(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 held amid a backdrop of price rises in a high-inflation environment.
Demand for JM Smucker’s frozen snacks like Uncrustables frozen sandwiches remained resilient even as cooking at home was increasingly popular among inflation-hit consumers.
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 had implemented previously.
The company’s quarterly gross profit margin rose to 36.9% from last year’s 34.1%.
Price hikes have boosted JM Smucker’s profit over the past year, and it expected its recent acquisition of Twinkies-maker Hostess Brands would further bolster its margins.
JM Smucker posted quarterly earnings of $2.48 per share, compared with analysts’ average estimate of $2.27 per share, according to LSEG data.
The company, known for its distinctive glass jars, retained comparable sales forecast and lifted the lower end of its profit forecast as pet food divestiture and its acquisition of Hostess Brand weigh.
JM Smucker now expects annual profit to be in the range of $9.45 to $9.65 compared with the prior range of $9.25 to $9.65.
Shares of the company, which fell nearly 20% last year, were up about 2% premarket.
Earlier this month, larger peer Kraft Heinz reported a drop in sales after its volumes came under pressure due to price hikes in the previous quarters.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
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