Q1 2026 Church & Dwight Co Inc Earnings Call Transcript
Key Points
- Church & Dwight Co Inc (CHD) reported a strong start to the year, exceeding expectations across key metrics with net sales increasing by 0.2% and organic sales growing by 5%.
- The company achieved a 130 basis point expansion in adjusted gross margin to 46.4%, and adjusted EPS rose by 4.4% year-over-year to $0.95, surpassing the $0.92 outlook.
- The US Consumer business saw a 5.4% increase in organic sales, driven primarily by volume, with strong performances from brands like THERABREATH, ARM & HAMMER, HERO, and OXICLEAN.
- Global e-commerce sales now represent approximately 24% of total consumer sales, highlighting the company's successful digital strategy.
- Church & Dwight Co Inc (CHD) achieved significant distribution gains, ranking number one across all of CPG in total distribution points gained year-over-year, which is expected to drive future growth.
- The macro environment remains dynamic with consumer sentiment pressured by inflation, borrowing costs, and geopolitical uncertainties, particularly in the Middle East.
- OXICLEAN's market share declined due to distribution loss and lapping from a large club retailer a year ago, although trends improved throughout the quarter.
- TOUCHLAND's sales were impacted by a strong Q4 holiday multipack sell-through, and recent consumption has slowed as the company laps year-ago launches.
- The international business faced challenges with lower Middle East regional sales, partially offsetting growth from other brands.
- The company anticipates $25 million to $30 million of incremental inflation pressure due to the Middle East conflict, impacting commodities and transportation costs.
Good morning, ladies and gentlemen, and welcome to the Church & Dwight's first-quarter 2026 earnings conference call.
Before we begin, I have 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. Thank you. Good morning, everyone. Thanks for joining the call. We had a fantastic quarter. I want to start off by thanking all of our Church & Dwight employees around the world on executing so well in a volatile environment. I'll begin with some thoughts on the macro environment and then a review of our Q1 results. Then I'll
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