10-QPeriod: Q2 FY2026

CHURCH & DWIGHT CO INC /DE/ Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 31, 2026For Securities:CHD

Summary

Church & Dwight Co., Inc. reported solid performance for the second quarter and first six months of 2026. Net sales saw a modest increase of 1.6% for the quarter and 0.9% for the year-to-date period, driven by volume growth and favorable pricing/product mix, partially offset by the exit of certain product lines. The company successfully expanded its gross margin by 240 basis points in the quarter and 200 basis points year-to-date, benefiting from productivity programs and favorable acquisitions, despite ongoing inflationary pressures. Profitability improved, with income from operations increasing by 5.6% for the quarter and 1.9% year-to-date. Diluted EPS rose 9.0% for the quarter to $0.85 and 6.0% year-to-date to $1.76. The company also completed the acquisition of the Miss Mouth's Messy Eater® brand, further strengthening its consumer product portfolio. Liquidity remains strong, with significant availability under its revolving credit facility and commercial paper program. Management expects continued operational strength and sufficient cash flow to fund operations, dividends, and share repurchases.

Key Highlights

  • 1Net sales increased by 1.6% to $1,530.0 million for the three months ended June 30, 2026, and by 0.9% to $2,999.3 million for the six months ended June 30, 2026.
  • 2Gross profit increased by 7.2% to $693.9 million for the quarter and by 5.3% to $1,375.3 million for the six-month period, with gross margin expanding by 240 basis points and 200 basis points, respectively.
  • 3Income from operations grew 5.6% to $276.4 million for the quarter and 1.9% to $567.4 million year-to-date.
  • 4Diluted earnings per share (EPS) increased by 9.0% to $0.85 for the quarter and by 6.0% to $1.76 for the six-month period.
  • 5The company successfully acquired the Miss Mouth's Messy Eater® brand for $300.0 million cash, supplementing its consumer product offerings.
  • 6Marketing expenses as a percentage of net sales increased slightly to 10.8% for the quarter and 10.2% year-to-date, reflecting increased investment in brands and new products.
  • 7Selling, General & Administrative (SG&A) expenses as a percentage of net sales increased to 16.5% for the quarter and 16.8% year-to-date, driven by acquisition-related costs and investments in growth initiatives.

Frequently Asked Questions

Church & Dwight Co., Inc. demonstrated a positive financial performance in the second quarter of 2026, with net sales increasing by 1.6% year-over-year to $1,530.0 million. Gross profit saw a significant rise of 7.2% to $693.9 million, leading to improved gross margins. Income from operations grew by 5.6% to $276.4 million, and diluted earnings per share increased by 9.0% to $0.85, indicating effective cost management and strong operational execution.

The acquisition of the Miss Mouth's Messy Eater® brand, completed on May 28, 2026, for $300.0 million cash, contributed to the company's net sales and will support future growth. While the acquisition incurred expenses, particularly within SG&A, management believes it aligns with the company's strategy and is expected to enhance its consumer product portfolio. The impact is reflected in the increased SG&A expenses and specific line items related to acquisition costs for the period.

The increase in marketing expenses as a percentage of net sales is attributed to higher investment in brands, new product development, innovation initiatives, and organic growth. SG&A expenses saw a more significant rise, largely due to acquisition-related costs from the Touchland and Miss Mouth's acquisitions, as well as focused investments in e-commerce, international business expansion, and other new growth initiatives.

Church & Dwight is actively managing inflationary pressures and supply chain disruptions, including those related to geopolitical events like the Middle East conflict and U.S. trade policies. Mitigation strategies include implementing productivity programs, strategic pricing adjustments, supplier diversification, exploring alternative logistics, and exiting certain business lines. These efforts have helped in partially offsetting higher manufacturing and logistics costs and improving gross margins.