Kraft Heinz beat Wall Street estimates for third-quarter profit and raised its annual forecast as the Jell-O maker's margins benefited from higher prices of its packaged meals and condiments.
Its shares edged up 1% to $31.7 in premarket trading.
Packaged food makers from Kellogg and Coca-Cola Co to General Mills have hiked product prices steadily as consumers continue to spend on their quick-fix meals and condiments.
Adjusted Gross Margin
Kraft's adjusted gross margin for the quarter expanded 396 basis points to 34%.
It logged adjusted earnings of 72 cents per share for the quarter, above analysts' estimates of 63 cents.
The Philadelphia Cream Cheese maker forecast full-year adjusted profit to be in the range of $2.91 to $2.99 per share, compared with its previous range of $2.83 to $2.91.
Volumes Decline
However, its overall volumes declined 5.4%, signaling that price hikes over the last several quarters were taking a toll as customers struggle with high interest rates.
The company's net sales rose to $6.57 billion for the quarter ended Sept. 30 from $6.51 billion a year earlier. Analysts on average had expected $6.72 billion, according to LSEG data.
Read More: Kraft Heinz Misses Quarterly Sales Estimates As Higher Prices Dent Volumes
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