CHURCH & DWIGHT CO INC /DE/
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
CHD$109.33-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061624
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000950170-25-101235
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 65 previous paragraphs and 79 current paragraphs.
28 unchanged; 32 reworded; 18 added; 4 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
On August 1, 2025, we announced that we are performing a strategic review of our vitamin business. This review includes potential actions to streamline our supply chain to strengthen the core business, joint venture or other partnership opportunities, and divestiture options. We expect to reach a conclusion from this review by the end of 2025.
Current report
Accelerated Share Repurchase
Current report
In May 2025, the Company entered into an accelerated share repurchase ("ASR") contract with a commercial bank to purchase Common Stock. The Company paid $300.0 to the bank, inclusive of fees, and received an initial delivery of shares equal to $270.0, or 2.8 million shares at an average share price of $95.97. The 2.8 million shares were purchased under the evergreen share repurchase program. The Company used cash on hand to fund the initial purchase price. The remaining shares to be delivered by the bank will be determined by the average price per share paid by the bank during the purchase period and is expected to end in August of 2025.
Current report
One Big Beautiful Bill Act
Current report
On July 4, 2025, President Trump signed into law the legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” and commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The legislation includes several provisions that may impact the timing and magnitude of certain tax deductions. Key provisions include the permanent extension of several key elements of the 2017 Tax Cuts and Jobs Act, including 100% bonus depreciation and domestic research cost expensing. We are currently evaluating the impact of the provisions of the OBBBA on our financial position, results of operations and cash flows.
Current report
Touchland Acquisition
Current report
On July 16, 2025, we completed the acquisition of Touchland Holding Corp ("Touchland"), the developer of TOUCHLAND® hand sanitizer products (the "Touchland Acquisition"). The purchase price for the Touchland Acquisition was $700.0, subject to customary adjustments for cash and working capital acquired at closing, and is inclusive of rights granted to Touchland’s founder to receive shares of our common stock valued at $50.0, with 50% of such shares required to be issued following vesting at each of the first and second year anniversaries of the closing. The value of common stock received by Touchland's founder will be recognized as a compensation expense over the two-year vesting period. Payment of a $5.0 portion of the purchase price was deferred related to certain indemnification obligations provided by Touchland’s equityholders, which amount, to the extent not used in satisfaction of such indemnity obligations, is payable three years from the closing. Contingent upon the achievement of certain 2025 net sales thresholds, the Touchland Acquisition may require payment of additional earnout consideration up to a maximum of $180.0 in cash in the second quarter of 2026. We expect the majority of the purchase price to be allocated to the trade name.
Current report
New Credit Agreement
Current report
On July 17, 2025, the Company entered into a Credit Agreement (the “Credit Agreement”). The Credit Agreement replaced the Company’s prior $1,500.0 unsecured revolving credit facility that was entered into on June 16, 2022. The aggregate commitments of the lenders under the Credit Agreement, as of the effective date, are $2,000.0, with an option to increase such commitments to $2,750.0 pursuant to the terms therein. The revolving credit facility matures on July 17, 2030, unless extended. Terms for the Credit Agreement are substantially the same as the terms for the credit facility entered into on June 16, 2022.
Current report
For the three months ended June 30, 2025, price/mix was unfavorable in the Consumer Domestic segment, partially offset by the SPD and Consumer International segments. For the six months ended June 30, 2025, price/mix was unfavorable in the Consumer Domestic segment, partially offset by the SPD segment.
Current report
Gross profit was $1,306.6 for the six months ended June 30, 2025, a $92.5 decrease compared to the same period in 2024. Gross margin decreased 250 bps in the first six months of 2025 compared to the same period in 2024. The decline in gross margin was due primarily to costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of 100 bps and tariff refunds in the prior year of 90 bps. Excluding these items, gross margin decreased by 60 bps due to the impact of higher manufacturing costs of 180 bps (including labor, commodities and tariffs), unfavorable price/mix/volume of 20 bps, an unfavorable recall impact of 20 bps, and unfavorable foreign exchange of 10 bps, partially offset by the impact of productivity programs of 160 bps, and benefits from the Graphico Acquisition of 10 bps.
Current report
SG&A expenses were $228.2 in the second quarter of 2025, an increase of $5.4 or 2.4% as compared to the same period in 2024. SG&A as a percentage of net sales increased 40 bps to 15.1% in the second quarter of 2025 as compared to 14.7% in the same period in 2024. The increase is due to 40 bps on higher expenses, primarily due to non-cash asset impairment costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $20.6. SG&A expenses for the first six months of 2025 were $455.9, an increase of $3.1 or 0.7% as compared to the same period in 2024. SG&A as a percentage of net sales increased 30 bps to 15.3% in the first six months of 2025 compared to 15.0% in 2024. The increase is primarily due to non-cash asset impairment costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $20.6.
Current report
Interest expense for the three months ended June 30, 2025 increased $0.3 to $23.5, as compared to the same period in 2024. Interest expense for the six months ended June 30, 2025 decreased $1.4 to $46.8 as compared to the same period in 2024.
Current report
The increase in the tax rate for the six months ended June 30, 2025 is primarily from a lower tax benefit on reduced stock option exercises in 2025 compared to 2024. We are still evaluating the impact the changes to the tax provisions implemented by the OBBBA will have on our financial position, results of operations, and cash flows.
Current report
In the second quarter of 2025, we announced that we are exiting the Flawless, Spinbrush, and Waterpik showerheads businesses.
Current report
Excluding the impact of foreign exchange rates, sales growth in the second quarter ended June 30, 2025 was driven by HERO® acne treatment products in Europe, Canada and Australia, THERABREATH® mouth wash in Canada and the Global Markets Group ("GMG"), FEMFRESH and ULTRAMAX in GMG, and ARM & HAMMER® Liquid Detergent in GMG. The increase in net sales for the six-month period ending June 30, 2025, was driven HERO® acne treatment products in Canada, Europe, GMG and Australia, THERABREATH® mouth wash in GMG and Canada, FEMFRESH in GMG and ARM & HAMMER® Cat Litter in GMG.
Current report
Consumer International income from operations was $32.4 in the second quarter of 2025, a $2.5 decrease as compared to the second quarter of 2024. The decrease is due primarily to higher marketing expenses of $3.9, costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $3.8, and higher SG&A expenses of $3.1, partially offset by the impact of higher sales volumes of $4.5, favorable price/mix of $3.9, and lower manufacturing and distribution expenses of $0.2 (including tariffs). For the first six months of 2025, income from operations was $70.1, a $0.7 decrease as compared to the same period in 2024. The decrease is due primarily to unfavorable foreign exchange rates of $7.8, higher SG&A expenses of $6.4, costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $3.8, higher manufacturing and distribution expenses of $2.6 (including tariffs), and higher marketing expenses of $2.3, partially offset by the impact of higher sales volumes of $11.8 and a favorable price/mix of $10.7.
Current report
In May 2025, we entered into an accelerated share repurchase ("ASR") contract with a commercial bank to purchase Common Stock. The Company paid $300.0 to the bank, inclusive of fees, and received an initial delivery of shares equal to $270.0, or 2.8 million shares at an average price of $95.97. The 2.8 million shares were purchased under the evergreen share repurchase program. The Company used cash on hand to fund the initial purchase price. The remaining shares to be delivered by the bank will be determined by the average price per share paid by the bank during the purchase period and is expected to end in August of 2025.
Removed paragraphs (4)
Previous report
SG&A expenses were $227.7 in the first quarter of 2025, a decrease of $2.3 or 1.0% as compared to the same period in 2024. SG&A as a percentage of net sales increased 20 bps to 15.5% in the first quarter of 2025 as compared to 15.3% in the same period in 2024. The increase is due to 40 bps from lower sales partially offset by 20 bps on lower expenses. The lower expenses for the three-month period ended March 31, 2025 compared to 2024 are primarily due to lower expense on Company issued equity awards.
Previous report
Interest expense for the three months ended March 31, 2025 decreased $1.7 to $23.3, as compared to the same period in 2024, primarily due to lower average outstanding debt.
Previous report
Excluding the impact of foreign exchange rates, sales growth is driven by ARM & HAMMER® Liquid Detergent, THERABREATH® mouth wash, NAIR® depilatories, and ARM & HAMMER® dental care in Mexico, HERO® acne treatment products, WATERPIK® Flossers and THERABREATH® mouth wash in Canada, HERO® acne treatment products, BATISTE® Dry Shampoo and ANUSOL in Europe, and HERO® acne treatment products in Australia.
Previous report
Consumer International income from operations was $37.7 in the first quarter of 2025, an increase of $1.8 as compared to the first quarter of 2024. The increase is due primarily to favorable product mix of $7.5, the impact of higher sales volumes of $7.2, and lower marketing expenses of $1.7, partially offset by unfavorable foreign exchange rates of $7.8, higher manufacturing and commodity costs of $3.5, and higher SG&A expenses of $3.2.
Reworded paragraphs (32)
Previous wording
We develop, manufacture and market a broad range of consumer household and personal care products and specialty products focused on animal and food production, chemicals and cleaners. Our well-recognized brands include ARM & HAMMER® baking soda, cat litter, laundry detergent, carpet deodorizer and other baking soda-based products; OXICLEAN® stain removers, cleaning solutions, laundry detergents and bleach alternatives; VITAFUSION® and L’IL CRITTERS® gummy dietary supplements for adults and children, respectively; BATISTE® dry shampoo; WATERPIK® water flossers; THERABREATH® oral care products; HERO® acne treatment products; TROJAN condoms, lubricants and vibrators; FIRST RESPONSE home pregnancy and ovulation test kits; NAIR depilatories; ORAJEL oral analgesic; XTRA laundry detergent; and ZICAM cold shortening and relief products. Seven of those brands are designated as "power brands" because they compete in large categories, and we believe they have the potential for significant global expansion. Those seven brands are ARM & HAMMER®; OXICLEAN®; VITAFUSION® and L’IL CRITTERS®; BATISTE®; WATERPIK®; THERABREATH®; and HERO® and represent approximately 70% of our net sales and profits.
Current wording
We develop, manufacture and market a broad range of consumer household and personal care products and specialty products focused on animal nutrition, chemicals and commercial products. Our well-recognized brands include ARM & HAMMER® baking soda, cat litter, laundry detergent, carpet deodorizer and other baking soda-based products; OXICLEAN® stain removers, cleaning solutions, laundry detergents and bleach alternatives; VITAFUSION® and L’IL CRITTERS® gummy dietary supplements for adults and children, respectively; BATISTE® dry shampoo; WATERPIK® water flossers and showerheads; THERABREATH® oral care products; HERO® acne treatment products; TROJAN® condoms, lubricants and vibrators; SPINBRUSH® battery-operated toothbrushes; FIRST RESPONSE® home pregnancy and ovulation test kits; NAIR® depilatories; ORAJEL® oral analgesic; XTRA® laundry detergent; and ZICAM® cold shortening and relief products. Seven of those brands are designated as "power brands" because they compete in large categories, and we believe they have the potential for significant global expansion. Those seven brands are ARM & HAMMER®; OXICLEAN®; VITAFUSION® and L’IL CRITTERS®; BATISTE®; WATERPIK®; THERABREATH®; and HERO® and represent approximately 70% of our net sales and profits.
Previous wording
We sell our consumer products under a variety of brands through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores and websites and other e-commerce channels, all of which sell our products to consumers. We sell our specialty products to industrial customers, livestock producers and through distributors.
Current wording
We sell our consumer products through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores and websites and other e-commerce channels, all of which sell our products to consumers. We sell our specialty products to industrial customers, livestock producers and through distributors.
Previous wording
We are experiencing increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty primarily due to rapid changes in U.S. trade policies including recent sweeping tariff increases, as well as retaliatory tariffs by foreign countries. This global uncertainty has also resulted in product purchase cancellations and boycotts by customers and consumers globally. Additionally, U.S. consumers are increasingly worried about persistent inflation and looming tariffs, leading them to cut back on discretionary spending. We believe that retailers are lowering their consumer-packaged goods inventories and making targeted decisions to build inventory of certain products in advance of additional tariffs. We will continue to evaluate these evolving developments and have begun to take action to mitigate their impact on our business, including taking strategic actions for certain business lines (see Strategic Business Decisions), shifting production and relocating manufacturing operations, finding alternative sources of supply, most notably ceasing the import of Waterpik flossers from China into the U.S., potential price increases, adjusting inventories, lobbying and seeking exemptions with respect to tariffs. While the tariff situation remains fluid, we are focused on managing through these challenges. From a gross risk perspective, we are currently projecting a twelve-month run-rate gross tariff exposure of approximately $190.0. We expect that the impact of our strategic business decisions and a series of rapid supply chain actions, such as ceasing the import of Waterpik flossers from China into the U.S., will reduce our tariff exposure by approximately 80%. Over the next 12 months, we believe our remaining tariff exposure can be mitigated through additional supply chain efforts and surgical pricing.
Current wording
We continue to experience increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty primarily due to rapid changes in U.S. trade policies including recent sweeping tariff increases, as well as retaliatory tariffs by foreign countries. Additionally, U.S. consumers are increasingly worried about persistent inflation and looming tariffs, leading them to cut back on discretionary spending. We believe that retailers are lowering their consumer-packaged goods inventories and making targeted decisions to build inventory of certain products in advance of additional tariffs. We will continue to evaluate these evolving developments and have begun to take action to mitigate their impact on our business, including taking strategic actions for certain business lines (see Strategic Business Decisions), shifting production and relocating manufacturing operations, finding alternative sources of supply, most notably ceasing the import of substantially all Waterpik flossers and other products from China into the U.S., potential price increases, adjusting inventories, lobbying and seeking exemptions with respect to tariffs. While the tariff situation remains fluid, we are focused on managing through these challenges. From a gross risk perspective, we are currently projecting twelve-month run-rate gross tariff costs of approximately $60.0. Over the next 12 months, we believe our tariff cost exposure can be reduced through additional supply chain efforts and surgical pricing.
Previous wording
On May 1, 2025, we announced that we will be taking strategic actions for the Flawless, Spinbrush and Waterpik showerhead businesses, which includes shutting down or selling these businesses. These businesses generate approximately $150.0 of annual Net Sales. We expect to record a charge of $60.0 to $80.0 in the second quarter of 2025 as a direct result of these actions, primarily comprised of non-cash charges related to impairments of intangible and fixed assets, as well as inventory reserves.
Current wording
On May 1, 2025, we announced that we will be exiting the Flawless, Spinbrush and Waterpik showerhead businesses, which we intend to complete by early 2026. These businesses generated approximately $170.0 of annual Net Sales in 2024. We recorded a pre-tax charge of $51.0 in the second quarter of 2025 as a direct result of these actions, of which $30.4 was recorded in Cost of sales and $20.6 was recorded in SG&A. The charge was primarily recorded in the Consumer Domestic segment and was comprised of non-cash charges related to impairments of intangible and fixed assets, as well as inventory reserves.
Previous wording
For additional discussion, please refer to Item 1A, "Risk Factors", and Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K.
Current wording
For additional discussion, please refer to Item 1A, Risk Factors, and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K.
Previous wording
Net sales for the quarter ended March 31, 2025 were $1,467.1, a decrease of $36.2 or 2.4% as compared to the same period in 2024. The components of the net sales decrease are as follows:
Current wording
Net sales for the quarter ended June 30, 2025 were $1,506.3, a decrease of $4.9 or 0.3% as compared to the same period in 2024. Net sales for the six months ended June 30, 2025 were $2,973.4, a decrease of $41.1 or 1.4% over the comparable six month period of 2024. The components of the net sales decrease are as follows:
Previous wording
(1)The volume change reflects decreased product unit sales in the Consumer Domestic segment, partially offset by increased product unit sales in the Consumer International and SPD segments.
Current wording
For the three months ended June 30, 2025, the volume change reflects increased product unit sales in the Consumer International and Consumer Domestic segments, partially offset by decreased product unit sales in the SPD segment. For the six months ended June 30, 2025, the volume change reflects decreased product unit sales in the Consumer Domestic and SPD segments, partially offset by increased product unit sales in the Consumer International segment.
Previous wording
(3) In the first quarter of 2024, we exited the MEGALAC supplement portion of the SPD Animal Nutrition business. In the second quarter of 2024 we acquired substantially all of Graphico and sold the Passport food safety business.
Current wording
In the second quarter of 2025, we announced that we are exiting the Flawless, Spinbrush, and Waterpik showerheads businesses. In the first quarter of 2024, we exited the MEGALAC supplement portion of the SPD Animal Nutrition business. In the second quarter of 2024 we acquired substantially all of Graphico and sold the Passport food safety business.
Previous wording
Our gross profit was $659.6 for the three months ended March 31, 2025, a $27.4 decrease as compared to the same period in 2024. Gross margin decreased 70 basis points (“bps”) in the first quarter of 2025 compared to the same period in 2024, due to higher manufacturing costs including labor and commodities of 230 bps, unfavorable foreign exchange of 20 bps, partially offset by the impact of productivity programs of 160 bps, benefits from the Graphico Acquisition of 10 bps and favorable price/mix/volume of 10 bps.
Current wording
Our gross profit was $647.0 for the three months ended June 30, 2025, a $65.1 decrease as compared to the same period in 2024. Gross margin decreased 410 basis points (“bps”) in the second quarter of 2025 compared to the same period in 2024. The decline in gross margin was due primarily to costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of 200 bps and tariff refunds in the prior year of 180 bps. Excluding these items, gross margin decreased by 30 bps due to the impact of higher manufacturing costs of 130 bps (including labor, commodities and tariffs), unfavorable price/mix/volume of 40 bps, and an unfavorable recall impact of 30 bps, partially offset by the impact of productivity programs of 160 bps, and benefits from the Graphico Acquisition of 10 bps.
Previous wording
Marketing expenses for the three months ended March 31, 2025 were $136.6, a decrease of $15.4 or 10.1% as compared to the same period in 2024. Marketing expenses as a percentage of net sales in the first quarter of 2025 decreased by 80 bps to 9.3% as compared to 10.1% in the same period in 2024 due to 100 bps on lower expense primarily due to marketing program timing.
Current wording
Marketing expenses for the three months ended June 30, 2025 were $157.1, an increase of $4.7 or 3.1% as compared to the same period in 2024. Marketing expenses as a percentage of net sales in the second quarter of 2025 increased by 30 bps to 10.4% compared to 10.1% in the same period in 2024 due to 30 bps on higher expense primarily due to marketing program timing. Marketing expenses for the six months ended June 30, 2025 were $293.7, a decrease of $10.7 or 3.5% as compared to the same period in 2024. Marketing expenses as a percentage of net sales for the first six months of 2025 decreased by 20 bps to 9.9% as compared to 10.1% in the same period in 2024 due to 40 bps on lower expense, primarily due to marketing program timing.
Previous wording
Interest income for the three months ended March 31, 2025 increased $5.9 to $9.3, as compared to the same period in 2024, due to higher interest income primarily associated with higher cash balances.
Current wording
Interest income for the three and six months ended June 30, 2025 increased $5.4 and $11.3 to $9.2 and $18.5, respectively, as compared to the same period in 2024 due to higher interest income primarily associated with higher cash balances.
Previous wording
Other income (expense) was nominal for the three months ended March 31, 2025 and 2024.
Current wording
Other income (expense) was nominal for the three and six months ended June 30, 2025 and 2024.
Previous wording
The effective tax rate for the three months ended March 31, 2025 was 22.0%, compared to 19.9% in the same period in 2024. The increase in the tax rate is primarily from a lower tax benefit on reduced stock option exercises in 2025 compared to 2024.
Current wording
The effective tax rate for the three months ended June 30, 2025 was 23.8%, compared to 24.0% in the same period in 2024. The effective tax rate for the six months ended June 30, 2025 was 22.8%, compared to 22.1% in the same period in 2024.
Previous wording
We operate three reportable segments: Consumer Domestic, Consumer International and SPD. These segments are determined based on differences in the nature of products and organizational structure. We also have equity in earnings of affiliates which is not reflected in a reportable segment.
Current wording
We operate three reportable segments: Consumer Domestic, Consumer International and SPD. These segments are determined based on differences in the nature of products and organizational structure.
Previous wording
Segment net sales and income from operations for the three months ended March 31, 2025 and March 31, 2024 are as follows:
Current wording
Segment net sales and income from operations for the three and six months ended June 30, 2025 and June 30, 2024 are as follows:
Previous wording
Consumer Domestic net sales in the first quarter of 2025 were $1,129.8, a decrease of $35.4 or 3.0% as compared to the same period in 2024. The components of the net sales change are the following:
Current wording
Consumer Domestic net sales in the second quarter of 2025 were $1,154.1, a decrease of $16.5 or 1.4% as compared to the same period in 2024. Consumer Domestic net sales for the six months ended June 30, 2025 were $2,283.9, a decrease of $51.9 or 2.2% as compared to the same period in 2024. The components of the net sales change are the following:
Previous wording
The decrease in net sales for the three months ended March 31, 2025, includes declines from VITAFUSION® and L’IL CRITTERS® gummy dietary supplements, OXICLEAN® Stain Fighters and ARM & HAMMER® cat litter, partially offset by growth from THERABREATH® mouth wash and ZICAM® cold shortening and relief products.
Current wording
The decrease in net sales for the three months ended June 30, 2025, includes declines from VITAFUSION® gummy dietary supplements, and OXICLEAN® Stain Fighters, partially offset by growth from HERO® acne treatment products and ARM & HAMMER® Liquid Detergent and Cat Litter. The decrease in net sales for the six-month period ending June 30, 2025, includes declines from VITAFUSION® gummy dietary supplements, OXICLEAN® Stain Fighters and FIRST RESPONSE® home pregnancy and ovulation test kits, partially offset by growth from THERABREATH® mouth wash and HERO® acne treatment products.
Previous wording
Consumer Domestic income from operations for the first quarter of 2025 was $244.8, a decrease of $12.7 as compared to the first quarter of 2024. The decrease is due primarily to higher manufacturing and distribution expenses of $25.4, the impact of lower sales volumes of $22.2, and unfavorable price/mix of $3.4, partially offset by the benefit of productivity programs of $20.6, lower marketing expenses of $14.1, and lower SG&A expenses of $3.6.
Current wording
Consumer Domestic income from operations for the second quarter of 2025 was $217.4, a $72.3 decrease as compared to the second quarter of 2024. The decrease is primarily due to costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $47.2, higher manufacturing and distribution expenses of $46.8 (including tariffs), unfavorable price/mix of $15.4, the impact of lower sales volumes of $1.4, and higher marketing expenses of $0.3, partially offset by the benefit of productivity programs of $22.7 and lower SG&A expenses of $17.7. For the six-month period ended June 30, 2025, income from operations was $462.2, an $85.2 decrease as compared to the first six months of 2024. The decrease is primarily due to higher manufacturing and distribution expenses of $72.0 (including tariffs), costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $47.2, the impact of lower sales volumes of $23.6, and unfavorable price/mix of $18.8, partially offset by the benefit of productivity programs of $43.3, lower SG&A expenses of $21.5, and lower marketing expenses of $13.8.
Previous wording
Consumer International net sales were $261.9 in the first quarter of 2025, an increase of $6.9 or 2.7% as compared to the same period in 2024. The components of the net sales change are the following:
Current wording
Consumer International net sales were $277.6 in the second quarter of 2025, an increase of $13.9 or 5.3% as compared to the same period in 2024. Consumer International net sales in the first six months of 2025 were $539.5, an increase of $20.8 or 4.0% as compared to the same period in 2024. The components of the net sales change are the following:
Previous wording
The Graphico acquisition is included in our results since June 3, 2024, the date of acquisition.
Current wording
The Graphico acquisition is included in our results since June 1, 2024, the date of acquisition, partially offset by the impact of announcing the exit of the Flawless, Spinbrush, and Waterpik showerheads businesses.
Previous wording
SPD net sales were $75.4 in the first quarter of 2025, a decrease of $7.7 or 9.3% as compared to the same period in 2024. The components of the net sales change are the following:
Current wording
SPD net sales were $74.6 in the second quarter of 2025, a decrease of $2.3 or 3.0% as compared to the same period in 2024. SPD net sales were $150.0 for the first six months of 2025, a decrease of $10.0, or 6.3% as compared to the same period in 2024. The components of the net sales change are the following:
Previous wording
(1)We exited the MEGALAC supplement portion of the Animal Nutrition business in the first quarter of 2024 and sold the Passport food safety business in the second quarter of 2024.
Current wording
We exited the MEGALAC supplement portion of the Animal Nutrition business in the first quarter of 2024 and sold the Passport food safety business in the second quarter of 2024.
Previous wording
Net sales excluding product line divestitures increased in the first quarter of 2025 primarily due to growth in our Performance Products and Commercial & Professional businesses.
Current wording
Net sales excluding product line divestitures increased in the three and six months ended June 30, 2025 primarily due to growth in our sodium bicarbonate business.
Previous wording
SPD income from operations was $12.8 in the first quarter of 2025, an increase of $1.2 as compared to the same period in 2024, due to favorable price/product mix of $2.1 and favorable SG&A expenses of $2.1 mainly from divestitures, partially offset by the impact of lower sales volumes of $1.9 and unfavorable manufacturing costs of $1.1.
Current wording
SPD income from operations was $11.9 in the second quarter of 2025, a decrease of $0.3 as compared to the same period in 2024 due to lower volumes of $1.9, unfavorable manufacturing costs of $1.1, and higher marketing costs of $0.3, partially offset by favorable price/mix of $2.2 and lower SG&A expenses of $1.2. SPD income from operations was $24.7 in the first six months of 2025, an increase of $1.0 as compared to the same period in 2024 due primarily to favorable price/product mix of $4.3 and lower SG&A expenses of $3.5 mainly from divestitures, partially offset by the impact of lower sales volumes of $3.9, unfavorable manufacturing costs of $2.3, and higher marketing expenses of $0.6.
Previous wording
Equity in earnings of affiliates represents the results of Armand in the first three months of 2025 and 2024 and ArmaKleen in the first three months of 2024. In October 2024, the Company sold its 50% interest in ArmaKleen to our joint venture partner.
Current wording
Equity in earnings of affiliates represents the results of Armand in the three and six months of 2025 and 2024 and ArmaKleen in the first three and six months of 2024. In October 2024, the Company sold its 50% interest in ArmaKleen to our joint venture partner.
Previous wording
On June 16, 2022, we entered into a credit agreement (the “Credit Agreement”) that provides for our $1,500.0 unsecured revolving credit facility (the “Revolving Credit Facility”) that matures on June 16, 2027, unless extended. We have the ability to increase our borrowing up to an additional $750.0, subject to lender commitments and certain conditions as described in the Credit Agreement. Borrowings under the Credit Agreement are available for general corporate purposes and are used to support our $1,500.0 commercial paper program.
Current wording
On July 17, 2025, the Company entered into a Credit Agreement (the “Credit Agreement”). The Credit Agreement replaced the Company’s prior $1,500.0 unsecured revolving credit facility that was entered into on June 16, 2022. The aggregate commitments of the lenders under the Credit Agreement, as of the effective date, are $2,000.0, with an option to increase such commitments to $2,750.0 pursuant to the terms therein. The revolving credit facility matures on July 17, 2030, unless extended. Borrowings under the Credit Agreement are available for general corporate purposes and are used to support our $1,500.0 commercial paper program.
Previous wording
As of March 31, 2025, we had $1,074.5 in cash and cash equivalents, and approximately $1,494.0 available through the Revolving Credit Facility and our commercial paper program. To preserve our liquidity, we invest cash primarily in government money market funds, prime money market funds, short-term commercial paper and short-term bank deposits.
Current wording
As of June 30, 2025, we had $923.2 in cash and cash equivalents, and approximately $1,494.0 available through our previous revolving credit facility and our commercial paper program. To preserve our liquidity, we invest cash primarily in government money market funds, prime money market funds, short-term commercial paper and short-term bank deposits.
Previous wording
On October 28, 2021, the Board authorized a share repurchase program, under which we may repurchase up to $1,000.0 in shares of Common Stock (the “2021 Share Repurchase Program”). The 2021 Share Repurchase Program does not have an expiration. We continue to maintain our evergreen share repurchase program, authorized by the Board on January 29, 2014, under which we may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under its incentive plans.
Current wording
The 2021 Share Repurchase Program did not modify our evergreen share repurchase program, authorized by the Board on January 29, 2014, under which we may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under our incentive plans.
Previous wording
Net Cash Provided by Operating Activities– Our primary source of liquidity is the cash flow provided by operating activities, which is dependent on net income and changes in working capital. Our net cash provided by operating activities in the three months ended March 31, 2025 decreased by $77.3 to $185.7 as compared to $263.0 in the same period in 2024 due to an increase in working capital and a decrease in cash earnings (net income adjusted for non-cash items). The increase in working capital is primarily related to lower accounts payable and accrued expense balances because of the timing and management strategy related to marketing spend plus higher inventory partially offset by higher cash collections. The higher inventory balance is mainly due to lower sales in our consumer domestic business. We measure working capital effectiveness based on our cash conversion cycle. The following table presents our cash conversion cycle information for the quarters ended March 31, 2025 and 2024:
Current wording
Net Cash Provided by Operating Activities– Our primary source of liquidity is the cash flow provided by operating activities, which is dependent on net income and changes in working capital. Our net cash provided by operating activities in the six months ended June 30, 2025 decreased by $83.4 to $416.5 as compared to $499.9 in the same period in 2024 due to an increase in working capital and a decrease in cash earnings (net income adjusted for non-cash items). The increase in working capital is primarily related to lower accounts payable and accrued expense balances mainly due to the timing of marketing spend and inventory purchases partially offset by higher cash collections. The timing of inventory purchases as well as lower accounts receivable balances are mainly due to lower sales in our consumer domestic business. We measure working capital effectiveness based on our cash conversion cycle. The following table presents our cash conversion cycle information for the quarters ended June 30, 2025 and 2024:
Previous wording
Our cash conversion cycle (defined as the sum of DSO and DIO less DPO) which is calculated using a two-period average method, was the same as the prior year. The increase in DSO is primarily due to higher accounts receivable balances as we reduced our accounts receivable factoring program in response to higher interest rates. Higher DIO is generally the result of lower sales in the first quarter of 2025. The increase in DPO is primarily from agreeing to extended payment terms with some vendors. We continue to focus on reducing our working capital requirements.
Current wording
Our cash conversion cycle (defined as the sum of DSO and DIO less DPO) which is calculated using a quarter-to-quarter two-period average method, decreased one day from the prior year. The increase in DPO is primarily from higher average accounts payable balances from extending payment terms with some vendors. We continue to focus on reducing our working capital requirements.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities during the first three months of 2025 was $16.7, primarily reflecting $16.5 for property, plant and equipment additions. Net cash used in investing activities during the first three months of 2024 was $46.8, primarily reflecting $46.3 for property, plant and equipment additions.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities during the first six months of 2025 was $39.6, primarily reflecting $39.0 for property, plant and equipment additions. Net cash used in investing activities during the first six months of 2024 was $91.5, primarily reflecting $76.6 for property, plant and equipment additions and $19.9 for the Graphico Acquisition, partially offset by $6.6 of proceeds from the sale of assets.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities during the first three months of 2025 was $61.0 reflecting $72.4 of cash dividend payments and $5.9 related to the payment of a business acquisition liability, partially offset by $19.3 of proceeds from stock option exercises. Net cash used in financing activities during the first three months of 2024 was $209.1 reflecting $200.0 of net debt payments, $69.0 of cash dividend payments, partially offset by $59.9 of proceeds from stock option exercises.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities during the first six months of 2025 was $426.8, reflecting $300.0 of share repurchases, $145.0 of cash dividend payments and $5.9 related to the payment of a business acquisition liability, partially offset by $26.6 of proceeds from stock option exercises. Net cash used in financing activities during the first six months of 2024 was $257.4 reflecting $197.7 of net debt payments and $138.2 of cash dividend payments, partially offset by $79.5 of proceeds from stock option exercises.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On October 28, 2021, the Board authorized the Company’s share repurchase program, under which we may repurchase up to $1,000.0 in shares of Common Stock (the “2021 Share Repurchase Program”). The 2021 Share Repurchase Program does not have an expiration and replaced the 2017 Share Repurchase Program.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(2) Price/mix was favorable in the Consumer Domestic and SPD segments, partially offset by the Consumer International segment.