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Mar 31
Church & Dwight Q1 2025 Earnings Report
Church & Dwight posted a modest performance in Q1 2025 with adjusted EPS slightly exceeding expectations despite revenue decline and weak domestic sales.
Key Takeaways
Church & Dwight's Q1 2025 results were mixed, as the company faced headwinds from slowing category growth and retailer inventory reductions, leading to a 2.4% revenue decline. Despite these challenges, adjusted EPS came in slightly above guidance at $0.91, and strong performance in International and Specialty segments provided some offset.
Revenue declined 2.4% year-over-year to $1.47B, mainly due to retailer destocking and slowing US consumption.
Adjusted EPS was $0.91, slightly above the company's $0.90 guidance.
Organic sales fell 1.2%, with strong growth in International and Specialty Products offset by Domestic weakness.
Company plans to exit underperforming businesses to reduce tariff exposure and refocus on core brands.
Church & Dwight
Church & Dwight
Church & Dwight Revenue by Segment
Church & Dwight Revenue by Geographic Location
Revenue by Segment
Household Products Revenue
CapyFin.comPersonal Care Products Revenue
CapyFin.comConsumer International Revenue
CapyFin.comSpecialty Products Division Revenue
CapyFin.comRevenue by Geographic Location
Consumer Domestic Revenue
CapyFin.com Forward Guidance
Church & Dwight expects 0% to 2% organic sales and adjusted EPS growth in 2025, down from earlier expectations, as the company faces slower category growth and no recovery from Q1 retailer destocking.
Positive Outlook
- Adjusted EPS slightly exceeded Q1 guidance.
- E-commerce sales represented 22.9% of consumer sales, showing strong digital growth.
- International organic sales growth of 5.8%, driven by subsidiaries.
- Strategic exit from low-margin businesses expected to reduce tariff exposure by 80%.
- New product innovations across HERO, ARM & HAMMER, and VITAFUSION to support growth.
Challenges Ahead
- Full-year organic sales growth downgraded to 0–2% from 3–4%.
- Adjusted gross margin now expected to contract 60bps, versus prior guidance of expansion.
- Retailer inventory reductions significantly impacted domestic sales.
- Tariff exposure remains a pressure point, despite mitigation plans.
- Slower category consumption growth continuing into Q2, with Q2 organic sales guidance of -2% to flat.
Revenue & Expenses
Visualization of income flow from segment revenue to net income