Despite raising its prices, Kellogg raised its forecast for full-year earnings on Thursday after topping estimates for quarterly sales.
The Battle Creek, Michigan based company shares rose 2.8% in trading before the bell.
“Our second-quarter performance again demonstrated the strength of our portfolio and the skill and grit of our employees, who managed through an unusually challenging supply and cost environment and delivered strong financial results,” said Steve Cahillane, Kellogg Company’s chairman and chief executive officer.
Affected by increasing prices in logistics, labor and ingredients Kellogg has successfully raised product prices so far without being hit by consumers. However, analysts expect the company could hit a ceiling, as inflation keeps hurting American families with no clear shows no sign of cooling.
Kellogg said average selling prices were up 13.7% in the second quarter, while sales volumes dropped only 1.5%. Net sales rose to $3.86 billion from $3.56 billion a year earlier, while analysts expected sales of near $3.64 billion, according to Refinitiv data.
Recently the company announced a breakup to create separate businesses, focused on snacks, cereals and plant-based products.