Conagra Brands lifts annual profit forecast on consistent price hikes

(Reuters) – Conagra Brands Inc raised its full-year profit forecast on Wednesday, as the Slim Jim beef jerky maker bets on price increases and resilient demand for its frozen foods, snacks and other packaged meals.

Shares of the company rose about 3% before the bell, after it also edged past analysts estimates for third-quarter sales.

Packaged food companies have been consistently raising their product prices to limit margin pressures from elevated supply chain expenses as well as higher costs of everything from packaging and transportation to labor.

These price increases have boosted profits at Conagra, which is now also benefiting from a moderation in prices of commodities including meat and proteins.

The company expects full-year adjusted profit between $2.70 and $2.75 per share, compared with its earlier forecast of $2.60 to $2.70 per share.

The Act II microwave popcorn owner however trimmed the top end of its annual organic net sales forecast to 7% to 7.5% rise, compared with its prior forecast of between 7% and 8% growth.

(Reporting by Anne Florentyna Gnanaraja Sekar and Deborah Sophia in Bengaluru; Editing by Rashmi Aich)