(Reuters) - Church & Dwight (NYSE:CHD) lifted its annual net sales forecast for a third time this year on Friday, boosted by high prices as well as strong demand for its household and personal care products.
Consumer goods companies have been bumping up product prices to offset spiraling raw material and labor costs as well as the impact of a stronger dollar, although investors have raised concerns that higher prices might dent demand.
However, the company's price increases have not seen much of a push back from budget-conscious customers, who have otherwise reduced discretionary spending and curbed some grocery purchases as well.
The Trojan condom maker's overall average selling prices increased 2.1%, while its volumes increased 2.7% during the quarter.
Last week, toothpaste maker Colgate-Palmolive (NYSE:CL) raised its annual sales and profit forecasts again, while Kleenex tissue maker Kimberly-Clark (NYSE:KMB) has also hiked its full-year profit expectations for a third time.
Church & Dwight said it expects full-year net sales to grow by 9% compared with its previous forecast of an 8% increase, but stuck to its forecast of a 6% growth in full-year adjusted profit.
"We are maintaining our full-year EPS outlook, with higher revenue and gross profits being offset by higher marketing and selling, general, and administrative (SG&A) dollars," CEO Matthew Farrell said in a statement.
For the reported quarter, Church & Dwight's marketing expenses rose by 19%, with the company projecting a "significant increase" in marketing spending in the current-quarter amid strong momentum. Its SG&A expenses jumped over 43%.
Its third-quarter revenue rose 10.5% to $1.46 billion, compared with the average analyst estimate of $1.43 billion, according to LSEG data.
The company's adjusted profit came in at 74 cents per share, beating the estimate of 69 cents.