Church & Dwight Q1 Profits Dip Amid Rising Costs

Deep News
05/01

Focus: U.S. Stock Q1 2026 Earnings Reports The company reported a 5% increase in organic sales for the first quarter, surpassing its previous guidance of 3%.

Consumer goods company Church & Dwight (CHD) experienced a slight decline in first-quarter profit, attributed to rising costs that offset strong performance in its key business segments; however, overall revenue still exceeded the company's internal forecast.

The company announced on Friday that first-quarter net income dipped slightly to $216.3 million, or $0.91 per share. This compares to a net income of $220.1 million, or $0.89 per share, in the same period last year.

The company stated that the profit decrease was primarily due to increased marketing expenditures and higher costs and amortization expenses related to last year's $880 million acquisition of hand sanitizer company Touchland.

Adjusted earnings per share were $0.95, matching analyst expectations from FactSet.

Quarterly sales saw a marginal increase of 0.2%, reaching $1.47 billion. This figure surpassed market expectations of $1.46 billion and outperformed the company's own projection of a 1% year-over-year decline.

Church & Dwight reported that first-quarter organic sales grew by 5%, significantly exceeding the company's forecast of 3%. Growth was recorded across all three business segments: Domestic Consumer, International Consumer, and Specialty Products.

Increased volume was the primary driver of growth, though a slight decrease in average product price and changes in product mix had a minor negative impact on revenue growth.

For the full year, the company anticipates that annual net sales will decline between 0.5% and 1.5% compared to last year's $6.2 billion. Analysts, meanwhile, expect revenue to fall to $6.14 billion.

The company forecasts full-year organic sales growth of 3% to 4% and expects its adjusted gross margin to expand by 100 basis points.

Full-year earnings per share are projected to increase by 18% to 22%, with adjusted earnings per share expected to grow by 5% to 8%. The consensus analyst estimate for both metrics is $3.75 per share.

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