(Reuters) – Kellogg Co raised its full-year sales and profit forecast on Thursday, betting on higher prices and continued demand for its breakfast cereals and snacks.
Kellogg, like other food companies, has steadily raised prices for its products over the past year to offset rising costs for transportation, labor and ingredients such as wheat, corn and edible oils.
Although demand, particularly for Kellogg’s most expensive cereals, has held up well so far, analysts have warned it could slow, with consumers looking to save amid runaway inflation that is not showing no signs of slowing down.
Even so, Kellogg expects annual revenue to rise 7-8%, compared to previously forecasting growth of around 4%, and annual operating profit up 4-5%. % against 1 to 2% previously.
(Mehr Bedi report in Bangalore; French version Alizée Degorce, edited by Jean-Stéphane Brosse)
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