Church & Dwight Q1 Net Sales $1.469B, Organic Sales Grow 5.0%
CHD•Church & Dwight’s Q1 net sales rose 0.2% to $1,469.3M, topping its 1% decline outlook, with organic sales up 5.0%, gross margin expanding 140bps to 46.4% and adjusted EPS rising to $0.95. Domestic organic growth was 5.4%, international 3.7% and Specialty Products 3.1%, while e-commerce reached 24% of sales.
1. Q1 Results Exceed Expectations
Church & Dwight delivered Q1 net sales of $1,469.3 million, a 0.2% increase that topped its projected 1% decline outlook, driven by 5.0% organic growth and a 140 basis point expansion in gross margin to 46.4%. Adjusted EPS climbed to $0.95, above the company’s $0.92 projection.
2. Division Performance and E-Commerce Growth
Domestic organic net sales grew 5.4%, driven by volume gains across ARM & HAMMER, OXICLEAN and THERABREATH, while international organic sales rose 3.7%, led by THERABREATH, HERO and BATISTE brands. Specialty Products posted 3.1% organic growth, and e-commerce sales now represent 24% of total consumer revenue.
3. Margin Expansion and Expense Investments
Gross margin improvement was underpinned by higher volume, productivity gains and favorable mix from acquisitions, partially offset by inflation and tariffs. Marketing expense reached $139.4 million, and adjusted SG&A expense totaled $239.4 million or 16.3% of net sales, up 110 basis points due to amortization and Touchland acquisition costs.
4. Cash Flow, Balance Sheet and Outlook
The company generated $174.8 million in operating cash flow and invested $31.9 million in capital expenditures in Q1, leaving $503.4 million in cash against $2.2 billion of debt. Full-year operating cash flow is forecast at $1.15 billion, supported by ongoing innovation and planned new product launches.
