Church & Dwight Co., Inc. (CHD): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the durable strategy of a consumer staples giant, and honestly, Church & Dwight Co., Inc.'s Business Model Canvas reveals a playbook built on core strength and smart premiumization. Their engine runs on 8 Power Brands, which account for 70-75% of sales and profits, all while projecting a rock-solid operating cash flow of $1.2 billion for 2025. Still, they are aggressively investing, spending over 11% of sales on marketing as e-commerce climbs to 23% of consumer sales by Q3 2025; you need to see how these nine building blocks-from their low-cost sodium bicarbonate advantage to strategic M&A-keep the machine running smoothly.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Key Partnerships

Major US and international mass-market retailers (e.g., Walmart, Amazon)

• Global online sales represented 22.9% of total consumer sales in Q1 2025.
• Global online sales represented 21.4% of total consumer sales in 2024.

Third-party logistics providers for global supply chain

Church & Dwight Co., Inc. is operating in 50 countries by the end of 2025. Consumer International net sales for Q3 2025 increased by 8.4% over the prior year. For Q1 2025, Consumer International net sales were $261.9 million.

Raw material suppliers, especially for sodium bicarbonate

The manufacture of Arm & Hammer Sodium Bicarbonate uses sodium carbonate, water, and carbon dioxide as raw materials. The purity level of this product often exceeds 99%. A small amount of sodium carbonate, less than 0.23%, may remain after processing. Church & Dwight Co., Inc. manufactures this at Green River, WY and Old Fort, OH. Pricing for Feed Grade Sodium Bicarbonate increased by $30 per ton effective December 1, 2025.

International distributors for expansion into 50 countries

• Church & Dwight Co., Inc. is already in 50 countries by the end of 2025.
• International Division organic sales growth was 7.7% in Q3 2025.
• International Division organic sales growth was 5.8% in Q1 2025.

Potential Joint Venture partners for the vitamin business strategic review

The strategic review of the vitamin business, which includes looking at new JV/partnership opportunities, is expected to reach a conclusion by the end of 2025. Options considered include streamlining the supply chain, new JV/partnership opportunities, and divestiture options. The company reported Q3 2025 Adjusted EPS of $0.81.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Key Activities

You're looking at the core actions Church & Dwight Co., Inc. (CHD) takes to run and grow its business as of late 2025. It's a mix of heavy investment in brands, strategic buying, and disciplined selling off of assets.

Manufacturing and supply chain optimization

The company is actively optimizing its physical operations, balancing current needs with future capacity. Full-year 2025 projected Capital Expenditures (CapEx) is set at approximately $130 million, which gets them back to historical spending levels of about 2% of sales. For the first three months of 2025, CapEx actually came in lower at $16.5 million. A major focus has been mitigating external shocks, like tariffs; supply chain actions are expected to reduce tariff exposure by approximately 80%. This included a specific action like no longer sourcing Waterpik flossers from China for the U.S. market. Productivity initiatives remain a key lever, expected to help offset persistently elevated input costs throughout 2025.

Brand innovation and new product development (e.g., ARM & HAMMER POWER SHEETS)

Innovation is clearly a major activity, with new product launches expected to fuel growth and market share momentum in 2025. Consider the ARM & HAMMER POWER SHEETS Laundry Detergent; launched online in August 2023, it became a top 2 selling brand in the Detergent Sheets Category on Amazon in 2024. This product is expanding nationally in 2025, and they are supporting this with a new launch: a dermatologist tested, FRAGRANCE-FREE variant. You see this focus on innovation across the portfolio, with brands like THERABREATH and HERO also driving category growth.

Strategic Mergers & Acquisitions (M&A), like the TOUCHLAND acquisition

Church & Dwight Co., Inc. broke an acquisition dry spell in May 2025 by signing a definitive agreement to buy the TOUCHLAND brand. This is a key activity, as the company seeks accretive acquisitions that meet strict criteria, like being asset-light and high-margin. The deal structure is significant, involving up to $880 million in total consideration ($700 million at closing plus up to $180 million contingent on 2025 net sales). The acquired business had trailing twelve months net sales of approximately $130 million through March 31, 2025, and an EBITDA of about $55 million. The expectation is that this deal will be neutral to 2025 EPS, but it is projected to be 3 percent accretive to cash earnings in 2026.

Here's a quick look at the M&A and portfolio moves:

High-impact marketing and advertising spend, exceeding 11% of sales

Supporting the brands with significant marketing investment is a non-negotiable key activity. The company has an evergreen model targeting marketing spend around 11% of net sales. For Q3 2025 specifically, they increased this investment by 50 basis points to 12.8% of net sales to drive consumption and share gains. In Q1 2025, marketing expense was $136.6 million. This high level of spend is weighted towards the first half of 2025 to support innovation launches.

Marketing Spend as a Percentage of Sales:

• Full Year 2024 Spend: 11.4%
• Q1 2025 Spend: Implied around 10.4% (based on one report)
• Full Year 2025 Target: Approximately 11%
• Q3 2025 Actual: 12.8%

Portfolio management, including exiting low-margin brands (e.g., FLAWLESS)

The company is actively managing its portfolio to shed lower-margin or non-core assets. Church & Dwight Co., Inc. is on track to exit the FLAWLESS™, SPINBRUSH™, and WATERPIK™ showerhead businesses by early 2026. This follows prior exits, as the Specialty Products Division net sales decreased by 9.3% in Q1 2025, reflecting the exit of the Megalac and the food safety business in 2024. The acquisition strategy, exemplified by TOUCHLAND, aligns with exiting these types of businesses, as the criteria for buying includes being asset-light and having growing margins. Furthermore, the company is conducting a strategic review of its vitamin business, exploring options like streamlining, joint ventures, or potential divestitures.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Key Resources

You're looking at the core assets that let Church & Dwight Co., Inc. operate and compete. These aren't just things on a balance sheet; they are the engine room of the business, especially in the consumer staples space where brand trust is everything.

Portfolio of 8 Power Brands (70-75% of sales/profits)

The company's strength is heavily concentrated in a select group of brands that drive the bulk of the financial results. As of the latest reports, these key brands account for approximately 70% of annual sales and profits. The portfolio has recently expanded to include eight core Power Brands, building on the foundation of ARM & HAMMER.

• The core Power Brands include: ARM & HAMMER, Trojan, OxiClean, First Response, Nair, Orajel, Vitafusion, and the recently added Touchland.
• The ARM & HAMMER brand alone accounts for about 40% of domestic consumer products sales.
• The company is actively managing its portfolio, having announced strategic actions for the Flawless, Spinbrush, and Waterpik showerhead businesses, which generated approximately $150 million in net sales with below-average profitability.

Core competency in low-cost sodium bicarbonate production

Church & Dwight Co., Inc. is recognized as the leading U.S. producer of sodium bicarbonate, the base for its legacy ARM & HAMMER brand. This production capability is a foundational resource, supported by dedicated, compliant manufacturing sites.

This deep expertise allows the Performance Products Group to continuously innovate new bicarbonate uses in pharmaceuticals and industrial applications.

Strong cash flow from operations, expected at $1.2 billion for 2025

The ability to generate cash internally provides significant financial flexibility for acquisitions and shareholder returns. The latest full-year guidance reflects a strong performance, particularly in the second half of the year.

• Full-year 2025 Cash from Operations outlook is approximately $1.2 billion.
• This compares to a year-to-date cash from operations of $852.0 million as of the end of Q3 2025.
• Expected 2025 Capital Expenditures are approximately $120 million.

This strong cash generation supports their strategy of pursuing accretive acquisitions, like the recent addition of Touchland.

Global manufacturing and distribution network

To support its global reach, Church & Dwight Co., Inc. manages a robust supply chain ensuring product availability across various channels in multiple continents. The company operates across Asia-Pacific, Europe, the Middle East, Africa, and the Americas.

• The network includes 12 Distribution Centers.
• Products are distributed through supermarkets, wholesale clubs, mass merchandisers, drugstores, and online channels.
• Global online sales represented 23% of total consumer sales in Q3 2025.

Intellectual property (IP) and brand equity of iconic household names

The value of the company is heavily tied to the intangible assets represented by its well-known brands, which command a premium in the market. As of mid-2025, the market was valuing the company based on this equity.

This premium valuation reflects investor confidence in the durable competitive advantage derived from its brand recognition and the consumable nature of its products.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Value Propositions

Performance and value proposition for household staples (e.g., ARM & HAMMER)

The value proposition for household staples centers on consistent performance and trust, exemplified by the ARM & HAMMER brand family. In the third quarter of 2025, ARM & HAMMER™ Cat Litter was a key driver of the Domestic Division organic growth, which was 2.3%.

For the full year 2025, Church & Dwight Co., Inc. is projecting total net sales growth of approximately 1.5%, with an expected Cash from Operations of around $1.2 billion.

The company is actively reinforcing the staple offering through innovation, such as the 2025 launch of new variants under ARM & HAMMER™ Laundry, including a dermatologist tested, FRAGRANCE-FREE variant of ARM & HAMMER POWER SHEETS™.

Premium, problem-solution products (e.g., HERO, THERABREATH)

Premium, problem-solution products are a significant growth engine. In Q3 2025, growth in the Domestic Division was led by products like THERABREATH™ mouthwash and HERO™ acne products.

The International Division's 7.7% organic growth in Q3 2025 was driven by brands including HERO and THERABREATH.

The company continues to prioritize this segment, having recently acquired TOUCHLAND, whose first quarter of ownership results exceeded initial expectations.

Convenience via diverse formats (e.g., detergent sheets) and e-commerce access

Convenience is delivered through format innovation and channel expansion. E-commerce sales represented 23% of total consumer sales in Q3 2025, an increase from 21% the prior year.

The ARM & HAMMER POWER SHEETS™ Laundry Detergent, launched online in August 2023, represents a key convenience format offering. The company is investing in this channel, with marketing investment in Q3 2025 at 12.8% of net sales.

Consistent quality and trust across a diversified portfolio

Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names, reinforcing a foundation of trust. The company is strategically streamlining its portfolio, planning to exit the FLAWLESS™, SPINBRUSH™, and WATERPIK™ showerhead businesses by early 2026, while also conducting a strategic review of its vitamin business.

The company's commitment to quality is supported by significant marketing investment, which is expected to exceed 11% of sales for the full year 2025.

Balanced offering of value and premium products to navigate economic cycles

The portfolio structure is designed to perform across economic conditions. CEO Rick Dierker highlighted the 'balanced portfolio of value and premium products' as a key positioning strength in a challenging environment.

The performance across divisions in Q3 2025 demonstrates this balance:

The full-year 2025 outlook anticipates Adjusted EPS of approximately $3.49, reflecting the navigation of economic pressures.

The company repurchased $300 million of shares in Q3 2025, bringing year-to-date repurchases to $600 million.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Customer Relationships

You're looking at how Church & Dwight Co., Inc. (CHD) interacts with the people buying their products, and honestly, for the bulk of their portfolio, it's a high-volume, low-interaction setup. The relationship is primarily automated and transactional, flowing through established retail and e-commerce pipelines.

The sheer scale of their operation means most sales happen at the shelf or via a click, not through a direct conversation with a company representative. For instance, looking at the third quarter of 2025, the Domestic Division accounted for the largest portion of sales, hitting $1.2 billion in net sales. Global online sales, which represent this automated e-commerce channel, continued to gain ground, making up 23% of total consumer sales in Q3 2025, up from 21% the prior year. This shows a clear, measurable shift in the transactional relationship toward digital self-service.

Brand building is where Church & Dwight Co., Inc. (CHD) puts significant financial muscle to drive awareness and preference, which is critical for a low-touch model. They expect their full year 2025 marketing investment to exceed 11% of net sales, keeping with their stated Evergreen Model target. To give you a concrete example of this investment in the third quarter of 2025, marketing expense was $202.9 million, representing a $17.1 million increase year-over-year. This spend fuels mass-market advertising and digital marketing efforts designed to create pull-through demand at the point of transaction. For comparison, in the second quarter of 2025, marketing expense as a percentage of net sales was 10.4%.

For the vast majority of their established products, the relationship is decidedly low-touch and self-service. You pick up the Arm & Hammer baking soda or OxiClean, you buy it, and that's the extent of the direct interaction. This model relies heavily on shelf presence and brand equity built through the mass marketing mentioned above. The fact that the Domestic Division organic sales growth was only 2.3% in Q3 2025 suggests that while the base business is steady, the growth engine is not reliant on high-touch customer acquisition.

However, for newer or niche brands, the relationship shifts to more direct digital engagement. This is where you see targeted efforts to build a community and gather direct feedback. Take the recent acquisition, Touchland; management noted its first quarter of ownership in Q3 2025 exceeded initial expectations, suggesting strong early digital traction. Furthermore, specific brand performance metrics from Q2 2025 show where focused digital/innovation efforts are paying off:

• THERABREATH consumption grew 22.5% and maintained a 21% share.
• HERO acne products saw 11.4% growth, holding the #1 acne care brand position with a 22% share.
• ARM & HAMMER liquid laundry detergent consumption grew 3.2%, achieving a 15% share.

These figures demonstrate that while the core relationship is transactional, Church & Dwight Co., Inc. (CHD) actively uses targeted investment to foster deeper, more direct relationships with consumers for their growth-focused brands.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Channels

You're looking at how Church & Dwight Co., Inc. (CHD) gets its products into customers' hands as of late 2025. The channel strategy is clearly multi-pronged, balancing traditional retail muscle with significant digital expansion, plus a dedicated business-to-business arm.

The core of the consumer business still flows through established brick-and-mortar locations, but the digital shift is material. Global online sales are now a significant portion of the total consumer revenue base.

Here's a look at the sales breakdown across the major segments based on the third quarter of 2025 performance:

The physical retail footprint, represented by the Consumer Domestic Division, brought in $1,219.7 million in net sales during the third quarter of 2025, growing organically by 2.3%. This channel is where the bulk of the ARM & HAMMER™ and other household/personal care brands move through US retailers.

The international reach is showing stronger organic momentum. The International Division, which includes the international subsidiaries and the Global Markets Group, posted net sales of $290.1 million in Q3 2025, with organic sales growth at 7.7%.

The digital channel is growing fast enough to be a key focus area. You should note this trend:

• E-commerce platforms represented 23% of total consumer sales in Q3 2025.
• This is an increase from 21% in the prior year.

For the Specialty Products Division (SPD), which serves industrial customers directly, the channel is distinct from the consumer side. SPD net sales for the third quarter of 2025 were $75.8 million, with organic sales growth coming in at 4.2%. This division's performance is often tied to industrial demand cycles, not just consumer purchasing habits.

The company is actively managing its channel portfolio by exiting certain businesses, like the FLAWLESS™, SPINBRUSH™, and WATERPIK™ showerhead lines, which are expected to be fully exited by early 2026. This pruning is designed to sharpen focus on brands that can win in these existing channels, especially online.

Finance: review the Q4 2025 channel performance against the Q3 2025 run-rate by next Tuesday.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Customer Segments

You're looking at how Church & Dwight Co., Inc. (CHD) slices up its market to sell everything from baking soda to premium oral care. The customer base is broad, but they segment it carefully to match their value propositions, which is smart given their portfolio mix.

The core of the business still targets the everyday shopper, but the growth engine is increasingly international and digitally engaged. Here's a quick look at the revenue distribution based on the latest figures we have for the third quarter of 2025, which gives us a solid view of where the money is coming from right now.

The company expects full year 2025 reported sales growth to land around 1.5%, which shows they are managing the impact of exiting lower-performing businesses while still pushing for overall growth.

Mass-market consumers seeking value in household and personal care

This group forms the bedrock of Church & Dwight Co., Inc.'s revenue, primarily served through the Consumer Domestic Division. These are the shoppers looking for reliable performance in staples like laundry detergent and cat litter, often prioritizing value. In the third quarter of 2025, this segment generated approximately $1,219.7 million in net sales.

Even with slowing category consumption in the US market, this segment is showing resilience, delivering organic sales growth of 2.3% in Q3 2025. This suggests that even value-focused consumers are trading up within the company's brands or that volume growth is holding steady.

• Brands like ARM & HAMMER™ Liquid Detergent and Cat Litter anchor this segment.
• The company is defintely focused on driving share gains here.
• This segment is also heavily engaged online, with global online sales hitting 23% of total consumer sales in Q3 2025.

International consumers in developed and emerging markets

The international customer base is a significant growth driver, showing stronger organic growth than the domestic market in Q3 2025 at 7.7%. Net sales for the Consumer International segment in Q3 2025 reached $290.1 million.

Growth here is described as broad-based across subsidiaries and the Global Markets Group, indicating successful penetration in diverse geographies. Brands like HERO, THERABREATH, and BATISTE™ are leading this international charge.

Niche consumers for premium, problem-solution products (e.g., acne, oral care)

Church & Dwight Co., Inc. successfully targets consumers willing to pay a premium for specific solutions, often through its Power Brands. These customers are less price-sensitive when a product solves a distinct problem. The acquisition of TOUCHLAND™ in July 2025, a fast-growing hand sanitizer brand, directly addresses this segment.

Premium oral care, like THERABREATH™ mouthwash, and specialized skincare, like HERO™ acne products, cater to this group. While specific revenue for just the niche/premium lines isn't broken out separately from the Domestic Division, the overall focus on innovation and marketing investment exceeding 11% of sales for 2025 signals a commitment to these higher-margin areas.

Business-to-Business (B2B) customers for Specialty Products Division (SPD)

The Specialty Products Division serves industrial and commercial customers, primarily through its sodium bicarbonate business. This segment is smaller but contributes steady, high-margin revenue. In Q3 2025, SPD net sales were $75.8 million, with organic sales growing by 4.2%.

This division's customer base includes industries relying on high-purity sodium bicarbonate for applications ranging from food processing to animal nutrition. The company is streamlining its vitamin business, which falls under this umbrella, by exploring JVs or divestiture options by the end of 2025, suggesting a focus on optimizing the core B2B offerings.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Cost Structure

You're looking at the major outflows that fund Church & Dwight Co., Inc.'s operations as of late 2025. Honestly, for a consumer staples company like Church & Dwight Co., Inc., the cost structure is dominated by getting product made and getting it in front of the customer.

The cost of goods sold (COGS) is a massive component, which we see reflected in the gross margin performance. For instance, the third quarter of 2025 saw the Adjusted Gross Margin come in at 45.1%. This means that roughly 54.9% of net sales went toward the direct costs of producing the goods, covering raw materials, manufacturing overhead, and direct labor.

Church & Dwight Co., Inc. is definitely spending heavily on getting the word out. The company is actively investing in its power brands to build momentum into 2026. For the full year 2025, marketing as a percentage of sales is expected to exceed 11% of net sales. To give you a concrete example from the most recent reported quarter, third quarter 2025 marketing expenses as a percentage of sales actually hit 12.8%.

Here's a quick look at the major operating expense percentages we have for 2025:

On the SG&A (Selling, General, and Administrative) front, the expectation is that this cost, as a percentage of sales, will be lower versus 2024 for the full year 2025. This suggests efficiency gains or controlled overhead spending relative to revenue growth, even as they invest in areas like e-commerce and international operations. Still, Q3 2025 saw adjusted SG&A increase by 20 basis points year-over-year.

Capital expenditures (CapEx) are being managed for growth projects. For the full year 2025, Church & Dwight Co., Inc. expects capital expenditures to be approximately $120 million. This is a key number for understanding investment in property, plant, and equipment.

Financing costs are tied to the balance sheet structure. As of September 30, 2025, total debt for Church & Dwight Co., Inc. stood at $2.2 billion. The interest expense associated with this debt load has shown some favorable movement; for example, Q3 2025 saw adjusted other expense increase by $3.9 million due to lower interest income, but Q3 2024's adjusted other expense had decreased due to lower interest expense.

You should track these key cost drivers:

• Raw Material & Production Costs: Watch the Adjusted Gross Margin trend against input cost inflation.
• Brand Investment: Marketing spend is clearly prioritized to be above 11% for the year.
• Overhead Control: Monitor the SG&A percentage against the stated goal of being lower than 2024.
• Fixed Investment: The $120 million CapEx target sets the floor for fixed asset investment this year.

Finance: draft 13-week cash view by Friday.

Church & Dwight Co., Inc. (CHD) - Canvas Business Model: Revenue Streams

You're looking at how Church & Dwight Co., Inc. brings in the money based on their late 2025 figures. It's a mix of strong domestic brands, growing international presence, and specialized business units.

The third quarter of 2025 showed solid top-line momentum, with reported net sales increasing 5.0% to $1,585.6 million. Overall organic sales grew 3.4% for the quarter.

Here's a breakdown of the segment performance for the third quarter of 2025:

Consumer Domestic product sales, which include major brands like ARM & HAMMER and TROJAN, saw reported net sales rise 4.2%. The organic growth for this segment was 2.3%.

Consumer International product sales were a standout performer, with reported net sales growing 8.4% in Q3 2025, amounting to $290.1 million. The underlying organic growth for this division was 7.7%.

Specialty Products Division (SPD) sales, serving industrial and animal nutrition markets, contributed $75.8 million in net sales, a 5.1% increase. The organic sales growth for SPD was 4.2%.

Key drivers for the Q3 performance included:

• Domestic Division organic growth of 2.3%.
• International Division organic growth of 7.7%.
• SPD organic sales growth of 4.2%.
• E-commerce sales representing 23% of total consumer sales in Q3.

Looking at the full-year expectations for fiscal 2025, Church & Dwight Co., Inc. is projecting that Full-year 2025 Reported Sales Growth will be approximately 1.5%. Also, the company's guidance for Adjusted EPS for 2025 is set at approximately $3.49.

The company also raised its full-year Cash from Operations projection to approximately $1.2 billion.