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Church & Dwight Q1 Earnings Beat Sales Forecast Despite Profit Decline

Wall Street Journal US Business •
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Church & Dwight delivered better-than-expected sales growth in the first quarter, with organic sales rising 5% and surpassing the company's 3% forecast. The consumer goods maker, known for brands like Arm & Hammer, showed strength across its core segments, lifting revenue above guidance levels.

However, net income slipped slightly to $216.3 million, or 91 cents per share, down from $220.1 million in the prior-year period. The decline stemmed primarily from higher marketing expenses and integration costs related to the $880 million Touchland acquisition completed last year, which added amortization expenses to the balance sheet.

Adjusted earnings of 95 cents per share matched Wall Street expectations, showing the underlying business remains solid despite near-term headwinds. The company's ability to exceed sales forecasts while absorbing acquisition costs suggests operational momentum, though investors will watch how quickly Touchland's hand sanitizer products contribute to profitability.

The results illustrate the ongoing challenge consumer staples companies face balancing growth investments with margin pressure, particularly when integrating premium acquisitions during uncertain demand environments.