CHD Stock Forecast & Price Target

Church & Dwight Co. is poised for continued growth, with its international business expected to expand 7-8% this year, and a projected organic sales growth of 3-4% for 2025, primarily fueled by increased volume. The company's recent performance highlights a 2.7% organic growth in Consumer Domestic, supported by personal care sales, while Consumer International saw a notable increase of 9.6%, bolstered by both volume and price/mix improvements. Additionally, management anticipates a gross margin expansion of approximately 25 basis points, driven by favorable product mix, volume growth, and enhanced productivity, positioning the company for improved profitability despite rising input costs.

Church & Dwight Co. experiences substantial challenges within its Vitamin, Mineral, and Supplement (VMS) segment, as evidenced by a significant 16% sales decline for its Vitafusion brand compared to just 2.3% growth in the overall gummy vitamin category. Financial estimates for FY25 have been revised downward, with projected organic sales growth of only 3.3%, reflecting a decrease in marketing expenses and general selling and administrative costs. The company’s guidance for Q1 2025 indicates a subdued organic sales growth expectation of 2.0%, which falls short of projections and highlights concerns regarding the adverse economic conditions likely impacting consumer demand.