Church & Dwight Financial Model
Consumer Goods Company Financials Example (Free Excel Download)
Church & Dwight Co., Inc. is a leading US producer of household and personal care products, anchored by its foundational Arm & Hammer brand.
professionals from Deloitte
Used by professionals from
About this model
This model projects Church & Dwight's future cash flow generation to evaluate its capacity for continued bolt-on acquisitions and shareholder returns, ultimately supporting a discounted cash flow valuation and target price for equity research.
Church & Dwight Co., Inc. is a leading US producer of household and personal care products, anchored by its foundational Arm & Hammer brand. The company operates an asset-light business model, outsourcing a significant portion of its manufacturing while focusing internal resources on marketing, distribution, and strategic acquisitions of fast-moving consumable brands.
Business segments include:
- Consumer Domestic (approximately 75% of revenue): Household and personal care products sold in the US (e.g., Arm & Hammer, Trojan, OxiClean, Therabreath, Hero Cosmetics).
- Consumer International (approximately 18% of revenue): Personal care and household products sold in international markets, primarily Canada, Europe, and Australia.
- Specialty Products Division (SPD) (approximately 7% of revenue): Specialty chemicals and animal productivity products.
The company holds a strong competitive position, typically ranking number one or two in its specific product categories. Recent major events include a significant portfolio restructuring in 2025, where the company exited its Vitamin and Mineral Supplement (VMS) business, Flawless, Spinbrush, and Waterpik showerhead lines to focus on higher-growth premium and value products.
The downloadable Church & Dwight financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsChurch & Dwight financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $5.19B | $5.38B | $5.87B | $6.11B | $6.20B |
| Gross profit | $2.26B | $2.25B | $2.59B | $2.79B | $2.77B |
| Operating income | $1.08B | $597.8M | $1.06B | $807.1M | $1.08B |
| Net income | $827.5M | $413.9M | $755.6M | $585.3M | $736.8M |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
See 8 moreSee less
How to build a detailed financial model for Church & Dwight
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Consumer Domestic
- Segment name: Consumer Domestic
- Revenue driver formula: Base Volume x Price/Mix + Acquisition Contribution - Divested Revenue
- Historical growth rate: 2% to 4% organic growth.
- Key growth levers and headwinds: Growth is driven by market share gains in power brands (like Therabreath and Hero) and pricing actions. Headwinds include cautious US consumer spending and the loss of revenue from the 2025 exited businesses.
- Pricing dynamics: Highly competitive consumer staples pricing environment, heavily reliant on promotional strategies and retailer negotiations.
- Revenue recognition notes: Recognised at the point of shipment to retail customers, net of trade promotions and slotting fees.
- Seasonality: Relatively stable, though marketing spend is often weighted towards the first half of the year to support new product launches.
Consumer International
- Segment name: Consumer International
- Revenue driver formula: Base Volume x Price/Mix x Foreign Exchange Impact
- Historical growth rate: 5% to 9% organic growth.
- Key growth levers and headwinds: Geographic expansion of recently acquired US brands (like Hero Cosmetics) into Europe and Canada. Currency fluctuations serve as a primary headwind.
- Pricing dynamics: Subject to local market retail dynamics and currency translation.
- Revenue recognition notes: Point in time upon delivery to international distributors and retailers.
- Seasonality: Generally consistent across quarters.
Specialty Products Division (SPD)
- Segment name: Specialty Products Division
- Revenue driver formula: Chemical Volume x Spot/Contract Price + Animal Nutrition Volume x Price
- Historical growth rate: 2% to 7% organic growth.
- Key growth levers and headwinds: Driven by agricultural cycles, dairy farm profitability, and industrial demand for sodium bicarbonate.
- Pricing dynamics: More commoditised than the consumer segments, with pricing tied to raw material inputs and industrial demand.
- Revenue recognition notes: Point in time upon shipment.
- Seasonality: Minor fluctuations based on agricultural buying seasons.
Cost Structure
Variable Costs / COGS
- Line items: Raw materials (surfactants, packaging, sodium bicarbonate), third-party manufacturing costs, inbound freight, and direct labour.
- Gross margin range: 44.0% to 46.0% historically.
- Key input costs: Resin, corrugated cardboard, surfactants, and transportation fuel.
- Scaling dynamics: The company relies heavily on third-party manufacturers, creating a highly variable cost structure that protects margins during volume downturns but limits operating leverage during volume surges.
Operating Expenses
- Marketing: A critical driver for this company, consistently targeted at approximately 11% of total net sales.
- SG&A: Runs between 14.0% and 15.5% of sales. This includes corporate overhead, R&D, and international expansion investments.
- Depreciation & Amortisation: Typically 2% to 3% of sales, heavily weighted towards amortisation of acquired intangible assets.
- Restructuring / one-time charges: Frequent due to the serial acquisition strategy and recent portfolio rationalisation (e.g., the 2024 non-cash impairment charge of $357 million related to the VMS business).
Margin Profile
- Gross margin: 44.5% to 45.5% (adjusted).
- Operating margin: 19.0% to 20.5% (adjusted).
- Margin trend: Management targets consistent gross margin expansion (25 to 50 basis points annually) through productivity programmes to offset inflation and tariff costs.
Balance Sheet Structure
- Total assets: Approximately $8.5 billion to $9.0 billion.
- Key asset categories: Goodwill and intangible assets dominate the balance sheet due to the company's historical roll-up strategy.
- Goodwill & intangibles: Typically represent over 60% of total assets.
- Working capital profile:
- Days Sales Outstanding (DSO): 30 to 35 days.
- Days Inventory Outstanding (DIO): 45 to 55 days.
- Days Payable Outstanding (DPO): 60 to 70 days.
- Net working capital: The company operates with very lean, often negative, operating working capital, using supplier financing to fund operations.
- PP&E: Relatively small (asset-light model), consisting primarily of the core sodium bicarbonate manufacturing facilities and select liquid detergent plants.
- Right-of-use assets: Material but not dominant, primarily related to warehousing and corporate office leases.
Capital Expenditure & Investment
- Capex as % of revenue: Approximately 2.0% of sales (roughly $130 million annually).
- Maintenance vs. growth: The majority is maintenance and capacity expansion for core internal manufacturing, plus recent investments in ERP system upgrades.
- M&A pattern: Serial acquirer of fast-moving consumable brands. The company targets number one or number two brands with high margins and asset-light manufacturing profiles (e.g., Zicam, Therabreath, Hero).
- Typical acquisition multiple: Historically pays mid-teens EBITDA multiples for high-growth premium brands.
Debt & Capital Structure
- Total debt: Approximately $2.2 billion in long-term debt.
- Debt/EBITDA ratio: Typically managed between 1.5x and 2.5x, spiking temporarily after major acquisitions before rapid deleveraging.
- Key debt instruments: Unsecured revolving credit facility ($2 billion capacity), commercial paper programme, and senior notes.
- Interest rate profile: Predominantly fixed-rate senior notes with a weighted average cost of debt around 3.5% to 4.5%.
- Share repurchase programme: Highly active. The company repurchased $900 million in shares in 2025 under its evergreen programme.
- Dividend policy: Consistent dividend payer with a track record of annual increases. The 2026 quarterly dividend is $0.3075 per share.
Cash Flow Characteristics
- Operating cash flow conversion: Exceptionally strong. OCF routinely exceeds $1.1 billion, representing over 1.5x reported net income due to high non-cash amortisation and impairment charges.
- Free cash flow margin: 15% to 18% of revenue.
- Major non-cash items: Depreciation, amortisation of acquired intangibles, and periodic brand impairment charges.
- Working capital cash flow impact: Efficient working capital management frequently serves as a source of cash.
- Cash tax rate: Generally tracks the effective tax rate of 22% to 23%.
Sheet Structure
- Assumptions: Hardcoded inputs for macroeconomic drivers, segment growth rates, margin targets, tax rates, and capital allocation policies.
- Scenarios: Toggle for Base, Bull, and Bear cases driving the Assumptions sheet.
- Revenue Build: Detailed build for Consumer Domestic, Consumer International, and SPD. Must include a specific deduction line for the 2025 exited businesses to calculate true organic growth.
- Income Statement: Consolidated view matching the 10-K format. Revenue, COGS, Gross Profit, Marketing, SG&A, Operating Income, Interest Expense, Taxes, Net Income.
- Balance Sheet: Assets (Cash, AR, Inventory, PP&E, Goodwill, Intangibles), Liabilities (AP, Accrued Expenses, Short-term Debt, Long-term Debt), and Equity.
- Cash Flow Statement: Operating, Investing, and Financing cash flows. Must explicitly link to the working capital schedule and debt schedule.
- Working Capital Schedule: Calculation of AR, Inventory, and AP based on DSO, DIO, and DPO assumptions.
- Debt & Interest Schedule: Tranches of senior notes, commercial paper, and the revolving credit facility. Calculates interest expense and tracks debt paydown.
- Depreciation & Amortisation Schedule: Waterfall for existing PP&E and intangibles, plus capex additions.
- DCF Valuation: Unlevered free cash flow calculation, WACC build, terminal value, and implied share price.
Key Financial Relationships
- `Consumer Domestic Revenue = Prior Year Consumer Domestic Revenue * (1 + Domestic Organic Growth Rate) - Divested Brand Revenue`
- `Consumer International Revenue = Prior Year Consumer International Revenue * (1 + International Organic Growth Rate) * (1 + FX Impact)`
- `SPD Revenue = Prior Year SPD Revenue * (1 + SPD Organic Growth Rate)`
- `Total Net Sales = Consumer Domestic Revenue + Consumer International Revenue + SPD Revenue`
- `COGS = Total Net Sales * (1 - Gross Margin %)`
- `Marketing Expense = Total Net Sales * Target Marketing % (historically ~11%)`
- `SG&A Expense = Total Net Sales * SG&A % of Sales`
- `Operating Income = Total Net Sales - COGS - Marketing Expense - SG&A Expense - D&A`
- `Accounts Receivable = (Total Net Sales / 365) * DSO`
- `Accounts Payable = (COGS / 365) * DPO`
- `Free Cash Flow = Cash from Operations - Capital Expenditures`
- `Interest Expense = Average Total Debt Balance * Weighted Average Interest Rate`
Cross-Sheet Dependencies
- The Assumptions sheet feeds the Revenue Build, Income Statement, and Working Capital Schedule.
- The Revenue Build feeds the top line of the Income Statement.
- The Income Statement generates Net Income, which is the starting point for the Cash Flow Statement.
- The Working Capital Schedule calculates changes in operating assets and liabilities, feeding the Cash Flow Statement.
- The Cash Flow Statement determines the ending cash balance and any required revolver draw, feeding the Balance Sheet and Debt & Interest Schedule.
- The Debt & Interest Schedule calculates interest expense, which feeds back into the Income Statement (creating a circular reference that must be managed with a circuit breaker).
Sign Convention
- Income Statement: Revenue is positive. All expenses (COGS, Marketing, SG&A, Interest, Taxes) are negative. Net Income is the sum of these items.
- Balance Sheet: Assets are positive. Liabilities and Equity are positive. Total Assets must equal Total Liabilities plus Equity.
- Cash Flow Statement: Cash inflows are positive. Cash outflows (Capex, dividends, share repurchases, debt repayment) are negative.
- Working Capital: An increase in an asset (e.g., AR) is a negative cash flow. An increase in a liability (e.g., AP) is a positive cash flow.
Things Most Likely to Go Wrong
- Exited Businesses Distortion: The company exited VMS, Flawless, Spinbrush, and Waterpik in 2025. Historical revenue figures include these brands, meaning 2026 reported growth will look artificially negative unless the model explicitly adjusts the 2025 base.
- Marketing Spend Phasing: Church & Dwight heavily weights marketing spend to the first half of the year. Quarterly models that straight-line marketing expense will misstate Q1/Q2 margins.
- Impairment Charges: The company frequently takes large, non-cash impairment charges on acquired brands (e.g., the $357 million charge in 2024). These must be added back to calculate Adjusted EPS and Operating Cash Flow.
- Gross Margin vs. Adjusted Gross Margin: Reported gross margins are often impacted by one-time tariff refunds or restructuring costs. The model should forecast based on Adjusted Gross Margin.
- Asset-Light Misunderstanding: Analysts often overestimate capex. The company outsources heavily, so capex rarely exceeds 2% of sales.
- Acquisition Modelling: The company is a serial acquirer. A static model without a placeholder for future M&A will likely underestimate long-term debt levels and overstate cash build-up.
- Tariff Impacts: A significant portion of the company's inputs and outsourced manufacturing is subject to international tariffs. Changes in trade policy can swing gross margins by 50 to 100 basis points.
- Share Count Reduction: The company aggressively buys back stock ($900 million in 2025). Failing to model a declining share count will severely understate EPS growth.
Validation Checks
- "Gross margin should remain between 44.5% and 46.0%; flag if outside this band."
- "Marketing expense must equal approximately 11.0% of Total Net Sales."
- "Capex as a percentage of revenue should not exceed 2.5%."
- "Operating Cash Flow must be greater than 1.2x Net Income due to high D&A."
- "Total Assets must exactly equal Total Liabilities plus Shareholders' Equity in all forecast periods."
- "Debt/EBITDA should remain below 3.0x; flag if leverage exceeds this threshold."
- "Effective tax rate should be between 22.0% and 23.5%."
- "Dividend payout ratio should remain between 30% and 40% of Adjusted Net Income."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Consumer Domestic Organic Growth | 2.5 | % | Aligns with historical power brand growth and recent management guidance. |
| Consumer International Organic Growth | 5.5 | % | Reflects ongoing geographic expansion of acquired brands. |
| SPD Organic Growth | 3.0 | % | Stable growth in specialty chemicals and animal nutrition. |
| Divested Revenue Adjustment (2026) | -130 | bps | Accounts for the 2025 exit of VMS, Flawless, Spinbrush, and Waterpik. |
| Adjusted Gross Margin | 45.5 | % | Based on 2025 actuals and management's 2026 expansion targets. |
| Marketing Expense | 11.0 | % of Sales | Strict management target to support brand equity. |
| SG&A Expense | 14.8 | % of Sales | Reflects recent investments in international infrastructure and e-commerce. |
| Days Sales Outstanding (DSO) | 32 | Days | Historical average based on retail customer payment terms. |
| Days Inventory Outstanding (DIO) | 50 | Days | Historical average reflecting outsourced manufacturing supply chains. |
| Days Payable Outstanding (DPO) | 65 | Days | Historical average reflecting strong supplier negotiating power. |
| Capex | 2.0 | % of Sales | Management guidance for 2025/2026 ($130 million run-rate). |
| Effective Tax Rate | 23.0 | % | Management guidance for the consolidated business. |
| Annual Share Repurchases | 500 | $ Millions | Conservative estimate based on the evergreen repurchase programme. |
| Quarterly Dividend per Share | 0.3075 | $ | Actual declared dividend for 2026. |
| Weighted Average Interest Rate | 4.2 | % | Based on the current mix of senior notes and commercial paper. |
| WACC | 7.5 | % | Standard discount rate for a low-beta consumer staples company. |
| Terminal Growth Rate | 2.0 | % | Aligns with long-term macroeconomic inflation and population growth. |
Data Sources & Benchmarks
- SEC Filings: Church & Dwight Investor Relations page and SEC EDGAR database (10-K, 10-Q, 8-K).
- Key Peers for Benchmarking: Procter & Gamble (PG), Colgate-Palmolive (CL), Kimberly-Clark (KMB), and The Clorox Company (CLX).
- Industry Data: Nielsen or IRI scanner data for US consumer consumption trends and market share tracking.
- Consensus Estimates: FactSet or Bloomberg for forward-looking analyst estimates on organic growth and gross margin.
Sources
- Church & Dwight Co., Inc. 2025 Form 10-K and Q4 2025 Earnings Release (January 30, 2026).
- Church & Dwight Co., Inc. 2024 Form 10-K and Q4 2024 Earnings Release (January 31, 2025).
- Church & Dwight 2026 Analyst Day Presentation (January 30, 2026).
- Morningstar Financial Data and Press Release Aggregation (January 2026).
- Nasdaq Earnings Reports and Transcripts for CHD (May 2025).
Do more with the Church & Dwight model
Frequently asked
What kind of products does Church & Dwight Co., Inc. produce?+
Church & Dwight Co., Inc. is a leading US producer of household and personal care products, with its foundational Arm & Hammer brand. The company's portfolio includes brands like Trojan, OxiClean, Therabreath, and Hero Cosmetics across domestic and international consumer segments, alongside specialty chemicals.
How does Church & Dwight generate its revenue across different segments?+
Church & Dwight generates approximately 75% of its revenue from Consumer Domestic products in the US, 18% from Consumer International sales, and 7% from its Specialty Products Division. The company focuses on marketing, distribution, and strategic acquisitions of fast-moving consumable brands to drive growth.
What are the key assumptions for capital expenditure in Church & Dwight's financial model?+
The financial model for Church & Dwight assumes capital expenditure as approximately 2.0% of revenue, translating to roughly $130 million annually. This spending primarily covers maintenance, capacity expansion for core internal manufacturing, and recent investments in ERP system upgrades.
How is net working capital modeled for Church & Dwight, given its asset-light strategy?+
The financial model for Church & Dwight assumes net working capital as approximately 15.76% of revenue. While the company typically operates with lean, often negative, operating working capital by leveraging supplier financing, the model incorporates this specific percentage for its projections.
What is the primary purpose of the Church & Dwight financial model and its valuation approach?+
The financial model projects Church & Dwight's future cash flow generation to assess its capacity for continued bolt-on acquisitions and shareholder returns. This analysis ultimately supports a discounted cash flow valuation and target price for equity research.
Can I download an Excel financial model for Church & Dwight (CHD) to analyze its future performance?+
Yes, an Excel financial model for Church & Dwight (CHD) is available for download. This model forecasts the company's performance from FY2026 to FY2030 and includes key assumptions for revenue growth, margins, and capital expenditure.
Have more financial modelling questions? Contact us
Created by ex-finance professionals
Hey, I’m Alex and I created Finamodel.
Over my years in the finance industry I kept building the same models over and over again. Same structure, same assumptions, different logo. So I started building frameworks to turn them into clean, reusable templates.
Every model here is one I’d actually use for a client, and I personally vet each one before it goes up.
I’m not an expert in every industry, but I’ve built enough models to know what belongs in one. And when something is completely foreign to me, I reach out to my network for experts to work on our models with us.
Having a template library on hand cuts a first build from hours to minutes.
Need help finding your model? You’ll find me in the Finamodel app!
Other Consumer Goods Company Financial Models
Browse another company in the same sector.
Colgate-Palmolive
Colgate-Palmolive is a leading global consumer products company focused on the production, distribution, and provision of household, health care, personal care, and veterinary products.
Clorox
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products.
Deckers Brands
Deckers Brands is a global footwear, apparel, and accessories designer and distributor, best known for its powerhouse brands UGG and HOKA.
Estée Lauder Companies
The Estée Lauder Companies Inc.
Kimberly-Clark
Kimberly-Clark is a global consumer packaged goods company that manufactures and markets personal care and consumer tissue products under iconic brands such as Huggies, Kleenex, Kotex, and Scott.
Kenvue
Kenvue is the world's largest pure-play consumer health company by revenue, manufacturing and marketing a portfolio of iconic, science-backed brands including Tylenol, Neutrogena, Listerine, and Band-Aid.
Lululemon Athletica
Lululemon Athletica is a premium athletic apparel, footwear, and accessories company that designs and retails products for yoga, running, training, and other sweaty pursuits.
Altria
Altria is the leading manufacturer and seller of tobacco products in the United States, spanning smokeable products, oral tobacco products, and e-vapor products.
Explore more Consumer financial model templates.
