The maker of Jif Peanut Butter JM Smucker topped Wall Street estimates for its fourth-quarter profit on Thursday, sending its shares up 2%.
It was helped by higher prices of condiments and frozen food as well as lower input costs.
Benefits from price hikes helped the company shield its margins from the rising cost of coffee.
It further benefitted from manufacturing and commodities prices coming down from their peak.
The maker of Dunkin’ pre-made coffee saw gross margins rise 41.4% in the quarter.
On an adjusted basis, the company posted a quarterly profit of $2.66 per share, above market estimates of $2.33, according to data from the London Stock Exchange Group.
While the company increased prices to counter soaring raw material costs, it struggled with weaker demand as consumers faced high living costs and traded down to cheaper alternatives.
JM Smucker’s quarterly sales dropped 1% to $2.21 billion, slightly below analysts’ estimates of $2.24 billion.
Net sales for the company’s domestic retail pet food business declined 42% in the quarter ending 30 April.
This decline came after rising 9% last year owing to higher prices.
Last month, larger peers Kraft Heinz and Hormel Foods also reported quarterly sales below estimates due to sluggish demand.
Chief executive of the company Mark Smucker said, “In response to recent higher green coffee costs that we will begin to incur during the first quarter, we are taking a list price increase across parts of our portfolio in early June.”
The company forecast annual sales of 9.5% to 10.5%, slightly above estimates of 9.85%.
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