Church And Dwight — Income Statement, Cash Flows & Balance Sheet
Is Church & Dwight profitable?
Revenue grew modestly in 2025, but margin pressure and one-time charges are the real story.
| 2024 | 2025 | Change | |
|---|---|---|---|
| Net Sales ($M) | $6,107.1 | $6,203.2 | +1.6% |
| Gross Profit ($M) | $2,790.1 | $2,774.8 | -0.5% |
| Gross Margin | 45.7% | 44.7% | -1.0 pp |
| Income from Operations ($M) | $807.1 | $1,077.6 | +33.5% |
| Net Income ($M) | $585.3 | $736.8 | +25.9% |
| Diluted EPS | $2.37 | $3.02 | +27.4% |
Sales ticked higher, but gross margin slipped — a sign that costs (including the Touchland acquisition integration and business exits) are squeezing the spread between what Church & Dwight earns and what it spends to make its products. The swing in operating income and net income looks dramatic, but context matters: 2024 was depressed by a $357M write-down of the VMS (vitamin gummy) trade names, which does not recur in 2025.
One-time charges distort both years — strip them out and the underlying earnings picture is steadier.
| 2024 | 2025 | Change | |
|---|---|---|---|
| VMS trade name impairment ($M) | $357.1 | $0.0 | — |
| Loss on sale of vitamin business ($M) | $0.0 | $58.5 | — |
| Business exit impairments ($M) | $0.0 | $45.6 | — |
In 2024 the VMS write-down crushed reported income; in 2025 Church & Dwight booked losses from exiting the Spinbrush, Flawless, and Waterpik showerhead businesses and selling the VitaFusion/L'il Critters brands. Neither year gives a clean read on the core business without adjusting for these items.
Where does Church & Dwight's revenue come from?
Consumer Domestic is the engine, but Consumer International is growing faster.
| Segment | 2024 Net Sales ($M) | 2025 Net Sales ($M) | Change |
|---|---|---|---|
| Consumer Domestic | $4,732.3 | $4,774.8 | +0.9% |
| Consumer International | $1,071.5 | $1,129.4 | +5.4% |
| Specialty Products (SPD) | $303.3 | $299.0 | -1.4% |
Domestic is by far the largest segment and held steady, while the international business delivered the strongest growth. SPD, which sells to industrial and agricultural customers, contracted slightly.
Within Domestic, Personal Care is outpacing Household Products.
| Product Line | 2024 ($M) | 2025 ($M) | Change |
|---|---|---|---|
| Household Products | $2,584.3 | $2,556.9 | -1.1% |
| Personal Care Products | $2,148.0 | $2,217.9 | +3.3% |
Household products (laundry, cleaning, deodorizing) dipped slightly, while personal care (oral care, skin care, condoms, hair care) continued to grow — reflecting both organic momentum and the addition of Touchland hand sanitizer mid-year.
Does Church & Dwight generate cash?
Operating cash flow is strong and growing, demonstrating the durability of Church & Dwight's consumer brands.
| 2023 | 2024 | 2025 | Change (24→25) | |
|---|---|---|---|---|
| Operating Cash Flow ($M) | $1,030.6 | $1,156.2 | $1,215.4 | +5.1% |
| Capital Expenditures ($M) | ($223.5) | ($179.8) | ($122.4) | -31.9% |
| Free Cash Flow ($M) | $807.1 | $976.4 | $1,093.0 | +12.0% |
The business consistently converts earnings into cash, and free cash flow (operating cash minus capital expenditures) rose meaningfully as the company pulled back on plant investment following a period of heavy spending.
Cash was actively redeployed — but the $900M buyback program sharply reduced the cash balance.
| 2024 | 2025 | |
|---|---|---|
| Cash & Equivalents (end of year, $M) | $964.1 | $409.0 |
| Share Repurchases ($M) | $0.0 | $900.0 |
| Dividends Paid ($M) | $277.0 | $287.2 |
| Acquisition Spend ($M) | $19.9 | $656.0 |
Management deployed cash aggressively in 2025 — buying Touchland for $656M and repurchasing $900M of its own stock — leaving the cash balance roughly $555M lower than a year earlier.
How strong is Church & Dwight's balance sheet?
Long-term debt is unchanged and manageable, but a large near-term payment for Touchland is on its way.
| 2024 | 2025 | Change | |
|---|---|---|---|
| Long-Term Debt ($M) | $2,204.6 | $2,205.1 | flat |
| Business Acquisition Liabilities ($M) | $0.0 | $178.9 | new |
| Cash & Equivalents ($M) | $964.1 | $409.0 | -$555.1 |
Church & Dwight did not issue new debt in 2025, which is a positive. However, a $159M earn-out payment tied to the Touchland acquisition is due in early 2026, which is included in current liabilities. The company has a $2B revolving credit facility (essentially untouched) to cover any short-term needs.
The balance sheet is heavily weighted toward intangible assets — a feature of acquisitive consumer-goods businesses, but worth watching.
| 2024 | 2025 | Change | |
|---|---|---|---|
| Goodwill ($M) | $2,433.2 | $2,627.5 | +$194.3 |
| Trade Names & Intangibles, Net ($M) | $2,888.5 | $3,511.5 | +$623.0 |
| Total Assets ($M) | $8,883.1 | $8,912.4 | flat |
The Touchland acquisition added $730M in trade name value and $207M in goodwill, pushing intangibles to roughly 70% of total assets. The Waterpik trade name ($645M carrying value) also sits under elevated scrutiny — its cushion above impairment has narrowed and could become a charge if business conditions deteriorate further.