Financial Performance - The company expects full-year 2026 reported EPS to increase approximately 18% to 22% and adjusted EPS to grow by 5% to 8% [1] - For the first quarter, the company anticipates organic sales growth of approximately 3% and a reported sales decline of about 1% due to exited businesses in 2025 [2] - In the fourth quarter, the company's net income was $143.5 million, or $0.60 per share, compared to $189.2 million, or $0.76 per share, last year; adjusted EPS was $0.86, up 11.7% [4] Sales and Growth Initiatives - The company expects volume-driven organic sales growth of approximately 3% to 4% in 2026, with reported sales declining by approximately 1.5% to 0.5% due to exited businesses [1] - The company announced three incremental growth initiatives: expansion of the ARM & HAMMER brand, growth of the Oral care portfolio with THERABREATH, and international expansion through acquisitions [3] - Organic sales growth for the fourth quarter was 0.7%, lower than the company's outlook of approximately 1.5%, but was 1.8% when excluding the exited VMS [4] Market Reaction - In pre-market trading on NYSE, Church & Dwight shares increased by 3.6% to $95.28 [5]

Core Viewpoint - Caixabank anticipates an increase in lending income and profits for this year and the next, attributed to robust loan growth as Spain's economy outperforms the rest of the euro zone [1] Group 1 - The company expects stronger loan growth to drive its financial performance [1] - Spain's economic performance is highlighted as a key factor in Caixabank's positive outlook [1]

Financial Performance - Q4 2025 net sales increased by 3.9% to $1,644.2 million, exceeding the company's 3.5% outlook[8] - Full year 2025 net sales grew by 1.6% to $6,203.2 million, surpassing the company's 2025 outlook of 1.5% growth[2] - Organic sales for Q4 2025 were up 0.7%, with a decline in the now exited VMS business impacting growth by 130 basis points[2] - Full-year reported EPS is projected to increase by approximately 18% to 22%, with Adjusted EPS growth expected to be between 5% to 8% in 2026[34] - Net income for the twelve months ended December 31, 2025, was $736.8 million, an increase of 25.8% from $585.3 million in 2024[47] - Total net sales for the twelve months ended December 31, 2025, reached $6,203.2 million, reflecting a 1.6% increase from $6,107.1 million in 2024[49] - Net income for the three months was $143.5 million, a decrease of 45.7% year-over-year, resulting in a diluted net income per share of $0.60, down 21.1%[60] - Net income for the twelve months was $736.8 million, reflecting a 27.4% increase year-over-year, with a diluted net income per share of $3.02[61] Dividends and Shareholder Returns - The company announced a 4% increase in quarterly dividends, raising it from $0.295 to $0.3075 per share, resulting in an annual payout increase from $287 million to approximately $291 million[20] - The company paid cash dividends totaling $287.2 million in 2025, compared to $277.0 million in 2024[47] Future Outlook - In 2026, the company expects organic sales growth of 3-4% and adjusted EPS growth of 5-8%[2] - The company plans to launch new products in 2026 that are expected to drive approximately half of its organic growth[22] - For Q1, organic sales growth is expected to be approximately 3%, with a reported sales decline of about 1% due to business exits in 2025[36] - Adjusted EPS for Q1 is forecasted to be $0.92 per share, slightly ahead of last year's adjusted Q1 EPS[36] - The company forecasts organic sales growth of 3% to 4% for the year ending December 31, 2026[64] - Adjusted diluted earnings per share for the year ending December 31, 2026, is projected to be between $3.71 and $3.81[64] Operational Efficiency - Adjusted gross margin for Q4 2025 was 45.5%, a 90 basis point increase from the prior year[12] - Cash from operations for 2025 was $1.215 billion, a 5.1% increase from the prior year, driven by higher cash earnings[16] - Cash flow from operations is anticipated to be around $1.15 billion, supporting double-digit growth in recent acquisitions[35] - SG&A as a percentage of sales is expected to be higher in 2026 due to investments in new growth initiatives, ecommerce, and international division[33] - Adjusted other expense for 2026 is expected to be approximately $75.0 million, up from $62.2 million last year[33] - The adjusted tax rate for 2026 is expected to be around 21.5%, compared to 22.3% in 2025[33] Asset Management - Total assets as of December 31, 2025, are reported at $8,912.4 million, a slight increase from $8,883.1 million in 2024[46] - The company reported a net cash used in investing activities of $616.9 million for the twelve months ended December 31, 2025, compared to $183.3 million in 2024[47] - Capital expenditures for the twelve months ended December 31, 2025, were $122.4 million, a decrease from $179.8 million in 2024[47] - Capital expenditures for 2026 are expected to be approximately $130 million, about 2% of sales[35] Sales Breakdown - Consumer domestic net sales for the twelve months ended December 31, 2025, were $4,774.8 million, a slight increase of 0.9% compared to $4,732.3 million in 2024[49] - Personal care products sales increased by 3.3% to $2,217.9 million for the twelve months ended December 31, 2025, up from $2,148.0 million in 2024[49] - Organic sales growth for the twelve months ended December 31, 2025, was 0.7%, with consumer domestic growth at 0.6% and consumer international growth at 5.4%[59] - The company experienced a reported sales growth of 4.0% in total consumer net sales for the three months ended December 31, 2025, compared to the same period in 2024[49] Marketing and Expenses - Marketing expenses were $212.3 million, representing 12.9% of net sales, a slight decrease of 0.2% from the previous year[60] - SG&A expenses totaled $988.3 million, accounting for 15.9% of net sales, an increase of 0.7% from the previous year[61] - Marketing expenses for the twelve months ended December 31, 2024, were $698.1 million, accounting for 11.4% of net sales[63] Business Divestitures - The company completed the divestiture of its VMS business, which represented less than 5% of 2025 net sales, allowing for a greater focus on faster-growing product lines[19] - The company recorded a loss on the sale of its vitamin business amounting to $58.5 million in 2025[47]

Core Insights - Church & Dwight Co., Inc. reported stronger than expected sales and earnings growth for the full year 2025, with net sales increasing by 1.6% to $6,203.2 million, surpassing the company's outlook of 1.5% growth [1] - The company achieved organic sales growth of 0.7%, despite challenges from exiting the VMS business and a slowdown in category growth [1][3] - The CEO highlighted the company's balanced portfolio and focus on execution, which contributed to market share gains and strong cash flow generation [2] Financial Performance - Full-year EPS was $3.02, reflecting a 27.4% increase from 2024, while adjusted EPS rose by 2.6% to $3.53, exceeding the company's outlook [5] - Q4 net sales reached $1,644.2 million, a 3.9% increase compared to Q4 2024, surpassing the company's 3.5% outlook [6] - Reported gross margin contracted by 100 basis points, but adjusted gross margin remained steady at 45.2% due to productivity and volume offsets [4] Segment Performance - Domestic division organic sales declined by 0.5%, while international division organic sales grew by 5.5%, driven by share gains across subsidiaries [3] - Specialty Products division saw organic sales growth of 2.6% [3] - Consumer Domestic net sales increased by 3.7% to $1,271.2 million, while Consumer International net sales rose by 5.2% to $299.8 million [7][8] Strategic Actions - The company exited its VMS, FLAWLESS™, SPINBRUSH™, and WATERPIK™ businesses to focus on faster-growing product lines [3] - A one-time after-tax charge of $45.6 million was incurred in Q4 due to the VMS exit, which represented less than 5% of the company's 2025 net sales [19] - The company repurchased $900 million in shares during 2025, indicating a strong commitment to returning value to shareholders [17] Cash Flow and Capital Management - Cash from operations for 2025 was $1.2 billion, an increase of $59.2 million from the previous year, with capital expenditures of $122.4 million [15] - As of December 31, 2025, total debt was $2.2 billion, and cash on hand was $409 million, providing robust liquidity for future growth opportunities [16] Dividend and Future Outlook - The Board of Directors declared a 4.2% increase in the quarterly dividend, marking the 30th consecutive year of dividend increases [21] - For 2026, the company expects volume-driven organic sales growth of approximately 3% to 4%, with reported sales anticipated to decline due to exited businesses [31] - The company plans to focus on innovation and brand support to drive future growth, with new product launches expected to contribute significantly to organic growth [30][34]

Core Viewpoint - Church & Dwight Company, Inc. (CHD) is set to announce its fourth-quarter fiscal 2025 earnings on January 30, with investors keen to see if the company can exceed market expectations [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $1.64 billion, indicating a 3.5% growth from the previous year [2] - The consensus estimate for earnings has decreased by one cent over the past month to 84 cents per share, suggesting a 9.1% increase year-over-year [2] - CHD has a trailing four-quarter earnings surprise average of 6% [2] Key Factors Influencing Q4 Performance - CHD's fourth-quarter performance is expected to be bolstered by strong momentum in its core brands, driven by effective innovation [3] - The company's diverse portfolio of value and premium products aligns well with current consumer preferences for affordability and high-quality personal care solutions [3] - Brands like Arm & Hammer have achieved record household penetration, particularly in the laundry segment, benefiting from a shift towards value offerings [3] Innovation and Marketing Strategies - The integration of Touchland has surpassed initial expectations, becoming a significant player in the hand sanitizer market [4] - CHD is utilizing its strong innovation pipeline, with new product launches in the Therabreath and Trojan lines anticipated to drive further growth [4] - Increased marketing investments are aimed at sustaining brand consumption and reinforcing competitive positioning [5] Operational Efficiency and Challenges - Productivity initiatives and supply chain strategies have helped mitigate inflation and tariff impacts, supporting profitability while allowing for continued investment in core brands [5] - However, the company is experiencing a decline in sales due to the winding down of discontinued businesses and negative trends in the vitamin and mineral supplement (VMS) sector [6] - The overall operating environment remains challenging due to high promotional activity in certain categories and constrained household finances affecting discretionary spending [6] Earnings Prediction Insights - The current model does not predict a definitive earnings beat for CHD, with an Earnings ESP of -0.81% and a Zacks Rank of 4 (Sell) [7][8]

Fundsmith Equity Fund Overview - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Church & Dwight Co., Inc. Analysis - Church & Dwight Co., Inc. (NYSE:CHD) stock closed at $86.66 on January 12, 2026, with a one-month return of 2.50% and a 52-week loss of 17.69% [2] - The company has a market capitalization of $21.11 billion [2] - Fundsmith noted that Church & Dwight is affected by mixed consumer fortunes in the US, which is impacting demand for its discount products [3] - In Q3 2025, Church & Dwight reported a revenue increase of 5% and organic sales growth of 3.4% [3] - The stock is not among the 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding it at the end of Q3 2025, up from 39 in the previous quarter [3] - Fundsmith believes certain AI stocks present greater upside potential compared to Church & Dwight [3]

Group 1: Company Overview - Church & Dwight Co., Inc. (NYSE:CHD) is recognized as the leading US producer of sodium bicarbonate, commonly known as baking soda, and operates a diverse portfolio of personal care, household, and specialty brands [5] Group 2: Recent Developments - On January 5, Wells Fargo maintained an Overweight rating on Church & Dwight but reduced its price target from $100 to $92 as part of an update to its models across Beverage, Food, and Home and Personal Care sectors, extending these assumptions into 2026 [2] - In December, Church & Dwight completed a strategic review of its vitamins, minerals, and supplements (VMS) business, announcing a definitive agreement to sell the VitaFusion and L'il Critters brands to Piping Rock Health Products [3] - The VMS business represents less than 5% of the expected net sales for 2025, indicating that the sale will have a limited impact on the overall business [4] Group 3: Financial Implications - The company anticipates a one-time, after-tax charge of $40 million to $45 million in the fourth quarter of 2025 related to the sale, which includes net proceeds, a non-cash impairment, and costs associated with the transition and transaction [4]

Core Insights - The Fundsmith Equity Fund reported a total return of +0.8% for 2025, underperforming the MSCI World Index which rose by +12.8% [4][7]. - Since inception on November 1, 2010, the Fund has outperformed the Index by 1.7% per annum with a Sortino Ratio of 0.75, indicating less downside volatility compared to the Index [7][8]. - The Fund is ranked as the third best performer in the Investment Association Global sector of 155 funds since inception, with a return 322 percentage points above the sector average [8]. Performance Analysis - The Fund's performance in 2025 was impacted by three main issues: index concentration, the growth of assets in index funds, and dollar weakness [9][10][36]. - The top ten stocks in the S&P 500 accounted for 39% of its value and contributed 50% of its total return in USD by the end of 2025, highlighting significant market concentration [13][10]. - The rise of index funds has led to a momentum strategy that disproportionately benefits large-cap stocks, making it challenging for active funds to compete without holding these stocks [17][20]. Market Dynamics - The US dollar weakened against the pound from approximately $1.25/GBP to $1.35/GBP during 2025, affecting the GBP value of the Fund as most companies are US-listed [36][40]. - The price of gold reached a 50-year high of $4,319 per ounce, reflecting concerns about dollar strength and market conditions [39]. Portfolio Composition - The Fund's portfolio turnover was low at 12.7%, with a total cost of investment (TCI) of 1.06%, indicating a focus on minimizing trading costs [70][72]. - The weighted average free cash flow yield of the portfolio increased from 3.1% to 3.7% during 2025, suggesting improved valuation relative to the S&P 500 [68][69]. Stock Contributions - The top five detractors from the Fund's performance included Novo Nordisk, Automatic Data Processing, Church & Dwight, Coloplast, and Fortinet, with Novo Nordisk facing significant challenges in its market [45][46]. - Conversely, the top contributors were Alphabet, IDEXX, Philip Morris, Meta Platforms, and Microsoft, with Alphabet making its first appearance among the top contributors [51][52]. Investment Strategy - The Fund maintains a strategy focused on investing in high-quality companies with predictable growth and adequate returns on capital, avoiding momentum-driven investments [41][42]. - The Fund's management emphasizes the importance of understanding the underlying business performance and maintaining a long-term perspective on investments [60][79].

Core Insights - Church & Dwight Co., Inc. (CHD) is leveraging product innovation to maintain market share in a competitive consumer environment [1][8] - The company reported strong performance from new product launches in early 2025, contributing to market share expansion [2][8] - Incremental upgrades across brands are aimed at enhancing brand differentiation amid increased promotional activity and private-label competition [3] Product Performance - In Q3 2025, CHD gained market share in four of its eight power brands: ARM & HAMMER, THERABREATH, HERO, and TOUCHLAND [4][8] - THERABREATH showed significant consumption growth, while HERO and TOUCHLAND performed well due to ongoing product launches and brand engagement [4] - ARM & HAMMER benefited from sustained brand support across multiple categories [4] Strategic Focus - The company's strategy is centered on consistent product refreshes and targeted enhancements to reinforce its established portfolio [5] - CHD aims to sustain brand relevance and defend market share through disciplined execution rather than large disruptive launches [2][5] Market Performance - CHD shares have increased by 2.8% over the past month, outperforming the broader Consumer-Staples sector, which declined by 0.9% [6] - The stock has also outperformed the S&P 500 index and the industry growth rates of 1.4% and 1.6%, respectively [6] Valuation Metrics - CHD currently trades at a forward 12-month P/E ratio of 22.19, which is above the industry average of 17.67 and the sector average of 16.01 [10]

Core Viewpoint - Ahold NV (ADRNY) is currently viewed as a better value opportunity compared to Church & Dwight (CHD) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - Ahold NV has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Church & Dwight, which has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank emphasizes companies with positive estimate revision trends, which is a key factor for value investors [2]. Group 2: Valuation Metrics - Ahold NV has a forward P/E ratio of 12.92, significantly lower than Church & Dwight's forward P/E of 22.65, suggesting that ADRNY is undervalued [5]. - The PEG ratio for Ahold NV is 1.81, while Church & Dwight's PEG ratio is 3.95, indicating that ADRNY has a more favorable earnings growth outlook relative to its price [5]. - Ahold NV's P/B ratio is 2.24, compared to Church & Dwight's P/B of 4.86, further supporting the argument that ADRNY is a better value investment [6]. Group 3: Overall Value Grade - Ahold NV has earned a Value grade of A, while Church & Dwight has received a Value grade of D, highlighting the relative attractiveness of ADRNY for value investors [6]. - Stronger estimate revision activity and more attractive valuation metrics position Ahold NV as the superior option for value investors at this time [7].