Church & Dwight Co., Inc. stock research
FY2025 Q1
Church & Dwight (CHD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue in the current quarter was lower than the prior quarter but stable compared to the same quarter last year. Gross margin improved sequentially but weakened year-over-year, reflecting the interplay of revenue and cost of revenue changes.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue in the current quarter was lower than the prior quarter but stable compared to the same quarter last year. Gross margin improved sequentially but weakened year-over-year, reflecting the interplay of revenue and cost of revenue changes.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue decreased at a faster rate than revenue, leading to margin improvement; year-over-year, cost of revenue declined but gross profit fell, resulting in a lower margin.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher as cost of revenue decreased more than revenue. Compared to the same quarter last year, revenue was similar, cost of revenue was slightly lower, yet gross profit and margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.0%
Gross profit
$659.6M
Revenue
$1.5B
Cost of revenue
$807.5M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.5B | $712.1M | $799.1M | 47.1% |
| Sep 30, 2024 | $1.5B | $683.1M | $827.5M | 45.2% |
| Dec 31, 2024 | $1.6B | $707.9M | $874.1M | 44.7% |
| Mar 31, 2025 | $1.5B | $659.6M | $807.5M | 45.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.2 pts
Year-over-year change
Mar 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue decreased at a faster rate than revenue, leading to margin improvement; year-over-year, cost of revenue declined but gross profit fell, resulting in a lower margin.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher as cost of revenue decreased more than revenue. Compared to the same quarter last year, revenue was similar, cost of revenue was slightly lower, yet gross profit and margin were lower.
Monitor the trajectory of cost of revenue relative to revenue, as it has been the primary factor influencing gross margin changes.