Kellanova beat Wall Street estimates on Thursday as first quarter sales and profit were boosted by higher prices and firm demand for its products.
The cereal and snack maker’s shares were up nearly 2% in premarket trading.
Kellanova, which rebranded itself last year, is known for its diverse portfolio of brands such as Rice Krispies, Nutri-Grain breakfast bars and Special K.
The company, much like other major brands, has raised prices in an effort to increase profit margins as the price of transport and raw materials increased.
Brands such as Nestlé and Coca-Cola have made similar moves, relying on the popularity of their products, particularly in North America.
Despite price hikes and sticky inflation, consumers have remained loyal to Kellanova snack brands.
The company said its prices rose by 8.5% in the quarter, while organic sales volumes fell 3.1%.
Kellanova’s snacking business – formerly known as Kellogg – reported net sales of $3.20 billion in the three months ending 30 March.
This was above analysts’ expectations of $3.16 billion, according to data from the London Stock Exchange Group.
Higher prices also helped drive its adjusted gross margin 35.7% from 31.0% a year earlier.
The company, which spun-off its North American cereal business last year into WK Kellogg, posted an adjusted profit of $1.01 per share for the quarter.
This surpassed expectations of 85 cents per share.
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