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CHURCH & DWIGHT CO INC /DE/

CHD
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Business Summary

Church & Dwight Co., Inc. develops, manufactures, and markets a broad range of consumer household and personal care products and specialty products focused on animal and food production, chemicals, and cleaners. The company operates in three principal segments: Consumer Domestic, Consumer International, and the Specialty Products Division (SPD). The consumer products industry is characterized by high innovation, a continuous flow of new products and line extensions, and requires significant advertising and promotion. Competition is intense, with key competitors including Procter & Gamble Company, The Clorox Company, Colgate-Palmolive Company, S.C. Johnson & Son, Inc., Nestlé S.A., Haleon plc, Henkel, Reckitt Benckiser Group plc, LifeStyles Healthcare, Kenvue Inc., Pfizer Inc., Bayer AG, NBTY, Inc., Koninklijke Philips N.V., Unilever PLC, Sanofi, Edgewell Personal Care, Panoxyl, Starface, GOJO Industries, Inc., and Peach & Lily. The company's products are sold through a broad distribution platform including supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores, and websites and other e-commerce channels.

The company's primary competitive advantages are its well-recognized brands, particularly its seven designated 'power brands': ARM & HAMMER, OXICLEAN, BATISTE, WATERPIK, THERABREATH, HERO, and TOUCHLAND, which represent approximately 70% of net sales and profits. Prior to the sale of the VMS business at the end of 2025, VMS was included as an eighth power brand. The company competes primarily on the basis of product innovation and performance, brand recognition, price, value, and other consumer benefits. Many of its competitors have greater financial resources and the capacity to outspend the company. The company's largest customer, Walmart Inc. and its affiliates, accounted for approximately 23% of consolidated net sales in each of 2025, 2024, and 2023, and the top four customers accounted for approximately 44% , 43% , and 44% of net sales in 2025, 2024, and 2023, respectively.

The company generates revenue by manufacturing and marketing consumer household and personal care products and specialty products. Revenue is recognized when finished goods are received or picked up by customers. The business model is based on selling branded products through a multi-channel distribution network. The company's customer base includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores, and e-commerce channels. For specialty products, customers include industrial customers, livestock producers, and distributors. The company's seven power brands represent approximately 70% of net sales and profits.

The Consumer Domestic segment includes household and personal care products. In 2025, household products constituted approximately 54% of Consumer Domestic sales and approximately 41% of consolidated net sales. Primary household products include laundry detergents under the ARM & HAMMER, OXICLEAN, and XTRA brands, cat litter under the ARM & HAMMER brand, and household cleaning products under the CLEAN SHOWER, ORANGE GLO, and OXICLEAN brands. Personal care products constituted approximately 46% of Consumer Domestic sales and approximately 36% of consolidated net sales in 2025. These include condoms under the TROJAN brand (the number one condom brand in the U.S.), water flossers under the WATERPIK brand (the number one water flosser brand in the U.S.), home pregnancy test kits under the FIRST RESPONSE brand (the number two pregnancy test kit brand in the U.S.), hair-removal products under the NAIR brand (the number one depilatory in the U.S.), oral analgesics under the ORAJEL brand (the number one oral care pain relief in the U.S.), cold shortening and relief products under the ZICAM brand (the number one cold shortening brand in the U.S.), dry shampoo under the BATISTE brand (the world's number one dry shampoo brand), oral care products under the THERABREATH brand (the number one alcohol free mouthwash in the U.S.), acne treatment products under the HERO brand (the number one acne and acne patch brand in the U.S.), and hand sanitizers under the TOUCHLAND brand (the number one hand sanitizer brand in the U.S.).

The Consumer International segment markets personal care, household, and over-the-counter products in international subsidiary markets including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom, and exports to over 100 countries through its Global Markets Group. Total Consumer International net sales represented approximately 18% of consolidated net sales in 2025. Net sales of Consumer International originating in Europe, Canada, Australia, and Mexico accounted for 24% , 23% , 7% , and 8% , respectively, of 2025 international net sales in this segment. The Specialty Products Division (SPD) focuses on sales to businesses in three product areas: Animal Nutrition, Specialty Chemicals, and Commercial & Professional, and accounted for approximately 5% of consolidated net sales in 2025.

On July 16, 2025, the company completed the acquisition of Touchland Holding Corp, paying $656.0 million , net of cash acquired, at closing and agreeing to an additional cash payment of $159.0 million based on 2025 net sales thresholds. The company also granted rights to Touchland's founder to receive shares of common stock valued at $50.0 million . On May 1, 2025, the company announced it would exit the Flawless, Spinbrush, and Waterpik showerhead businesses, which generated approximately $118.0 million of annual net sales in 2025, recording a pre-tax charge of $45.6 million (post-tax of $34.5 million ). On December 9, 2025, the company announced a definitive agreement to sell the VitaFusion and L'il Critters brands, which was completed on December 31, 2025, incurring a one-time, pre-tax charge of $58.5 million (post-tax of $45.6 million ). During 2025, the company executed share repurchases totaling $900.0 million , including an accelerated share repurchase contract for $300.0 million and open market purchases. On January 28, 2026, the Board declared a 4.2% increase in the regular quarterly dividend from $0.295 to $0.3075 per share.

Net sales for the year ended December 31, 2025, grew 1.6% over 2024, reaching $6,203.2 million compared to $6,107.1 million in 2024. Gross margin decreased 100 basis points to 44.7% in 2025 from 45.7% in 2024. Operating margin increased 410 basis points to 17.4% in 2025 from 13.3% in 2024, with 2024 results including a non-cash charge of $357.1 million related to the impairment of the VMS business. Diluted net earnings per share in 2025 were $3.02 , an increase of approximately 27.4% from $2.37 in 2024. Cash provided by operations was $1,215.4 million in 2025, a $59.2 million increase from the prior year.

Business Outlook

A key growth vector is the expansion of the company's global footprint. The company has subsidiary operations in eight countries (Canada, Mexico, U.K., France, Germany, China, Australia, and Japan) and exports to over 100 other countries. The company believes ongoing international expansion represents a significant opportunity to grow its business, with approximately 18% of sales derived from countries outside of the United States in 2025. The company has announced long-term targets to accelerate core growth, including investing in international businesses with a focus on M&A to grow from $1 billion to $2 billion .

Another major growth vector is the company's focus on core growth and new product development. The company has announced long-term targets to increase Arm & Hammer from a $2 billion brand to a $3 billion brand and to drive global oral care expansion from $1 billion to $1.5 billion behind TheraBreath. The company intends to continue to develop and launch new and differentiated products, pursue strategic acquisitions, and maintain an offering of premium and value brand products. The Touchland acquisition, completed in July 2025, is expected to contribute to growth, with Touchland's annual net sales for the year ended December 31, 2024, being approximately $115.0 million .

The company's gross margin trajectory is influenced by several factors. In 2025, gross margin decreased 100 basis points to 44.7% from 45.7% in 2024, including costs associated with exiting businesses of 50 bps and an approximate 50 basis point benefit from tariff refunds in the prior year. Excluding these items, gross margin was flat year over year, with higher manufacturing costs including tariffs (net of mitigation actions), labor, and higher commodities of 180 bps offset by the impact of productivity programs of 160 bps and benefits from the Touchland Acquisition of 20 bps . The company continues to focus on tightly controlling its cost structure and implementing cost reduction programs.

The company's operational outlook includes a focus on managing its supply chain and manufacturing capacity. The company has increased qualified dual sources of materials to approximately 70% of its total spend on direct materials as part of its resilient supply focus. Capital expenditure program costs are expected to be approximately $130.0 million in 2026, including manufacturing capacity investments for TheraBreath and Sterimar and an ERP project. The company also continues to focus on reducing working capital requirements, with its cash conversion cycle decreasing eight days from the prior year to 20 days at December 31, 2025.

Capital allocation priorities include returning cash to stockholders through dividends and share repurchases, funding acquisitions, and making capital expenditures. In 2025, the company returned $1,187.2 million to stockholders with $900.0 million of share repurchases and $287.2 million of cash dividends paid. As of December 31, 2025, there remains $228.9 million of share repurchase availability under the 2021 Share Repurchase Program. On January 28, 2026, the Board declared a 4.2% increase in the regular quarterly dividend from $0.295 to $0.3075 per share, raising the annualized dividend payout from $287.0 million to approximately $291.0 million on an annualized basis.

A significant headwind is the impact of tariffs and trade policies. The company has experienced increased commodity cost volatility and economic uncertainty primarily due to changes in U.S. trade policies, including ongoing reviews and modifications to tariffs. The company has taken actions to mitigate the impact, including shifting production, relocating manufacturing operations, finding alternative sources of supply (most notably ceasing the import of substantially all Waterpik flossers and other products from China into the U.S.), potentially increasing prices, and adjusting inventories. The company believes its existing tariff cost exposure will be mitigated through these actions, future additional supply chain efforts, and surgical pricing.

Another constraint is the intense competitive environment and changing consumer preferences. The company faces intense competition from larger competitors with greater financial resources. There is significant price competition, particularly in laundry products, and retailers are increasingly offering private label brands. Consumer preferences continue to evolve due to factors including fragmentation of the consumer market, changes in consumer demographics, and shifting consumer behavior towards online shopping. The company's global WATERPIK business is experiencing customer distribution losses and a decline in consumer demand, mainly due to lower consumer spending and more customers choosing value brands amid inflation.

Risk Factors

The company faces intense competition from larger competitors with greater financial resources, which could outspend the company on advertising and promotional activities and introduce competing products more quickly. The loss of any principal customer, particularly Walmart, which accounted for approximately 23% of net sales in each of 2025, 2024, and 2023, could significantly decrease sales and profitability. Volatility and increases in the price of raw and packaging materials or energy costs could erode profit margins if the company is unable to pass along higher costs through price increases. The company has substantial indebtedness of approximately $2,205.0 million as of December 31, 2025, which could limit its ability to fund acquisitions, require a portion of cash flow for debt payments, and limit flexibility in reacting to adverse economic conditions. The company's global WATERPIK business is experiencing a decline in consumer demand and customer distribution losses, and as of October 1, 2025, the trade name's fair value was at 117% of its carrying value of $644.7 million , down from 135% in 2024, indicating a risk of future impairment if performance continues to decline.

Management Priorities

Management's message emphasizes the company's focus on strategic portfolio repositioning through business exits and acquisitions to devote greater focus to faster-growing value and premium product lines. Key themes include navigating global economic conditions and trade policies, particularly tariffs, through actions such as shifting production, relocating manufacturing, and finding alternative sources of supply. Management highlights the company's strong financial condition, experience operating in challenging environments, and continued focus on key strategic initiatives: maintaining competitive marketing and trade spending, managing cost structure, developing and launching new products, pursuing strategic acquisitions, and returning cash to stockholders. The company has announced long-term targets to accelerate core growth by increasing Arm & Hammer from a $2 billion brand to a $3 billion brand, driving global oral care expansion from $1 billion to $1.5 billion behind TheraBreath, and investing in international businesses with a focus on M&A to grow from $1 billion to $2 billion .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview of Business
  2. [2] Item 1, Business — Customers and Order Backlog
  3. [3] Item 7, MD&A — Other Items
  4. [4] Item 7, MD&A — Other Items
  5. [5] Item 7, MD&A — Other Items
  6. [6] Item 1, Business — Overview of Business
  7. [7] Item 1, Business — Consumer Domestic
  8. [8] Item 1, Business — Consumer Domestic
  9. [9] Item 1, Business — Consumer Domestic
  10. [10] Item 1, Business — Consumer Domestic
  11. [11] Item 1, Business — Consumer International
  12. [12] Item 1, Business — Consumer International
  13. [13] Item 1, Business — Consumer International
  14. [14] Item 1, Business — Consumer International
  15. [15] Item 1, Business — Consumer International
  16. [16] Item 1, Business — Specialty Products Division
  17. [17] Item 1, Business — Recent Acquisitions
  18. [18] Item 1, Business — Recent Acquisitions
  19. [19] Item 1, Business — Recent Acquisitions
  20. [20] Item 1, Business — Divestitures and Business Exits
  21. [21] Item 1, Business — Divestitures and Business Exits
  22. [22] Item 1, Business — Divestitures and Business Exits
  23. [23] Item 1, Business — Divestitures and Business Exits
  24. [24] Item 1, Business — Divestitures and Business Exits
  25. [25] Item 7, MD&A — Cash Flow Analysis
  26. [26] Item 7, MD&A — Cash Flow Analysis
  27. [27] Item 7, MD&A — Recent Developments
  28. [28] Item 7, MD&A — Recent Developments
  29. [29] Item 7, MD&A — Recent Developments
  30. [30] Item 7, MD&A — 2025 Financial Highlights
  31. [31] Item 8, Consolidated Statements of Income
  32. [32] Item 8, Consolidated Statements of Income
  33. [33] Item 7, MD&A — 2025 Financial Highlights
  34. [34] Item 7, MD&A — 2025 Financial Highlights
  35. [35] Item 7, MD&A — 2025 Financial Highlights
  36. [36] Item 7, MD&A — 2025 Financial Highlights
  37. [37] Item 7, MD&A — 2025 Financial Highlights
  38. [38] Item 7, MD&A — 2025 Financial Highlights
  39. [39] Item 7, MD&A — 2025 Financial Highlights
  40. [40] Item 8, Consolidated Statements of Income
  41. [41] Item 7, MD&A — 2025 Financial Highlights
  42. [42] Item 8, Consolidated Statements of Income
  43. [43] Item 7, MD&A — 2025 Financial Highlights
  44. [44] Item 7, MD&A — 2025 Financial Highlights
  45. [45] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  46. [46] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  47. [47] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  48. [48] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  49. [49] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  50. [50] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  51. [51] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  52. [52] Item 1, Business — Recent Acquisitions
  53. [53] Item 7, MD&A — 2025 Financial Highlights
  54. [54] Item 7, MD&A — 2025 Financial Highlights
  55. [55] Item 7, MD&A — 2025 Financial Highlights
  56. [56] Item 7, MD&A — 2025 Financial Highlights
  57. [57] Item 7, MD&A — 2025 Financial Highlights
  58. [58] Item 7, MD&A — 2025 Financial Highlights
  59. [59] Item 7, MD&A — 2025 Financial Highlights
  60. [60] Item 7, MD&A — 2025 Financial Highlights
  61. [61] Item 1, Business — Raw Materials and Sources of Supply
  62. [62] Item 7, MD&A — Liquidity and Capital Resources
  63. [63] Item 7, MD&A — Cash Flow Analysis
  64. [64] Item 7, MD&A — Cash Flow Analysis
  65. [65] Item 7, MD&A — 2025 Financial Highlights
  66. [66] Item 7, MD&A — 2025 Financial Highlights
  67. [67] Item 7, MD&A — 2025 Financial Highlights
  68. [68] Item 7, MD&A — Liquidity and Capital Resources
  69. [69] Item 7, MD&A — Recent Developments
  70. [70] Item 7, MD&A — Recent Developments
  71. [71] Item 7, MD&A — Recent Developments
  72. [72] Item 7, MD&A — Recent Developments
  73. [73] Item 7, MD&A — Recent Developments
  74. [74] Item 1, Business — Customers and Order Backlog
  75. [75] Item 1A, Risk Factors — Financial Risks
  76. [76] Item 7, MD&A — Critical Accounting Policies and Estimates
  77. [77] Item 8, Report of Independent Registered Public Accounting Firm
  78. [78] Item 7, MD&A — Critical Accounting Policies and Estimates
  79. [79] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  80. [80] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  81. [81] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  82. [82] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  83. [83] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  84. [84] Item 7, MD&A — Strategic Goals, Challenges and Initiatives
  85. [85] Item 8, Consolidated Statements of Income
  86. [86] Item 8, Consolidated Statements of Income
  87. [87] Item 8, Consolidated Statements of Income
  88. [88] Item 8, Consolidated Statements of Income
  89. [89] Item 8, Consolidated Statements of Income
  90. [90] Item 8, Consolidated Statements of Income
  91. [91] Item 8, Consolidated Statements of Income
  92. [92] Item 8, Consolidated Statements of Income
  93. [93] Item 7, MD&A — 2025 Financial Highlights
  94. [94] Item 7, MD&A — 2025 Financial Highlights
  95. [95] Item 8, Consolidated Statements of Cash Flow
  96. [96] Item 8, Consolidated Statements of Cash Flow
  97. [97] Item 8, Consolidated Balance Sheets
  98. [98] Item 1A, Risk Factors — Financial Risks
  99. [99] Item 1, Business — Divestitures and Business Exits
  100. [100] Item 1, Business — Divestitures and Business Exits
  101. [101] Item 1, Business — Divestitures and Business Exits
  102. [102] Item 1, Business — Divestitures and Business Exits
  103. [103] Item 7, MD&A — 2025 Financial Highlights
  104. [104] Item 7, MD&A — Segment results
  105. [105] Item 7, MD&A — Segment results
  106. [106] Item 7, MD&A — Segment results

Analysis on 6/21/2026