Church & Dwight Q4 profit beats on marketing investments

Overview

• U.S. sodium bicarbonate producer's Q4 net sales grew 3.9%, meeting analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company completed divestiture of vitamin business, impacting organic sales growth

Outlook

• Company expects 2026 organic sales growth of approximately 3% to 4%

• Church & Dwight anticipates 2026 adjusted EPS growth of 5% to 8%

• Company forecasts 2026 adjusted gross margin expansion of approximately 100 basis points

Result Drivers

• VITAMIN BUSINESS EXIT - The exit from the vitamin business impacted organic sales growth, limiting it to 0.7% for the quarter

• PRODUCTIVITY PROGRAMS - Gross margin expansion driven by productivity programs, higher volumes, and favorable mix

• MARKETING INVESTMENTS - Incremental marketing investments contributed to adjusted EPS growth of 11.7%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the household products peer group is "buy"

• Wall Street's median 12-month price target for Church & Dwight Co Inc is $100.00, about 8.7% above its January 29 closing price of $91.96

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw1Fz6GQa

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