(Reuters) – Jif peanut butter maker JM Smucker topped Wall Street estimates for third-quarter profit, as demand for its high-priced pet food and pantry staples remained amid the backdrop of rising prices in a high-inflation environment.
The company’s shares, which have fallen nearly 20% in the past year, are up more than 1%.
Demand for JM Smucker’s frozen snacks such as Uncrustables frozen sandwiches remained strong even as home cooking became more popular among consumers affected by inflation.
The Orrville, Ohio-based company posted third-quarter net sales of $2.23 billion, compared with analysts’ average estimate of $2.22 billion, according to LSEG data.
The company’s volume growth was driven by its Meow Mix cat food and boosted by the higher prices it previously implemented.
The company’s quarterly gross profit margin increased to 36.9% from 34.1% last year.
Price increases have boosted JM Smucker’s profits over the past year, and it expects its recent acquisition of Twinkies-maker Hostess Brands to further boost its margins.
JM Smucker posted quarterly earnings of $2.48 per share, compared to analysts’ average estimate of $2.27 per share, according to LSEG data.
The company, known for its distinctive glass jars, maintained its comparable sales forecast and raised the lower end of its earnings forecast as its pet food divestiture and its acquisition of Hostess Brand weigh on .
JM Smucker now expects annual profit to be in the range of $9.45 to $9.65 compared to the previous range of $9.25 to $9.65.
Earlier this month, larger peer Kraft Heinz reported a decline in sales after its volumes came under pressure due to price increases in recent quarters.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
