Q1 2025 Church & Dwight Co Inc Earnings Call Transcript
Key Points
- Church & Dwight Co Inc (CHD) gained market share in 9 of its 14 major brands, with over 80% of its business growing volume share in Q1.
- Online sales have grown significantly, now accounting for nearly 23% of global sales.
- Adjusted EPS for Q1 was $0.91, beating the company's outlook by $0.01.
- The company is taking strategic actions to reduce tariff exposure by approximately 80%, including no longer sourcing Waterpik flossers from China for the US market.
- International business delivered sales growth of 2.7% in Q1, with organic sales increasing by 5.8% due to higher volume.
- Organic sales decreased by 1.2% in Q1, falling short of the company's outlook due to retail destocking and weakening consumer demand.
- The Gummy Vitamin business continues to be a drag on organic growth, with consumption down 19% despite the category growing 4.8%.
- The company revised its full-year organic growth outlook to 0% to 2%, down from a previous 3% to 4%, due to a weaker US consumer.
- First quarter adjusted gross margin decreased by 60 basis points from a year ago, impacted by commodity inflation and higher manufacturing costs.
- Full-year adjusted EPS growth is now expected to be 0% to 2%, down from a previous view of 7% to 8%, primarily due to lower sales outlook and tariff pressures.
Good morning, ladies and gentlemen, and welcome to the Church & Dwight first quarter 2025 earnings conference call. Before we begin, I've been asked to remind you that on this call, the company's management may make forward-looking statements regarding, among other things, the company's financial objectives and forecasts. These statements are subject to risks and uncertainties and other factors that are described in detail in the company's SEC filings.
I would now like to introduce your host for today's call, Mr. Rick Dierker, President and Chief Executive Officer of Church & Dwight. Please go ahead, sir.
All right. Good morning, everyone. Thanks for joining us today. I'll begin with some thoughts on the macro environment and review our Q1 results. And then I'll turn the call over to Lee McChesney, our new CFO. When Lee is done, we'll open the call up for questions.
As you read in the release, we have several topics to discuss this morning,
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