Church & Dwight Q1 2025 Earnings Report
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
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