Church & Dwight Q2 Earnings Call Highlights

Church & Dwight exceeded Q2 expectations , with net sales up 1.6%, organic sales up 5.8% and adjusted EPS of $0.89. Growth was driven by 4.3% volume gains, market-share increases and successful innovation. Strong performance came from brands including TheraBreath, ARM & HAMMER, Hero and ZICAM, while the newly acquired Miss Mouth stain-remover brand showed more than 50% consumption growth and significant distribution potential. The company raised its full-year outlook : organic sales growth is now expected at 4%–5%, adjusted EPS growth at 6%–8%, gross-margin expansion at 100–120 basis points and operating cash flow at approximately $1.175 billion.

Church & Dwight NYSE: CHD reported second-quarter results that exceeded its prior outlook, driven by broad-based volume growth, market-share gains and contributions from innovation. The company raised its full-year sales, earnings and cash-flow outlook despite what management described as a dynamic operating environment marked by inflation, tariffs and transportation costs. Net sales increased 1.6% in the second quarter, while organic sales rose 5.8%, ahead of the company’s approximately 3% forecast. Organic growth was led by 4.3% volume growth and 1.5% from price and mix. Adjusted earnings per share were $0.89, above the company’s $0.88 outlook, while adjusted gross margin increased 40 basis points to 45.4%.

“Our brands continue to perform exceptionally well, driving a second straight quarter of industry-leading organic sales growth,” President and Chief Executive Officer Rick Dierker said. He said consumer spending remained resilient and the company’s categories were growing faster than initially expected.

Brand Performance and Innovation Domestic organic sales rose 5.1%, supported by growth in both household and personal-care products. Dierker highlighted TheraBreath mouthwash and toothpaste, Hero acne products, ARM & HAMMER cat litter and ZICAM as key contributors. Shield Your Portfolio From Aug. 1 Tariffs With This Low-Vol ETF ARM & HAMMER cat litter consumption increased 7.5% during the quarter, and market share rose 0.8 points to 24.5%. The company said its recently launched Dual Defense with Microban clumping litter continued to perform well. ARM & HAMMER laundry detergent consumption and category consumption each grew about 1%, despite heightened promotional activity among competitors and lower promotional spending by the company. TheraBreath gained 4.5 share points in mouthwash, reaching a 25.3% share and further strengthening its position as the No. 2 brand in total mouthwash, according to Dierker. The TheraBreath toothpaste launch reached a 1-point share in total toothpaste after entering brick-and-mortar stores more fully in recent months. Dierker said TheraBreath toothpaste was meeting or slightly exceeding expectations, aided by the performance of the mouthwash brand. He also pointed to low household penetration for TheraBreath—14%, compared with 65% for the mouthwash category—as an opportunity for additional growth. Hero’s consumption outpaced the acne patch category, while the company began introducing a cleanser product. Dierker said facial cleansers represent a $650 million category and approximately 30% of the acne category. Hero’s household penetration was 10%, versus 30% for the category. New product launches are expected to account for about half of Church & Dwight’s organic growth in 2026, management said. Global e-commerce sales grew 22.7% in the quarter and represented 25.5% of total consumer sales.

Miss Mouth Acquisition and International Growth Church & Dwight completed its acquisition of Mis...