Church & Dwight Company, Inc. (CHD) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

among other things, the company's financial objectives and forecasts. These statements are subject to risk and uncertainties and other factors that are described in detail in the company's SEC filings. I would now like to introduce your host for today's call, Mr. Rick Durker, President and Chief Executive Officer of Church & Dwight. Please go ahead, sir. All right. Thank you. Good morning, everyone. Thanks for joining the call. I'll begin with a review of Q2 results. I'll speak to the touchdown closing, strategic actions, and some thoughts on the macro environment. Then I'll turn the call over to Lee McChesney, our CFO. When Lee is done, we'll open the call up for questions. First, I'll begin with Q2 results. Organic sales grew 0.1%, exceeding our outlook of minus two to flat. Adjusted gross margin was down 40 basis points, also exceeding our outlook range. Adjusted EPS was 94 cents, which was 9 cents higher than our 85-cent outlook. Lee will take you through the rest of the numbers shortly, but first some highlights from the quarter. When we gave our outlook back in May, we were seeing category consumption data that was showing a deceleration from strong growth early in the year to turning negative in early April. The good news is that since then, things have begun to improve with categories finishing positive in April and Q2 category consumption for our largest categories finishing around 2.5%. The macro environment has been volatile and uncertain with tariff policies changing frequently. The consumer uncertainty showed up in early Q2 when consumer confidence hit a 12-year low. Since then, consumer confidence levels have started to recover as tariff policy appeared to stabilize. Not surprisingly, given that backdrop, our second quarter sales finished slightly ahead...