Church & Dwight Reports Q1 2025 Financial Results with Decrease in Net Sales and Income

Church & Dwight Co., Inc. reported its financial results for the first quarter of 2025, revealing a net sales figure of $1,467.1 million, a decrease of 2.4% compared to $1,503.3 million in the same period last year. The company's gross profit also declined to $659.6 million from $687.0 million, resulting in a gross margin of 45.0%, down from 45.7%. The decrease in net sales was attributed to lower product volumes sold, unfavorable foreign exchange fluctuations, and the exit of certain product lines, partially offset by favorable pricing and product mix.

In terms of profitability, net income for the quarter was $220.1 million, down from $227.7 million in the prior year, leading to diluted earnings per share of $0.89, a decrease of 4.3% from $0.93. The company reported a slight reduction in operating income to $295.3 million from $305.0 million, reflecting a decrease in operating margin to 20.2% from 20.3%. Marketing expenses were reduced by 10.1% to $136.6 million, while selling, general, and administrative expenses decreased marginally to $227.7 million.

Strategically, Church & Dwight has made significant moves, including the acquisition of Graphico, Inc., a Japan-based distributor, which is expected to enhance its presence in the Asia-Pacific region. The company also announced plans to take strategic actions regarding its Flawless, Spinbrush, and Waterpik showerhead businesses, which are projected to generate approximately $150 million in annual net sales. This decision is anticipated to incur a charge of $60 million to $80 million in the second quarter of 2025, primarily related to impairments of intangible and fixed assets.

Operationally, the company reported a cash balance of $1,074.5 million as of March 31, 2025, an increase from $964.1 million at the end of 2024. The total assets rose to $8,955.9 million, while total liabilities decreased to $4,404.9 million. The company’s employee headcount remained stable, and it continues to focus on managing working capital effectively, with a cash conversion cycle consistent with the previous year. Looking ahead, Church & Dwight anticipates that its cash from operations, combined with its borrowing capacity, will be sufficient to fund its share repurchase programs, pay dividends, and meet capital expenditure needs.