Organic Revenue Growth

FY 2024

4% "

4% "

no change

Reported Sales Growth

FY 2024

3.5% "

3.5% "

no change

Adjusted EPS Growth

FY 2024

8%-9% (low end ~8%) "

8% "

no change

Gross Margin Expansion

FY 2024

100–110 bps "

110 bps "

raised

Marketing Expense (% of Sales)

FY 2024

~11% "

above 11% "

raised

Adjusted Effective Tax Rate

FY 2024

23% "

22.5% "

lowered

Cash Flow from Operations

FY 2024

$1.08 billion "

$1.1 billion "

raised

Capital Expenditures (CapEx)

FY 2024

$180 million "

$80 million "

lowered

International Organic Growth

FY 2024

no prior guidance

8% "

no prior guidance

Specialty Products Organic Sales Growth

FY 2024

no prior guidance

5% "

no prior guidance

HERO brand growth

In Q1 and Q2, consistently positive performance: #1 in acne with a 20% share, strong distribution gains, and double-digit growth. " " " "

Remains the #1 brand in acne care with a 22% share, increasing patch share to 57%. Continues international expansion into 40 countries and maintains a bullish outlook. " " "

Consistently strong growth

Underperformance of the vitamins business

In Q1 and Q2, consumption declines of 12% and 10.9% with internal issues and slower innovation contributing to underperformance. " "

Consumption down 10%, significantly underperforming a flat gummy vitamins category. Major challenges persist despite reformulations, new packaging, and higher marketing spend. " "

Worsening sentiment, major brand challenges

Decelerating category consumption

Q1 and Q2 both noted broad-based slowdown in categories (laundry, vitamins, mouthwash), attributed to consumer price sensitivity and weaker macro environment. " " "

Growth slowed to about 2.5% in mid-Q3, then rebounded to 5% in October, though management remains cautious for Q4. " "

Consistent negative sentiment

Increasing promotional activity in litter/laundry

Q1 and Q2 highlighted rising promos tied to category slowdowns. Company kept “dry powder” ready to respond if rivals escalated promotional spend. " " "

Litter promotion rose from 15.5% in Q1 to 19.5% by Q3, adding margin pressure. Laundry promotions remained near 30%, though innovation (e.g., Hardball lightweight litter) helped mitigate share losses. " " "

Ongoing margin pressure

THERABREATH brand expansion

Introduced in Q2 as a fast-growing brand (17% total mouthwash share). Expanded product line and distribution, driving incremental category growth. " "

Continues upward trajectory in Q3: #1 alcohol-free mouthwash with a 35% share, launched Deep Clean Oral Rinse in the antiseptic segment, contributing significantly to share gains. "

Ongoing positive expansion

WATERPIK business

In Q1, created a 1% drag due to retailer inventory issues but was expected to grow for the full year. Q2 was described as “flattish” with stable consumption. " " "

Mentioned primarily for China tariff exposure; steps taken to mitigate impact. No major consumption updates in Q3. "

Stable mentions, less emphasis

Consumer trade-down to value brands

Noted in Q1 as consumers shifting to lower-priced options like ARM & HAMMER Extra laundry. No further explicit mentions in Q2. "

Not specifically referenced in Q3. Discussion focused instead on consumers buying both premium and value offerings under the ARM & HAMMER umbrella. " "

No longer discussed

Gross margin improvements

Emphasized in Q1 and Q2 (up 220–320 bps) from favorable mix, productivity, and some one-time benefits. Full-year guidance raised to 100–110 bps expansion. " "

Up 60 bps to 45% in Q3 due to volume, mix, and productivity gains, offset partially by higher manufacturing costs. " "

Continued improvement

ARM & HAMMER brand’s strong performance

Q1 and Q2 showed share gains from normalized promotions and product innovations, with ARM & HAMMER outperforming flat or declining categories. " "

Achieved all-time high shares in liquid detergent (14.7%) and unit dose (4.8%), driven by new launches like Deep Clean and Power Sheets. "

Strengthening market position

Significant vitamins impairment charge

Not mentioned in Q1 or Q2.

Recorded a $357M write-down in Q3, signaling deeper structural issues within the vitamins segment. Stabilization efforts likely to show results in 2025. " " "

New negative development