Church & Dwight sees FY25 adjusted EPS growth 0%-2%

Rick Dierker, Chief Executive Officer, stated, “In an environment of economic uncertainty, we remain focused on profitably growing our market shares across our portfolio. We are encouraged by the sequential improvements in category growth and we believe the consumption of our brands will outpace category growth over time fueled by investments in our brands and innovation. Our outlook reflects our strong underlying operating fundamentals that have fueled our results in line with our Evergreen model. We expect 2025 reported sales growth of approximately 0 to 2% which includes the addition of the Touchland acquisition and the impact of lower sales from the businesses we are exiting. We continue to expect organic sales growth of approximately 0 to 2%.1 While category consumption has improved, there remains uncertainty around the US consumer and global economies. Full year reported gross margin is expected to be 44% and includes the costs associated with the three business exits. We continue to expect adjusted gross margin to contract 60 basis points versus 2024 as we expect tariffs, elevated input costs, and unfavorable price and mix to outpace incremental productivity and higher margin acquisition impacts. Our 2025 expected tariff impact has not changed materially over the past 90 days as we continue to expect approximately $30M of costs. On a 12-month basis, the current tariff impact is approximately $60M which we will act to mitigate through supply chain and targeted pricing actions over the next 12 months. In line with our Evergreen Model target, marketing as a percentage of sales is expected to be approximately 11%, as we will continue to invest in our brands and innovation. We continue to expect adjusted SG&A as a percentage of sales to be lower versus 2024 while investing in our international and ecommerce business. We now expect other expense for 2025 to be approximately $65M. Our adjusted tax rate is expected to be approximately 23%. We continue to expect full year Adjusted EPS growth for 2025 of 0 to 2%2. This outlook includes the Touchland acquisition, the cost of the product recall and the wind-down of the three exited brands. The adjusted EPS outlook does not include pre-tax charges of approximately $51M, from our three exited businesses.”