(Reuters) – Kraft Heinz raised its full-year profit forecast on Wednesday, as price hikes and resilient demand help the Jell-O maker cushion the blow from higher commodity costs.
Shares of the Philadelphia Cream Cheese maker were up 1.4% in premarket.
The packaged food maker, like other U.S. peers such as Kellogg, Coca-Cola Co and General Mills, has been increasing product prices steadily to protect profits from rising costs amid an inflation-induced slowdown in consumer spending.
But even as inflation squeezes household budgets, consumers have refrained from trading down to cheaper alternatives and are still willing to pay more for their favorite snack brands despite multiple rounds of price hikes, boosting business at Kraft Heinz.
The company said it expected adjusted earnings between $2.83 to $2.91 per share for 2023, compared with the prior forecast of $2.67 to $2.75 per share.
The Lunchables maker reiterates its target for 2023 organic net sales growth of 4% to 6%, compared to 2022.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Milla Nissi)
