Church & Dwight Company, Inc.

Okay, so next up this afternoon, we're pleased to welcome Church and Dwight here today in his first presentation at our conference as CEO. Not his first presentation, but his first presentation as CEO of the company as Rick Durker. And we're also pleased to have CFO Lee McChasney, who's joined us, joined Church and Dwight in March, and also Chuck Raup, who runs the consumer domestic business. So the team's going to give a presentation. If there's some time for Q&A, we will do that. But generally speaking, the floor is yours.

All right, thanks, Lauren. It's always good to be back in Boston. So here's our safe harbor statement. Please, if you have any questions, read that on our website. So the message today is we remain really confident in our future. We're living, and everyone is, in a volatile environment. We have a balanced portfolio. We're driving share gains on many of our brands. Our latest acquisition brings additional opportunities for growth. Online channels experiencing steady growth. A long track record of success there. Innovation remains a key growth driver, and we're seeing strong international performance, so we're confident about the strength of our Evergreen model as we look forward. For those of you who may not follow Church and Dwight every day, we're about a $6.1 billion company, 77% of our sales are in the US, 18% are national, and the rest is our SPD division. We have eight power brands. Those eight power brands represent 75% of our sales and profits. And we have a balanced portfolio. About half of our business is household. About half of it is personal care. And about 36% is value. And about 64% is premium. So really resilient in most any economic condition. But it all started back in 1846 with Arm & Hammer. And this was Dr. Church and Mr. John Dwight. And they started Church & Dwight. And it all started with the yellow box. And if you fast forward time, Arm & Hammer is such a unique brand. It plays across so many different categories. It's premium in some categories. It's value in other categories. It's known for cleaning, personal care, laundry, deodorizing, cooking. And this is where the brand is today. It's a $2 billion brand globally out of our $6 billion. So long track record of success. If you rewind the clock and look back in 2020, we only had one power brand. It was Sorry, in 2000, we only had one power brand. It was Arm & Hammer. And since then, we've acquired many different brands and businesses, but one constant remains. It's the growth and the strength of Arm & Hammer over a long period of time. Let me talk for a few minutes about categories. So we're driving share gains across most of our categories. Here is a look at just the categories. We are eight power brands in nine categories. And more often than not, if you look back at the track record for categories, they've grown around 3% a year. And here's a little bit more detail. So in 2024, category growth, this isn't our growth, this is category, this is the macro. First half of 2024, categories were growing 4.5%. Back half, they were growing 2.5%. The world seemed to be in a lot of turmoil early in 2025, and categories were only growing 1.5%. Q2 they grew closer to two and a half percent and I would say kind of year to date quarter to date they're growing around two two and a half percent as well so they're better than they were when we when we spoke in April and they're still not back to historical averages now that's just one piece of the story our category growth is important but how we gain share determines how fast our brands are growing And in general, we're very successful. Six of our eight power brands are gaining share on a year-to-date basis. And now let me turn it over to Chuck, who leads our U.S. business. He's going to talk about each of the categories and give you some confidence in those businesses.

Thanks, Rick. We'll kick things off by taking a look at our fabric care business. As we take a look at the liquid laundry category, we see that in Q1, things were about flat, and then Q2, we rebounded a bit. and got to about a 1.4% growth rate, which is about what we expected. Now, Arm & Hammer was able to outpace the category and grow at a solid rate and consequently grow share. And the share gain is really part of a longer track record that Arm & Hammer has. And we have this history of bringing consumers into our portfolio and also retaining those consumers in our portfolio. So if you look at where we were in 2006, we were at a five share. And we've nearly tripled that by 2025. Now, why are we able to do this? Well, we believe it's because we deliver a superior value to our consumers, and we're always delivering meaningful innovation. And a great example of this approach is our good, better, best strategy. So if we look at our slide, the good is the yellow and white bottles. And then we add value as we move up the tiers. And so we add things like OxiClean in our better tier, and then our newest innovation, DeepClean, in our best tier adds greater stain-fighting efficacy. And what we've seen from DeepClean is that it really is able to attract new users into our business. Moving on to cat litter. Cat litter, the performance of the category has been strong throughout the year. It started off at about 2% and then accelerated to 4%. And we were right there with the category, just a little bit under through the front half, and we're down just a shade in share. But the good news is, in Q3, things have picked up, and we're back to year-to-date share growth. Now, cat litter is also a great share story. And so if we look over the last five years, we have increased our share about 150 basis points. And why is that? Well, the reasoning is similar to what we talked about in liquid laundry detergent. We deliver a great value to consumers, and we deliver meaningful innovation. And so, for example, this year, key drivers of our growth are performance in our black box, which is in our medium tier or our better tier. And we've also had solid performance in our hardball innovation, which is our entry into the light litter segment, which is a $400 million segment. And we've grown our share from about 4% to 8%. Now, as Rick discussed, Arm & Hammer is this tremendous mega brand that spans many categories. And it offers us the ability to connect with consumers across many occasions throughout their day. And so what I'm going to share is an update to our advertising, which really shows the empowerment that Arm & Hammer brings to consumers, enables them to get the job done during their day and realize a great value.