Church & Dwight Reports Decline in Revenue and Profitability for Q2 and First Half of 2025

Church & Dwight Co., Inc. reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the previous year. For the three months ended June 30, 2025, the company recorded net sales of $1,506.3 million, a slight decrease of 0.3% from $1,511.2 million in the same period of 2024. The six-month figures also reflected a decline, with net sales totaling $2,973.4 million, down 1.4% from $3,014.5 million. Gross profit for the second quarter was $647.0 million, down 9.1% year-over-year, while net income fell to $191.0 million, a decrease of 21.5% from $243.5 million in the prior year.

The company's operational performance was impacted by several factors, including increased costs associated with exiting certain product lines, specifically the Flawless, Spinbrush, and Waterpik showerhead businesses, which generated approximately $170 million in net sales in 2024. The company recorded a pre-tax charge of $51.0 million in the second quarter related to these exits, which included non-cash charges for impairments of intangible and fixed assets. Additionally, Church & Dwight faced challenges from rising manufacturing costs, unfavorable pricing, and a decline in sales volumes in its Consumer Domestic segment.

Strategically, Church & Dwight has been active in acquisitions and restructuring. The company completed the acquisition of Graphico, Inc. in June 2024, which is expected to enhance its presence in the Asia-Pacific region. More recently, on July 16, 2025, the company announced the acquisition of Touchland Holding Corp for $700 million, aimed at expanding its product offerings in the hand sanitizer market. The company also entered into an accelerated share repurchase agreement in May 2025, purchasing $300 million worth of its own shares, reflecting its commitment to returning value to shareholders.

Operationally, the company reported a decrease in customer engagement metrics, with net sales in its Consumer Domestic segment falling by 1.4% in the second quarter. The Consumer International segment, however, saw a 5.3% increase in net sales, driven by strong performance in HERO® acne treatment products and THERABREATH® mouthwash. The Specialty Products Division experienced a decline in sales, attributed to the exit of certain product lines. As of June 30, 2025, the company had cash and cash equivalents of $923.2 million, with total assets amounting to $8.79 billion.

Looking ahead, Church & Dwight anticipates continued challenges from market conditions, including inflation and supply chain disruptions. The company is focused on mitigating these impacts through strategic business decisions, including the exit from underperforming product lines and potential partnerships in its vitamin business. The company remains committed to enhancing its operational efficiency and maintaining its market position amid evolving economic conditions.