Church & Dwight raises annual forecasts on strong demand for daily essentials

Oct 31 (Reuters) - Church & Dwight CHD.N raised its annual sales and profit forecasts on Friday, after beating third-quarter estimates on strong demand for its essential items, such as laundry detergent and mouthwash, and easing tariff costs.

Shares of the New Jersey-based company rose about 7% in early-market trading following the results.

High inflation has prompted budget-conscious consumers to prioritize everyday essentials over discretionary purchases, boosting the sales of household product makers such as Church & Dwight.

The company has invested in new product launches and increased its promotions to sustain market share amid stiff competition.

Peers Kimberly-Clark KMB.N and Procter & Gamble PG.N also reported strong quarterly results recently, driven by steady demand.

Church & Dwight expects its 2025 net sales to grow about 1.5%, up from its prior view of flat to a 2% rise. It forecast annual adjusted profit of $3.49 per share, compared with its earlier projection's midpoint of $3.47.

The Oxiclean maker projected full-year tariff costs of about $25 million, compared with its previous forecast of $30 million.

The company expects its supply chain strategy and price hikes to help counter some of the tariff costs.

Its third-quarter domestic sales of consumer products rose 2.3% on an organic basis from a year ago, driven by a 3.7% growth in volumes, with demand led by Therabreath mouthwash, Hero acne products and Trojan condoms, among others.

Organic sales in its international division grew 7.7%.

Church & Dwight's net sales came in at $1.59 billion for the quarter ended September 30, surpassing analysts' average estimate of $1.54 billion, according to data compiled by LSEG.

Its quarterly adjusted profit of 81 cents per share beat expectations of 74 cents.