Church & Dwight (CHD) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 2.4% year-over-year to $1,467.1 million, with organic sales down 1.2% due to retailer destocking and weakening consumer demand; Consumer Domestic declined while International grew.

• Adjusted EPS was $0.91, down 5.2% year-over-year but slightly above guidance; reported EPS was $0.89.

• Strategic actions to exit or sell Flawless, Spinbrush, and Waterpik showerhead businesses, impacting ~$150 million in net sales and expecting a Q2 charge of $60–$80 million.

• Portfolio pruning and supply chain actions are expected to reduce tariff exposure by 80% over the next 12 months.

• Full-year organic growth and adjusted EPS outlook revised down to 0%-2% due to weak demand and retail destocking.

Financial highlights

• Q1 reported revenue was $1,467.1 million, down 2.4% year-over-year; organic sales down 1.2%.

• Adjusted gross margin was 45.1%, a 60 bps decrease; reported gross margin was 45.0%, down 70 bps.

• Marketing expenses were 9.3% of sales, down 80 bps year-over-year.

• Cash from operations was $185.7 million, down $77.3 million year-over-year.

• CapEx for Q1 was $16.5 million; full-year CapEx expected at $130 million.

Outlook and guidance

• Full-year 2025 organic revenue outlook lowered to 0%-2% from 3%-4%; adjusted EPS growth now expected at 0%-2%, down from 7%-8%.

• Full-year gross margin expected to contract 60 bps versus 2024, mainly due to tariffs.

• Q2 organic sales expected to be -2% to flat; adjusted EPS of $0.85, down 9% year-over-year.

• Cash flow from operations for 2025 estimated at $1.05 billion; capital expenditures expected at $130 million.

• Company maintains strong liquidity with $1,075 million cash and $1,494 million in available credit as of March 31, 2025.