Church & Dwight sees FY25 adjusted EPS $3.49, consensus $3.48

Rick Dierker, CEO, stated, “In an environment of economic uncertainty and cautious consumers, we remain agile and focused on profitably growing our market shares across our portfolio. We are encouraged by growth within our categories, and we believe our brands will outpace category growth due to our steady investments in innovation and our brands. We remain focused on execution and offering products to consumers that provide performance at a great value. Overall, our outlook has improved in several areas. We now expect higher 2025 reported sales growth of approximately 1.5%, previously midpoint of 1.0%, which primarily reflects the strong momentum from our TOUCHLAND brand which more than offsets lower sales from the strategic business exits. We remain on track to deliver 2025 organic sales growth of approximately 1%,previously midpoint of 1.0% . Full year reported gross margin is expected to improve to 44.2%, including the costs associated with the three business exits. We expect adjusted gross margin to contract only 40 basis points versus 2024 as we expect tariffs, elevated input costs, and unfavorable price and mix to be largely mitigated by incremental productivity and benefits of our higher margin acquisition. We continue to drive progress with tariff mitigation through supply chain and targeted pricing actions. Our 2025 expected tariff impact is now a headwind of approximately $25M and on a 12-month basis, the current tariff impact has been reduced to $25M. In past years, when we have stronger than expected business performance, we often increased our marketing investment to accelerate growth in future years. Similarly in 2025, we now expect marketing as a percentage of sales will exceed 11%, as we invest in our brands to drive momentum going into 2026. We continue to expect adjusted SG&A as a percentage of sales to be lower versus 2024. We continue to expect other expense for 2025 to be approximately $65M. Our adjusted tax rate is now expected to be approximately 22.5%.”