Church & Dwight Reports Q2 2025 Financial Results: Net Sales Decline, EPS Beats Expectations

Church & Dwight reported Q2 2025 financial results, with net sales down 0.3% and domestic sales decreasing by 1.4%. However, the company achieved an adjusted EPS of $0.94, surpassing its outlook. It completed the acquisition of TOUCHLAND hand sanitizer brand and announced strategic exits from FLAWLESS, SPINBRUSH, and WATERPIK showerhead businesses. Church & Dwight expects net sales growth between 0% to 2% and adjusted EPS growth within the same range for the remainder of 2025.

Church & Dwight Co., Inc. (NYSE: CHD) reported its second quarter (Q2) 2025 financial results, highlighting mixed sales performance and a strong adjusted earnings per share (EPS). The company reported a net sales decrease of 0.3% to $1,506.3 million, with domestic sales declining by 1.4% and international sales increasing by 5.3%. Organic sales grew by 0.1%, driven by volume gains partially offset by negative pricing and product mix.

The company's adjusted EPS for Q2 2025 was $0.94, exceeding its outlook of $0.85. The difference between reported EPS and adjusted EPS was primarily due to charges related to the announced business exits. The company also reported a cash from operations of $416.5 million for the first six months of 2025.

Church & Dwight completed the acquisition of TOUCHLAND hand sanitizer brand, which delivered strong growth in Q2. The company also announced strategic exits from FLAWLESS, SPINBRUSH, and WATERPIK showerhead businesses, recording pre-tax charges of approximately $51 million in the second quarter.

For the remainder of 2025, Church & Dwight expects net sales growth of approximately 0% to 2%, including the impact of the Touchland acquisition and the lower sales from the exited businesses. The company also expects organic sales growth of approximately 0% to 2%, with a full year reported gross margin of 44% and adjusted gross margin contraction of 60 basis points versus 2024.

The company expects adjusted EPS growth of 0% to 2% for 2025, including the Touchland acquisition, the cost of the product recall, and the wind-down of the three exited brands. The adjusted EPS outlook does not include pre-tax charges of approximately $51 million from the exited businesses.

For Q3 2025, Church & Dwight expects reported and organic sales growth of approximately 1% to 2%, with adjusted gross margin contraction of approximately 100 basis points due to inflation and tariff costs. The company expects Adjusted EPS of $0.72 per share, a decrease of 9% versus last year’s adjusted Q3 EPS.

The company's cash flow from operations outlook remains approximately $1.05 billion for 2025, reflecting a stronger performance in the second half of the year. Capital expenditures for 2025 are expected to be approximately $130 million.

Church & Dwight continues to pursue accretive acquisitions that meet its strict criteria, with an emphasis on fast-moving consumable products.

References:
[1] https://investor.churchdwight.com/Investors/news/news-details/2025/Church--Dwight-Reports-Q2-2025-Results/default.aspx