. (NYSE:CHD) reported a third-quarter earnings per share (EPS) of $0.79, beating the estimated $0.68.
  • The company's revenue reached approximately $1.51 billion, surpassing the forecasted $1.50 billion.
  • CHD's financial health is highlighted by a debt-to-equity ratio of roughly 0.53 and a current ratio of approximately 1.62.

Church & Dwight Co., Inc. (NYSE:CHD) is a well-known consumer goods company that specializes in household and personal care products. The company is recognized for its strong brand portfolio, which includes Arm & Hammer, Trojan, and OxiClean. CHD competes with other major players in the consumer goods industry, such as Procter & Gamble and Colgate-Palmolive.

On November 1, 2024, CHD reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.79, which exceeded the estimated $0.68. This performance also marked an improvement from the $0.74 EPS reported in the same quarter last year. The company's revenue reached approximately $1.51 billion, surpassing the estimated $1.50 billion, as highlighted by Zacks Investment Research.

The impressive financial results are driven by strong consumer demand and the resilience of CHD's brands. The successful launch of new products also contributed to the company's growth. CHD's ability to adapt and meet consumer needs has been a key factor in its recent financial performance, as discussed during the earnings conference call attended by analysts from major financial institutions.

CHD's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 46.60, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 4.24, while the enterprise value to sales ratio is around 4.48, reflecting the company's valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of roughly 0.53, indicating a moderate level of debt. CHD's current ratio of approximately 1.62 suggests a strong liquidity position, enabling it to cover short-term liabilities effectively. The enterprise value to operating cash flow ratio is about 24.65, providing insight into the company's valuation compared to its cash flow from operations.

Church & Dwight Co., Inc. (NYSE:CHD) Surpasses Q3 Earnings and Revenue Estimates

  • Church & Dwight Co., Inc. (NYSE:CHD) reported a third-quarter earnings per share (EPS) of $0.79, beating the estimated $0.68.
  • The company's revenue reached approximately $1.51 billion, surpassing the forecasted $1.50 billion.
  • CHD's financial health is highlighted by a debt-to-equity ratio of roughly 0.53 and a current ratio of approximately 1.62.

Church & Dwight Co., Inc. (NYSE:CHD) is a well-known consumer goods company that specializes in household and personal care products. The company is recognized for its strong brand portfolio, which includes Arm & Hammer, Trojan, and OxiClean. CHD competes with other major players in the consumer goods industry, such as Procter & Gamble and Colgate-Palmolive.

On November 1, 2024, CHD reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.79, which exceeded the estimated $0.68. This performance also marked an improvement from the $0.74 EPS reported in the same quarter last year. The company's revenue reached approximately $1.51 billion, surpassing the estimated $1.50 billion, as highlighted by Zacks Investment Research.

The impressive financial results are driven by strong consumer demand and the resilience of CHD's brands. The successful launch of new products also contributed to the company's growth. CHD's ability to adapt and meet consumer needs has been a key factor in its recent financial performance, as discussed during the earnings conference call attended by analysts from major financial institutions.

CHD's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 46.60, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 4.24, while the enterprise value to sales ratio is around 4.48, reflecting the company's valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of roughly 0.53, indicating a moderate level of debt. CHD's current ratio of approximately 1.62 suggests a strong liquidity position, enabling it to cover short-term liabilities effectively. The enterprise value to operating cash flow ratio is about 24.65, providing insight into the company's valuation compared to its cash flow from operations.

What to Expect From Church & Dwight’s Upcoming Q1 Earnings?

RBC Capital shared its outlook on Church & Dwight (NYSE:CHD) ahead of the upcoming Q1/23 earnings report, scheduled to be released on April 27.

The analysts expect Q1 organic sales growth of 1.6% (in line with the Street estimates) and EPS of $0.76 (vs. Street’s $0.77) and see a modest upside to numbers.

The analysts expect another quarter of household strength driven by the company’s value brands and an improving supply chain. They expect the company’s troubled spots to remain a drag but less than in previous quarters. On the flip side, the company’s recent acquisitions are doing very well (Hero/Therabrush).

The analysts expect a gross margin expansion of 10 bps in the quarter to 42.7%. The company expects gross margin inflection into expansion territory this quarter following the past 10 quarters of contraction.