Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Investor Day (January 2025)
165 slides from Church & Dwight's investor day presentation, Jan 31, 2025
Slide 1: Church & Dwight Co., Inc. 2025 Analyst Day
CHURCH & DWIGHT CO., INC. 2025 ANALYST DAY
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending inflation; sufficiency of cash flows from operations; earnings per share; cost savings
Slide 3: Welcome
Welcome Matt Farrell Chairman, President & Chief Executive Officer
Slide 4: Who Will Be Presenting Today
Who Will Be Presenting Today Matt Farrell Rick Dierker Stacey Ramstedt Carlos Linares Chairman, President and CEO-elect, Chief Financial Chief Marketing Officer EVP, Chief Chief Executive Officer Officer and Head of Technology Officer Business Operations and Global New Products Innovation Surabhi Po
Slide 5: Today's Agenda
Today’s • Who We Are Agenda • 2024 Financial Performance • A Look Ahead • U.S. Story • New Products & Innovation • International Story • Digital Acceleration • Specialty Products Division • How We Run the Company • 2025 Outlook 5
Slide 6: 2025 is the 35th Anniversary of CHD Listing on the NYSE
2025 is the 35th Anniversary of CHD Listing on the NYSE Volume $106.77** First NYSE Initial Listing August 15, 1990 Trade Day 26,175,804 16,500 Aug 15, 1990 Shares of January 29, 2025 Common Stock 1,500,081 $0.97* 6 *Adjusted for Stock Splits **As of January 29, 2025
Slide 7: 2025 is the 35th Anniversary of CHD Listing on the NYSE
2025 is the 35th Anniversary of CHD Listing on the NYSE An investor who purchased $1,000 of CHD stock at IPO Matt Farrell Chairman of the Board and Chief Executive Officer February 2024 grow to approximately Dwight C. Minton Chairman of the Board and $114,300 today. Chief Executive Officer August 15
Slide 8: A Look Back at 2024
A Look Back at 2024 • Exceeded organic sales growth algorithm across all 3 businesses. • Five of seven Power Brands increased their market share. • Marketing spend over 11% of sales. • Innovation contributed to 50% of the Company’s total growth in 2024. • Online sales accounting for over 21% of tota
Slide 9: A Look Back at 2024
A Look Back at 2024 • International expansion of the Hero brand in 40 countries. • Acquisition of a distributor in Japan. • SPD is now a perennial grower. • Generated $1.16 billion in cash from operations. • $960 million in cash on hand and a leverage ratio of 1.3. 9
Slide 10: Strong Performance in Total Shareholder Return
Strong Performance in Total Shareholder Return 10 YEAR 5 YEAR 3 YEAR 2 YEAR 2024 11.7% 9.5% 1.8% 14.7% 11.7% 2025 Analyst Day 10
Slide 11: Who We Are
Who We Are
Slide 12: Church & Dwight's Business Segments
Church & Dwight’s Business Segments 77% 18% 2024 Domestic International Total Company Net Sales $6.1B 5% Specialty Products Division 2025 Analyst Day 12
Slide 13: Power Brands
POWER BRANDS 13
Slide 14: 7 Power Brands
more than 70% of sales & profits are represented by these 7 POWER BRANDS 14
Slide 15: Evergreen Model
Evergreen Model Domestic: 3% Organic Sales +4% International: 8% SPD: 5% Gross Margin +25 to +50 bps Marketing ~11%, higher YOY $ SG&A -25 to 0 bps Operating Margin +50 bps EPS Growth +8% Organic sales and adjusted EPS are non-GAAP measures.. Refer to the Appendix for a reconciliation to the most di
Slide 16: We Have a Winning Formula
We Have a Winning Formula A Balanced and Diversified Portfolio Low Private Label Exposure Online Success Strong and Consistent Innovation Acquisitive Company 2025 Analyst Day 16
Slide 17: A Balanced and Diversified Portfolio
A Balanced and Diversified Portfolio 5% SPD 46% Household 2024 49% Personal Care 2025 Analyst Day 17
Slide 18: Product Portfolio of Both Value and Premium Products
Product Portfolio of Both Value and Premium Products 36% 64% Value Premium 2025 Analyst Day 18
Slide 19: Consistent Low Private Label Exposure
Consistent Low Private Label Exposure Weighted Average Private Label Share of Our Categories 15% 10% 5% 0% 2020 2021 2022 2023 2024 Source: Circana; Total US – MULO. 2025 Analyst Day 19
Slide 20: eCommerce Continues to Accelerate for our Brands
eCommerce Continues to Note: update Accelerate for our Brands % of Global Church & Dwight Consumer Net Sales 21% 2% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Analyst Day 20
Slide 21: Category Leading Innovation
Category Leading Innovation Half of the Company’s 4% growth in 2024 came from new products 21
Slide 22: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily High growth Asset Leverage Deliver #1 or #2 and high margin light C&D sustainable share brands that are manufacturing, competitive brands fast moving logistics and advantage consumables purchasing 22
Slide 23: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $6.1 $ Billions $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 2025 Analyst Day 23
Slide 24: Rick Dierker
Rick Dierker CEO-Elect, Chief Financial Officer and Head of Business Operations
Slide 25: 2024 Financial Performance
2024 Financial Performance 25
Slide 26: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Q4 OUTLOOK ACTUALS (as of November 1) Net Sales Growth +1.5% to 2.5% +3.5% Domestic: 2.7% Organic Sales +2% to 3% +4.2% International: 9.6% SPD: 10.3% Adjusted Gross Margin flat flat Adjusted EPS $0.76, +17.0% $0.77, +18.5% Organic sales and adjusted gross margin and adj
Slide 27: FY 2024 Financial Highlights
FY 2024 Financial Highlights FY OUTLOOK ACTUALS (as of November 1) Net Sales Growth +3.5% +4.1% Domestic: 3.5% Organic Sales +4.0% +4.6% International: 9.0% SPD: 7.1% Adjusted Gross Margin +110 bps +110 bps Marketing 11.0%+ 11.4% Adjusted EPS +8.0% +8.5% Cash from Operations ~$1.1B $1.16B Organic sa
Slide 28: A Look Ahead
A Look Ahead 28
Slide 29: We have confidence in our future
We have confidence in our future. Evergreen model Expanding Sustainable high Consistent Digitally savvy Focus on is healthy household International innovation domestic and penetration in growth rate international the U.S. M&A 2025 Analyst Day 29
Slide 30: We Have a Strong Track Record of Growth
We Have a Strong Track Record of Growth Behind A&H and Acquired Brands…and Acquisitions Expect to Continue. $6.1 Net Sales $ Billions $1.0 2000 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: Trojan, Nair and First Response acquired in two parts – 2001
Slide 31: U.S. Story
U.S. Story 31
Slide 32: US Domestic Sales Evergreen Target
US Domestic Sales Evergreen Target: +3% 3% United States 4% 8% International 5% Specialty Products 2025 Analyst Day 32
Slide 33: U.S. Consumer Domestic Organic Sales Performance
U.S. Consumer Domestic Organic Sales Performance 10.7% We Are Leaders In Growing Categories We Thrive In 5.7% Difficult Environments 4.3% 4.0% 3.6% 3.5% Evergreen 3.0% 3.1% Target: 2.0% 3.0% 1.4% Acquisitions 0.9% Have Room To Run 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Organic sales
Slide 34: Our Power Brands Fuel Our Growth
Our 7 Power Brands Fuel Our Growth 34
Slide 35: Power Brands Compete in Healthy, Growing Categories
These 7 Power Brands Compete in 8 Healthy, Growing Categories in the U.S: 2020 2021 2022 2023 2024 Laundry Clumping Litter Stain Fighters VMS Gummy Dry Shampoo Power Flossing Mouthwash Acne Weighted Average: 2.7% Source: Circana; Total US – MULO; YTD 2024 data through 12.29.2024 2025 Analyst Day 35
Slide 36: Brand Scorecard: Gaining Share in 2024
Brand Scorecard 5 of 7 Gaining Share in 2024 2019 2020 2021 2022 2023 2024 Arm & Hammer Oxiclean Stain Fighters VMS Batiste Waterpik TheraBreath Hero 4 of 5 5 of 7 5 of 7 5 of 7 4 of 7 5 of 7 Source: Circana; Total US – MULO; YTD 2024 data through 12.29.2024 2025 Analyst Day 36
Slide 37: Fabric Care
Fabric Care 37
Slide 38: Liquid Laundry Detergent
Liquid Laundry Detergent $ Consumption Change vs. YAG 2024 2.0% 1.3% Category Arm & Hammer Source: Circana: Total US – Multi Outlet; L52 WE 12.29.24 2025 Analyst Day 38
Slide 39: Arm & Hammer Laundry: Converting and Retaining Consumers
Arm & Hammer Laundry: Converting and Retaining Consumers Over the Long Term All-time share Liquid Laundry Dollar Share high 2006 - 2024 14.6% 5.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Circana: Total US – Multi Outlet; A&H Liquid Laund
Slide 40: Arm & Hammer Laundry Architecture: Good, Better, Best
Arm & Hammer Laundry Architecture Good, Better, Best Good Better Best 2025 Analyst Day 40
Slide 41: Cat Litter
Cat Litter 41
Slide 42: Clumping Litter
Clumping Litter $ Consumption Change vs. YAG 2024 2.1% 2.1% Category Arm & Hammer Source: Circana: Total US – Multi Outlet; L52 WE 12.29.24 2025 Analyst Day 42
Slide 43: A&H Litter: Consistent Share Gains Through Innovation
A&H Litter: Consistent Share Gains Through Innovation Clumping Litter Dollar Share 2020 - 2024 24.7% 23.2% 2020 2021 2022 2023 2024 Source: Circana Total US – Multi Outlet; A&H Clumping Litter. 2024 Dollar Share as of 12.29.2024 2025 Analyst Day 43
Slide 44: Lightweight Fair Share is a $100MM Opportunity
Lightweight Fair Share is a $100MM Significant Opportunity A&H Share Of Clumping Litter Segment 28.5% 7.4% 3.9% Lightweight Lightweight Traditional Weight Source: Circana: Total US – Multi Outlet as of 12.31.2024 2023 2024 2024 2025 Analyst Day 44
Slide 45: Acne
Hero. Acne
Slide 46: Total Acne
Total Acne $ Consumption Change vs. YAG 2024 41.9% 8.6% Category Hero Source: Circana: Total US – Multi Outlet; L52 WE 12.29.24 2025 Analyst Day 46
Slide 47: Hero: All Time Share High Achieved in 2024
Hero: All Time Share High Achieved In 2024 All-time share #1 Total Acne Dollar Share high ACNE BRAND 2020 - 2024 21.7% 1.2% 2020 2021 2022 2023 2024 Source: Circana: Total US – Multi Outlet Total Acne. 2024 Dollar Share as of 12.29.2024 2025 Analyst Day 47
Slide 48: Hero Still Has Lots Of Room To Run
Hero Still Has Lots Of Room To Run Average Weekly TDP Household Penetration 2.2x Acne Treatment Category 2020 20.4% 0.9% 2021 21.8% 3.1% 2022 21.7% 4.7% 2023 23.9% 7.3% Average Weekly TPD -5.8% 50.5% -16.4% 2024* 25.5% 8.7% % Chg vs YA Sources: L: Circana: Total US – Multi Outlet L52 WE 12.29.24; R:
Slide 49: Mouthwash
——_sheraBreath. Mouthwash
Slide 50: Mouthwash
Mouthwash $ Consumption Change vs. YAG 2024 41.6% 7.6% Category TheraBreath Source: Circana; Total US – Multi Outlet; L52 WE 12.29.24 2025 Analyst Day 50
Slide 51: TheraBreath: All Time Share High Achieved In 2024
TheraBreath: All Time Share High Achieved In 2024 All-time #1 #2 share Total Mouthwash Dollar Share high NON- MOUTHWASH ALCOHOL 2020 - 2024 17.6% 3.9% 2020 2021 2022 2023 2024 Source: Circana: Total US – Multi Outlet; Total Mouthwash. 2024 Dollar Share as of 12.29.2024 2025 Analyst Day 51
Slide 52: TheraBreath Still Has Lots Of Room To Run
TheraBreath Still Has Lots Of Room To Run Average Weekly TDP Household Penetration 2.2x Mouthwash Category 1.8x 2020 65.7% 2.6% 2021 64.4% 3.2% 2022 62.0% 4.5% 2023 63.6% 7.6% Average Weekly TPD 4.5% -0.4% 26.2% 2024* 64.8% 10.2% % Chg vs YA Sources: L: Circana; Total US – Multi Outlet L52 WE 12.29.
Slide 53: TheraBreath is #2 Total Mouthwash Brand
TheraBreath is #2 Total Mouthwash Brand TheraBreath Dollar Share grew +4.1pts vs. YAG 25.0 20.0 18.9 20.1 17.9 15.0 #3 Brand 10.0 5.0 6.9 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '22 '22 '22 '2
Slide 54: Dry Shampoo
Dry Shampoo 54
Slide 55: Dry Shampoo
Dry Shampoo $ Consumption Change vs. YAG 2024 8.6% 8.8% Category Batiste Source: Circana: Total US – Multi Outlet; L52 WE 12.29.24 2025 Analyst Day 55
Slide 56: Batiste: All Time Share High Achieved in 2024
Batiste: All Time Share High Achieved in 2024 All-time share #1 Dry Shampoo Dollar Share high Dry Shampoo 2020 - 2024 46.5% 36.7% 2020 2021 2022 2023 2024 Source: Circana: Total US – Multi Outlet; Dry Shampoo. 2024 Dollar Share as of 12.29.2024 2025 Analyst Day 56
Slide 57: Vitamins
Vitamins 57
Slide 58: Gummy VMS Category Doubled in Three Years and is Now Relatively Flat
Gummy VMS Category Doubled in Three Years and is Now Relatively Flat Total Gummy Category Consumption Dollars (in Millions) & % Change YOY +20.6% +1.8% -0.6% -0.1% +58.1% +16.5% $3,078 $3,137 $3,117 $3,114 $2,548 $1,540 2019 2020 2021 2022 2023 2024 L52wks Source: Circana: Total US – Multi Outlet; C
Slide 59: Vitamins: VMS Gummy Category
Vitamins VMS Gummy Category $ % Chg vs. YAG $ % Chg vs. YAG 2.3% 1.6% -0.5% -0.1% -3.4% -12.1% -12.2% -13.3% -13.4% -16.3% Q1 24 Q2 24 Q3 24 Q4 24 CY Q1 24 Q2 24 Q3 24 Q4 24 CY 2024 2024 Source: Circana: Total US – Multi Outlet; VMS Gummy 2025 Analyst Day 59
Slide 60: VMS Consumer Led Innovation
VMS Consumer Led Innovation NEW AND POWER PLUS SUGAR FREE IMPROVED MULTIVITES EXPANSION FORMULA 60
Slide 61: New Products
New Products Stacey Ramstedt Chief Marketing Officer
Slide 62: Leveraging Year One Success Story in Year Two
Leveraging Year One Success Story in Year Two Contributed to both The fastest growing Grew over 10x rate of category and brand branded Sheets in 2024 Lightweight segment growth 62
Slide 63: Free & Clear Continues To Be A Consistently Growing Category
Free & Clear Continues To Be A Consistently Growing Category Free & Clear $ Sales: Dollar Share by Benefit 2019 - 2024 Sensitive (millions) Original 13.9% $1,280 38.6% $1,173 $1,028 Odor $880 Removal $836 $868 13.3% No Stated Benefit 10.5% All Others 6.5% Plus Hygienic Softener Stain Fighting 2.8% 8
Slide 64: Introducing A&H Deep Clean Free & Clear Detergent
INTRODUCING Our Most Powerful A&H DEEP CLEAN Free & Clear Formula Yet! FREE & CLEAR DETERGENT 0% dyes, parabens, phosphates or fragrance SkinSAFE® Certified 100%. The ultimate benchmark for sensitive skin. Arm & Hammer is the exclusive laundry carrier of SkinSAFE certification on pack* Launching in
Slide 65: Introducing A&H Power Sheets Fragrance Free
INTRODUCING Fragrance Free Power A&H POWER SHEETS Sheets FRAGRANCE FREE Dermatologist Tested. No Dyes. No Perfumes. Leave the Mess Behind. No Drips. No Spills. No Heavy Plastic Bottles. Ultra-Concentrated Sheets Made with the Same Ingredients as Liquid Laundry Detergent Launching in 2025 65
Slide 66: Introducing A&H Plant Power
INTRODUCING 100% Plant Based A&H PLANT POWER Clumping Litter Highly Absorbent Grain Formula creates compact clumps for Powerful Odor Control Super Clean & Dry for Launching in Pet Channel in 2025 66
Slide 67: Introducing Vitafusion New & Improved Formula
INTRODUCING Upgraded Taste VITAFUSION Experience NEW & IMPROVED FORMULA Across the ENTIRE LINE. Chewy, Fruity, and Delicious. New Heat-Resistant Formula and Softer Chew A Burst of Flavor and Smooth, Velvety Texture with every Bite. Multivites now with 10% more Vitamin A, C, & E Launching in 2025 67
Slide 68: Introducing Vitafusion Power Plus Multivites
INTRODUCING Advanced Formula VITAFUSION A boost to your multivitamin POWER PLUS MULTIVITES Our most advanced formula with 100% DV or More of 10 Essential Ingredients Adult Multi with Calcium Women’s Multi with Choline Men’s Multi with CoQ10 Launching in 2025 68
Slide 69: Vitafusion: Sugar-Free Segment Offers Growth Opportunity
Vitafusion: Sugar-Free Segment Offers Growth Opportunity Vitafusion Study Opportunity Sugar is the biggest barrier preventing Rapid growth in sugar-free gummy non-users from using gummies. segment $429 $284 38% 31% Do not like $186 Do not take sugar in $154 gummies vitamins 2021 2022 2023 2024 Sourc
Slide 70: Expanding Vitafusion Sugar Free Portfolio
EXPANDING VITAFUSION SUGAR FREE PORTFOLIO Same Great Taste, Even More Sugar Free Now more than 60% of Vitafusion Sales will be available in Sugar Free variants * * * Launching in 2025 70
Slide 71: Introducing Hero Mighty Patch Body
INTRODUCING The XXL Pimple Patch HERO MIGHTY PATCH BODY Designed to fit breakouts on your chest, back, and butt Because acne doesn’t just happen on your face Unique notches help adhere to curved parts of the body. Launching in 2025 71
Slide 72: Introducing Batiste Light Dry Shampoo
INTRODUCING Some Days Call for a BATISTE Lighter Dry Shampoo LIGHT DRY SHAMPOO New lighter dry shampoo experience designed to attract new users and new need states! No white residue Lightweight feel & finish Soft, subtle scent Launching In 2025 72
Slide 73: Exciting Innovations Ahead in 2025
Exciting Innovations Ahead in 2025
Slide 74: Innovation
Innovation Carlos Linares Chief Technology Officer and Global New Products Innovation
Slide 75: Increased Innovation Sources Creating Stronger Pipelines
Increased Innovation Sources Creating Stronger Pipelines Third Party Five Paths to Innovation FutureWorks Partners (2022) (2018) Connect Diverse Competencies Classic NPD New Sources contribute White Space (2022) more than 50% Pipeline Open Innovation (2018) 2025 Analyst Day 75
Slide 76: Intentional in our Choices to Drive Growth
Intentional in our Choices to Drive Growth Unique C&D Framework Balanced Innovation (Commercial to Transformational) More Transformational Innovations Bigger Bets 2025 Analyst Day 76
Slide 77: Driving Innovation Growth to 1.5% - 2.0% INS
Driving Innovation Growth to 1.5% - 2.0% INS Accelerating INS Incremental Net Sales as a % of Sales 1.5- 2.0% 1.5%-2.0% (Historically 1% - 1.5%) 3.7 X 1.0%-1.5% in incremental dollars 2024 Best Ever NPD Launch 2024+ 2025 Continued Momentum Pre-2023 2025 Analyst Day 77
Slide 78: Global Network and Reach
Global Network and Reach 7 Global Centers clear category owners 6 Regional Sites ONE R&D Organization 2025 Analyst Day 78
Slide 79: International
International Michael Read EVP, President Consumer International & Specialty Products Division
Slide 80: International Organic Sales Evergreen Target
International Organic Sales Evergreen Target: +8% 3% United States 4% 8% International 5% Specialty Products 2025 Analyst Day 80
Slide 81: International Sales By GMG & Subsidiaries
International Sales By GMG & 6 Subsidiaries 37% 27% Canada Global Markets 2024 Group 12% International UK Net Sales 8% Mexico ~$1.1B 7% 3% 6% Australia France Germany 2025 Analyst Day 81
Slide 82: Broad Based Growth in Q4, 2024
Broad Based Growth in Q4, 2024 Improving Service Levels +5% Strong growth across all Subsidiaries and GMG with improving portfolio mix Acceleration and +19% expansion of recent acquisitions 2025 Analyst Day 82
Slide 83: 2024 Organic - Consistent Quarterly Growth
2024 Organic - Consistent Quarterly Growth 9.3% 9.6% 8.8% 9.0% Evergreen 8.1% Target: 8.0% Q1 Q2 Q3 Q4 Full Year Organic sales is a non-GAAP measures. Refer to the Appendix for a reconciliation to the most directly comparable GAAP measures. 2025 Analyst Day 83
Slide 84: International Consumer Organic Sales Performance
International Consumer Organic Sales Performance 10.0% 9.2% 9.0% 8.6% 8.5% 8.1% 7.8% 7.8% 5.0% 2.8% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comparable GAAP measure. 2025 Analyst Day
Slide 85: Geographic Expansion: International Runway Ahead
Geographic Expansion….International Runway Ahead % of % of U.S. Domestic International Sales Sales Top 10 CPG Company 41% 59% AVG% Church & Dwight 82% 18% 2025 Analyst Day 85
Slide 86: Brands Consumers Love that Travel the Globe
Brands Consumers Love that Travel the Globe U.S. Brand and International OTC Acquisition Acceleration and Rapid Leveraging NPD & Personal Care Global Expansion 2025 Analyst Day 86
Slide 87: International Presence is Expanding
International Presence is Expanding 12 40 50+ Countries in Countries by Countries by 2023 end of 2024 end of 2025! 87
Slide 88: Celebrating 50 years, 90 countries
90 countries Sold in Celebrating 50 years 3-year CAGR of +16% #1 brand in key markets 88
Slide 89: Winning NPD From the World's #1 Dry Shampoo Brand
Winning NPD From the World’s #1 Dry Shampoo Brand +34%-55% incrementality 89
Slide 90: Accelerating Growth of OxiClean Internationally
Accelerating Growth of OxiClean Internationally #1 Powder Stain 5 YEAR 3 YEAR 1 YEAR Remover 17% 18% 20% Japan Power Liquid launch in Japan 90
Slide 91: Launched in International Markets in 2024
Launched in 12 International markets in 2024! Already the #1 laundry sheet on Amazon Mexico 25+ global markets by the end of 2025 91
Slide 92: Investing for Growth in International
Investing for Growth in International • Acquired Graphico in Japan • Implemented a Global ERP System • Widened Regulatory & IT Infrastructure • Expanded Offices in Panama and Singapore • Rapidly expanded acquisitions (Hero & TheraBreath) • Added M&A International Resources 2025 Analyst Day 92
Slide 93: Digital Acceleration
Digital Acceleration Surabhi Pokhriyal Chief Digital Growth Officer
Slide 94: Our Strategy Is Working
OUR STRATEGY IS WORKING… …AND OUR TEAM MAKES IT HAPPEN!
Slide 95: eCommerce Continues To Accelerate Growth For Us
eCommerce Continues To Accelerate Growth For Us % Of Global Church & Dwight Consumer Net Sales 20% 21% 15% 16% 13% 8% 7% 5% 2% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Analyst Day 95
Slide 96: Power Brands Growing Online Share
4 of 7 Power Brands Growing Online Share 70% of Sales Driven by 8 of 14 major brands Record Online Shares Arm & Hammer Laundry TheraBreath, Nair, Zicam 96
Slide 97: Achieving Results: Our Approach
Achieving Results: Our Approach 1 2 3 Connect Embed and Extend our Content & Apply AI to Ecommerce Commerce Creative Global Footprint 97
Slide 98: Connect Content & Commerce
1 Connect Content & Commerce Leveraging the Power of Social Turning Engagement into Growth 4,000 INFLUENCERS (2.6% ER) 90% SHOPPABLE MEDIA 490MM REACH Alix Earle x Hero Suni Lee x Batiste Austin Li x Batiste 98
Slide 99: Embed and Apply AI to Creative
2 Embed and Apply AI to Creative Scale End-to-End Media Optimizations: Embed & Apply AI to Creative Illustration 2 Content that’s Content that is Fit Across Platforms Fit for Platform 100% 100% 75% to 100% Optimized for TikTok Optimized TikTok You Tube Score Asset Score Asset Score 99
Slide 100: Evolve Digital Capabilities & Measurement: AI for Digital Shelf
Evolve Digital Capabilities & Measurement: AI for Digital Shelf Best in Class Partnerships INSTANT Speed to Insights 100
Slide 101: Extend Our Global Footprint
3 Extend Our Global Footprint NO. 1 PRODUCT LAUNCHES by retailers NO. 1 101
Slide 102: Keep Up the Fast Pace!
Keep Up the Fast Pace! Scale & Accelerate Digital Growth Profitable Sales & Global Digital Penetration Competitive Capabilities Share Growth: & Category Leadership: Across the Org: • Industry leading YoY • Successful Global • Amplify Growth With 3rd eCommerce Growth Launches Party Partnerships • Unp
Slide 103: Specialty Products
Specialty Products Shitij Chabba President, Specialty Products
Slide 104: SPD Organic Sales Evergreen Target
SPD Organic Sales Evergreen Target: +5% 3% United States 4% 8% International 5% Specialty Products 2025 Analyst Day 104
Slide 105: Specialty Products Division (SPD)
Specialty Products Division (SPD) 62% Animal 2024 Nutrition SPD Net Sales ~$300MM 38% Specialty Chemicals 2025 Analyst Day 105
Slide 106: Specialty Products Division is Comprised of 3 Businesses
Specialty Products Division is Comprised of 3 Businesses Animal Nutrition Performance Products B2B CHURCH & DWIGHT ANALYST DAY 2025 106
Slide 107: Specialty Products Division is Comprised of 3 Businesses
Specialty Products Division is Comprised of 3 Businesses Animal Nutrition Performance Products B2B CHURCH & DWIGHT ANALYST DAY 2025 107
Slide 108: Specialty Products Division is Comprised of 3 Businesses
Specialty Products Division is Comprised of 3 Businesses Animal Nutrition Performance Products B2B CHURCH & DWIGHT ANALYST DAY 2025 108
Slide 109: SPD Organic Sales
SPD Organic Sales 12.0% 7.1% Evergreen 5.3% Target: 3.7% 5.0% 0.4% -3.4% -3.3% -7.9% 2017 2018 2019 2020 2021 2022 2023 2024 Global Divested Non- Portfolio Marketing & Expansion – Strategic Assets Strategy Innovation Eurasia & LATAM 2025 Analyst Day 109
Slide 110: Brand Marketing & Innovation Acceleration – Animal Nutrition
Brand Marketing & Innovation Acceleration Across Businesses – Animal Nutrition Innovative Proprietary Probiotic Solutions 2025 Analyst Day 110
Slide 111: Animal Nutrition: Growing International Presence
Animal Nutrition: Growing International Presence International Organic Sales 28% +7% Organic Sales Growth vs 2023 <6% 2015 2024 2025 Analyst Day 111
Slide 112: Specialty Products – Growth Accelerators
Specialty Products – Growth Accelerators Portfolio Strategy 5% International Expansion Evergreen – Eurasia & LATAM Organic Growth Target Marketing & Innovation CHURCH & DWIGHT ANALYST DAY 2025 112 112
Slide 113: How We Run the Company
How We Run the Company 113
Slide 114: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 115: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 116: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 117: Climate Is More Relevant Than Ever, Especially For Younger Consumers
Climate Is More Relevant Than Ever, Especially For Younger Consumers 67% make a sustainable planet their top priority. Datapoints shown for Gen Z Source: Pew Research Center, survey April 20-29, 2021; NCP survey, 2021 117
Slide 118: Church & Dwight's Environmental Heritage
Church & Dwight’s Environmental Heritage 2023 - 1888 1907 1970s 2017 2018 present Company Company Sole sponsor of Partnering 100% of global Commenced introduces institutes the first Earth Day. with the electricity projects for pro- use of Arbor Day demand offset Science Based environmental recycled
Slide 119: 1888: Promoting the Importance of Preserving the Environment
1888: Promoting the Importance of Preserving the Environment 2025 Analyst Day 119
Slide 120: A&H Bird Cards….Available on eBay!
A&H Bird Cards….Available on eBay! 2025 Analyst Day 120
Slide 121: Our ESG Score Remains High
Our ESG Score Remains High 2022 CCC B BB BBB A AA AAA 2023 CCC B BB BBB A AA AAA 2024 CCC B BB BBB A AA AAA 2025 Analyst Day 121
Slide 122: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 123: Industry Leading Revenue Per Employee
Industry Leading Revenue Per Employee $1,061 Revenue per Employee (in ‘000s) CHD CLOROX PG Kenvue COLGATE KIMBERLY RECKITT EDGEWELL NEWELL Source: Most recent SEC filings 2025 Analyst Day 123
Slide 124: Digital Savvy Talent
Note: update Digital Savvy Talent % of Global Church & Dwight Consumer Net Sales 21% 2% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Analyst Day
Slide 125: Simple Compensation Structure
Simple Compensation Structure Net Revenue Bonuses are tied 100% to business results. Strategic Gross Margin Initiatives Management is required to Expansion be heavily invested in company stock. Cash EPS From Operations 2025 Analyst Day 125
Slide 126: All Employees Focus On Gross Margin
All CHURCH & DWIGHT Employees Focus On Gross Margin 20% Gross margin is of all employees’ annual bonus. 2025 Analyst Day 126
Slide 127: Key Gross Margin Growth Drivers
Key Gross Margin Growth Drivers Good to Supply Chain Great Cost Optimization Optimization Acquisition New Products Synergies 2025 Analyst Day 127
Slide 128: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 129: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales 5.4% 3.8% 3.3% 2.8% 2.9% 2.5% 2.5% 2.3% 2.1% 2.1% 2.0% ~2% ~2% 1.8% 1.7% 1.4% 1.4% 1.2% $135 $64 $77 $75 $67 $71 $62 $50 $45 $60 $74 $99 $119 $179 $224 $180 $130 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 130: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 131: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $6.1 $ Billions $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. Outlook as of August 2, 2024. 2025 Analyst Day 131
Slide 132: 2025 Outlook
2025 Outlook 132
Slide 133: FY 2025 Financial Outlook
FY 2025 Financial Outlook 2025 OUTLOOK Reported Sales Growth +2.5% to +3.5% Domestic: 2-3% Organic Sales Growth +3% to +4% International: 7-8% SPD: 5% Gross Margin +25 bps Marketing 11%+ Adjusted SG&A LEVERAGE Operating Profit Margin +60 to +70 bps Other Expense ~$50M Effective Tax Rate ~23% Adjuste
Slide 134: Net Sales Growth: 10 Year History
Net Sales Growth: 10 Year History 12.3% 9.8% 9.2% 8.1% 10 Year Average: 6.0% 5.1% 2.5%-3.5% 6.4% 4.1% 3.6% 2.9% 2.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2025 Analyst Day 134
Slide 135: Organic Sales Growth: 10 Year History
Organic Sales Growth: 10 Year History Evergreen Target: 4.0% 9.6% 5.3% 3%-4% 10 Year 3.6% 4.3% 4.4% 4.3% 4.6% Average: 3.2% 4.3% 2.7% 1.4% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E Organic sales is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comp
Slide 136: Volume Trend Continues to Improve
Volume Trend Continues to Improve 8.1% 5.0% 3.4% 3.7% 3.3% 3.1% 1.0% 1.0% 0.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E -5.1% Outlook as of January 31, 2025 2025 Analyst Day 136
Slide 137: 2025 Focus On Adjusted Gross Margin
2025 Focus On Adjusted Gross Margin Evergreen Target: +25 to +50 bps +25 bps 2019 2020 2021 2022 2023 2024 2025E Outlook as of January 31, 2025 2025 Analyst Day 137
Slide 138: Gross Margin: 2024 vs. 2025
Gross Margin: 2024 vs. 2025 2024 2025E Price/Volume/Mix +100 bps +30 bps Manufacturing Costs (140) bps (150) bps Acquisition +10 bps - Productivity Programs +140 bps +145 bps Gross Margin Change +110 bps +25 bps 2025 Analyst Day 138
Slide 139: Manufacturing Cost Inflation Explained
Manufacturing Cost Inflation Explained 150 bps of gross margin impact from higher manufacturing costs Other Manufacturing Commodities Costs • Depreciation on New Oil Capacity Natural • Higher distribution costs 2025E Gas • Higher 3rd party manufacturing costs Ethylene • Labor costs HDPE PCR Diesel L
Slide 140: 2025 Marketing Spend Target
2025 Marketing Spend Target Evergreen Target: ~11%, higher YOY $ 11.0%+ 11.7% 11.8% 12.1% 11.1% 11.4% 10.9% 10.0% 2018 2019 2020 2021 2022 2023 2024 2025E Outlook as of January 31, 2025 2025 Analyst Day 140
Slide 141: 2025 Adjusted SG&A
2025 Adjusted SG&A Evergreen Target: -25 to 0 bps leverage 14.1% 13.6% 14.7% 14.9% 13.0% Return to leverage in line with Evergreen model while making growth investments behind International and Ecommerce 2020 2021 2022 2023 2024 2025E Note: Adjusted SG&A is a non-GAAP measure. Refer to the Appendix
Slide 142: Consistent Strong Adjusted EPS Growth
Consistent Strong Adjusted EPS Growth Evergreen Target: +8% +7 to 8% $3.44 $3.17 $3.02 $2.97 $2.83 $2.47 $2.27 $1.94 9.6% 17.0% 8.8% 14.6% 6.7% -1.7% 6.7% 8.5% 2017 2018 2019 2020 2021 2022 2023 2024 2025E Note: Adjusted EPS growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to
Slide 143: 2025 EPS Growth
2025 EPS Growth First Half / Second Half EPS Impacted By: 7% to 8% • Revenue growth higher in second half • Marketing as a percent of sales higher in the first half & lower in the second half • Tax rate higher in the first half & 1H 2H FY 25P lower in the second half Outlook as of January 31, 2025 2
Slide 144: "Best In Class" FCF Conversion
“Best In Class” FCF Conversion 10 Year Average: 119% 129% 131% 126% 126% 125% Elevated 123% Capex 116% 115% 103% 97% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Refer to the Appendix for a reconciliation to the most directly comparable GAAP measures. 2025 Analyst Day 144
Slide 145: Cash Conversion Cycle: Tight Control Of Working Capital
Cash Conversion Cycle: Tight Control Of Working Capital Drives Cash Conversion Cycle Improvement 52 40 36 34 32 32 27 27 28 22 22 days 21 19 18 18 14 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Analyst Day 145
Slide 146: Strong Balance Sheet
Strong Balance Sheet Credit Rating: A3/BBB+ Total Debt/Bank EBITDA 2.6x 2.2x 1.9x 1.9x 1.6x 2.1x 1.5x 1.4x 1.8x 1.4x 1.7x 1.4x 1.5x 1.5x 1.2x 0.7x 0.5x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E Note: Total debt/EBITA is a non-GAAP measure. Refer to the App
Slide 147: Significant Financial Capacity
Significant Financial Capacity (in $millions) Cash & Cash $965 Equivalents Acquisition Power: Leverage Capacity $5,100 $6.0B Current Debt • TTM Bank EBITDA = $1,520M Outstanding $2,225 • Example: Acquisition EBITDA multiple of 12x As of January 31, 2025 2025 Analyst Day 147
Slide 148: Prioritized Uses Of Free Cash Flow
Prioritized Uses Of Free Cash Flow 1 TSR-Accretive M&A 2 Capex For Organic Growth & G2G 3 New Product Development 4 Debt Reduction 5 Return Of Cash To Shareholders 2025 Analyst Day 148
Slide 149: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales 5.4% 3.8% 3.3% 2.8% 2.9% 2.5% 2.5% 2.3% 2.1% 2.1% 2.0% 1.8% ~2% ~2% 1.7% 1.4% 1.4% 1.2% $135 $64 $77 $75 $67 $71 $62 $50 $45 $60 $74 $99 $119 $179 $224 $180 $130 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 150: 4% Dividend Increase In 2025
4% Dividend Increase In 2025 $1.18 $1.09 $1.13 $1.01 $1.05 124 $0.96 $0.87 $0.91 $0.76 consecutive years of dividends +119% +7.0% +14.5% +4.6% +5.5% +5.2% +4.0% +4.0% +4.0% +4.0% +35% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025 Analyst Day 150
Slide 151: We have confidence in our future
We have confidence in our future. Evergreen model Expanding Sustainable high Consistent Digitally savvy Focus on is healthy household International innovation domestic and penetration in growth rate international the U.S. M&A 2025 Analyst Day 151
Slide 152: Over 18 Years of Leadership
Over 18 Years of Leadership 2017 2018 2019 2020 2023 2024
Slide 153: Church & Dwight Performance During Matt's Tenure
$billions $0 $1 $2 $3 $5 $6 $7 $4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 - PRESENT 2017 2018 2019 2020 2021 CHURCH & DWIGHT REVENUE 2022 2023 2024 $billions $0 $5 $10 $15 $20 $25 $30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 - PRESENT 2017 2018 2019 Church & Dw
Slide 154: Who from Management is with us today?
Who from Management is with us today? Matt Farrell Rick Dierker Chairman, President and CEO-elect, Chief Financial Officer & Chief Executive Officer Head of Business Operations Brian Buchert Shitij Chabba Kevin Gokey Rene Hemsey Carlen Hooker EVP, Strategy, M&A and President, Specialty EVP, Global C
Slide 155: Slide 155
Slide 156: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Church & Dwight Co., Inc.’s Reconciliation of Non-GAAP Measures: The following pages provide definitions of the non-GAAP measures used in this presentation and reconciliations of these non- GAAP measures to the most directly comparable GAAP measures. These non-GAA
Slide 157: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Organic Sales Growth The presentation provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes, from year-over-year comparisons. Management believes that the p
Slide 158: Reported & Adjusted Non-GAAP Reconciliations
Reported & Adjusted Non-GAAP Reconciliations Adjusted SG&A Reconciliation For the year ending December 31, 2024 2023 2022 2021 2000 2019 SG&A - Reported 21.0% 15.2% 20.8% 11.7% 12.1% 14.4% Brazil Charge 0.0% 0.0% 0.0% 0.0% 0.0% -0.2% Flawless Earnout Adjustment 0.0% 0.0% 0.0% 1.9% 1.9% -0.2% Flawles
Slide 159: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Earnings Per Share This presentation discloses reported EPS excluding the following, namely, earnings per share calculated in accordance with GAAP adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance.
Slide 160: Reported & Adjusted Non-GAAP Reconciliations
Reported & Adjusted Non-GAAP Reconciliations Adjusted EPS Reconciliation For the year ending December 31, 2024 2023 2022 2021 2020 2019 2018 2017 EPS - Reported $ 2.37 $ 3.05 $ 1.68 $ 3.32 $ 3.12 $ 2.44 $ 2.27 $ 2.90 Pension Settlement Charge $ - $ - $ - $ - $ - $ - $ - $ 0.12 Brazil Charge $ - $ -
Slide 161: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Free Cash Flow Free cash flow (a non-GAAP measure) is defined as cash from operating activities (a GAAP measure) less capital expenditures (a GAAP measure). Management views free cash flow as an important measure because it is one factor in dete
Slide 162: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Total Debt to Bank EBITDA Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income, interest
Slide 163: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Total Debt to Bank EBITDA, Continued Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income
Slide 164: Reconciliation of Non-GAAP Measures (Q4 2024)
Reconciliation of Non-GAAP Measures (Q4 2024) Organic Sales Growth Three Months Ended 12/31/2024 Total Worldwide Consumer Consumer Specialty Company Consumer Domestic International Products Reported Sales Growth 3.5% 4.1% 2.7% 10.2% -6.6% Less: Acquisitions 0.3% 0.4% 0.0% 2.0% 0.0% Add: FX / Other 0
Slide 165: Reconciliation of Non-GAAP Measures (Q4 2024)
Reconciliation of Non-GAAP Measures (Q4 2024) Adjusted Diluted Earnings Per Share Reconciliation Three Months Ended 12/31/2024 12/31/2023 Change Diluted Earnings Per Share - Reported $ 0.76 $ 0.62 22.6% Tariff Ruling - - Hero Restricted Stock 0.01 0.03 Diluted Earnings Per Share - Adjusted (non-GAAP