Strong Organic Sales Growth
Organic sales increased 5.0% in Q1, above the company outlook of ~3%, driven by volume growth of 5.3% and partially offset by a negative price/mix of 0.3%.
Reported Sales Slightly Positive vs. Expectations
Reported net sales increased 0.2%, ahead of an expected decline; company noted reported sales would have been down ~8% absent organic growth, the Toppik acquisition and FX.
Expanded Gross Margin
Adjusted gross margin expanded 130 basis points year-over-year to 46.4%, driven by productivity programs, higher-margin acquisitions and favorable volume/mix.
EPS Beat and Growth
Q1 adjusted EPS was $0.95, up 4.4% year-over-year and above the company outlook of $0.92.
Category & Brand Strength — ARM & HAMMER
ARM & HAMMER laundry consumption grew 4.1% vs. category growth of 2.7%; ARM & HAMMER laundry sheets consumption grew ~30%; cat litter consumption rose 6.8% with share up 0.4 points to 24.6%.
Oral Care Momentum — TheraBreath & Hero
TheraBreath mouthwash share increased 3.5 points to 24.1%; TheraBreath toothpaste launch off to a strong start; Hero consumption outpaced its category, remaining the share leader and growing via distribution expansion and brand activations.
Distribution and Innovation Tailwinds
Company was #1 in CPG on total distribution points gained year-over-year; new product launches expected to account for ~50% of organic growth; e-commerce now represents ~24% of consumer sales.
Solid Cash Flow and Capital Discipline
Cash flow from operations was $174.8 million in Q1; capital expenditures were $31.9 million with full-year CapEx expected to be ~2% of sales.
Confident 2026 Outlook Reiterated
Reiterated full-year 2026 guidance: organic growth ~3%–4%, reported sales decline ~1.5% to 0.5% (from portfolio actions), gross margin expansion ~100 bps, and adjusted EPS growth of 5%–8%.