(Reuters) -Kellogg Co raised its full-year sales and profit forecasts on Thursday, betting that demand for its cereals and snacks will hold strong even after multiple rounds of price increases.
Kellogg (NYSE:) joins other major food and beverage companies, including Oreo maker Mondelez International Inc (NASDAQ:), Coca-Cola (NYSE:) Co and PepsiCo (NASDAQ:) Inc, in using its brand power and distribution scale to pass on pass price increases to consumers, while seeing little pushback in demand.
The company, which is in the process of a three-way break up of its business, said overall average selling prices rose 15.7% in the third quarter, while volumes fell 2.3%.
The company said it now expects annual organic net sales to increase by over 10%, compared with its prior forecast of an increase of 7% to 8%.
Kellogg forecast adjusted full-year profit per share to rise over 3% on a currency-neutral basis, compared with a prior outlook of over 2% growth.
The company’s net sales rose 9% to $3.95 billion in the third quarter ended Oct. 1. Analysts had expected revenue of $3.78 billion, according to Refinitiv IBES data.
Story Credit: investing.com