Church & Dwight delivered a notably positive third quarter, with management attributing performance to broad-based share gains across both value and premium products. CEO Richard Dierker emphasized the success of ARM & HAMMER in value laundry, as well as strong growth from personal care brands like THERABREATH and HERO. The recent acquisition of TOUCHLAND, which exceeded early expectations in the hand sanitizer category, also contributed to the company’s outperformance. Dierker noted, "Our innovation is performing well and all in all, our brands are made for environments like this," highlighting the company’s ability to navigate a challenging consumer landscape with a balanced portfolio.
Is now the time to buy CHD? Find out in our full research report (it’s free for active Edge members).
Church & Dwight (CHD) Q3 CY2025 Highlights:
- Revenue: $1.59 billion vs analyst estimates of $1.53 billion (5% year-on-year growth, 3.3% beat)
- Adjusted EPS: $0.81 vs analyst estimates of $0.74 (9.9% beat)
- Adjusted EBITDA: $334.7 million vs analyst estimates of $312.2 million (21.1% margin, 7.2% beat)
- Revenue Guidance for Q4 CY2025 is $1.64 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the full year is $3.49 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 16.1%, up from -6.1% in the same quarter last year
- Organic Revenue rose 3.4% year on year vs analyst estimates of 1.5% growth (185.4 basis point beat)
- Market Capitalization: $20.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Church & Dwight’s Q3 Earnings Call
- Christopher Carey (Wells Fargo Securities) asked how TOUCHLAND's contribution might offset potential profit outcomes from actions in the vitamin business. CEO Richard Dierker highlighted TOUCHLAND's strong baseline and its ability to help balance any headwinds from vitamins.
- Bonnie Herzog (Goldman Sachs) pressed for detail on promotional spending and its effect on price/mix. Dierker explained that negative price/mix was primarily due to vitamins and value adjustments in BATISTE, not increased promotions in laundry or litter.
- Peter Grom (UBS) questioned the implied step down in Q4 and category growth assumptions. Dierker and CFO Lee McChesney attributed the Q4 outlook to port strike effects, vitamin seasonality, and discontinued product lines, not a shift in underlying demand.
- Andrea Teixeira (JPMorgan) inquired about price mix dynamics and the resilience of the value segment in laundry. Dierker noted the trend toward larger pack sizes and stable value share, while McChesney described FX benefits as nominal but supportive.
- Javier Escalante (Evercore ISI) asked why premium personal care brands are outperforming in the current environment. Dierker attributed this to problem-solution branding, social media engagement, and household penetration gaps, supporting future growth.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be monitoring (1) the continued integration and sales trajectory of TOUCHLAND, (2) household penetration and share gains for key brands like ARM & HAMMER and THERABREATH, and (3) progress on the strategic review and potential restructuring of the vitamin business. Execution of new product launches and navigation of evolving consumer value trends will also be important markers for sustained momentum.
Church & Dwight currently trades at $86.21, up from $81.77 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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