Conagra Brands Inc (NYSE:CAG) stock rose 1.33% (As on January 6, 11:12:39 AM UTC-4, Source: Google Finance) after the company raised its full-year forecasts, after beating quarterly results, helped mainly by higher prices for its snacks and ready-to-eat meals. The 8.6% increase in organic net sales was driven by a 17.0% improvement in price/mix, which was partially offset by an 8.4% decrease in volume. Price/mix was driven by the company’s inflation-driven pricing actions that were reflected in the marketplace throughout the quarter. The volume decrease was primarily a result of the elasticity impact from inflation-driven pricing actions; however, the elasticity impact was favorable to expectations. Adjusted net income attributable to Conagra Brands increased 27.9% to $392 million, or $0.81 per diluted share. The increase was driven primarily by the increase in gross profit and a strong performance from the company’s Ardent Mills joint venture. Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, increased 21.5% to $710 million in the quarter. The adjusted gross profit increased 21.7% to $933 million. Second quarter gross profit benefited from higher organic net sales and productivity, which more than offset the negative impacts of cost of goods sold inflation (including unfavorable commodity positions), unfavorable operating leverage, and continued elevated supply chain operating costs. The adjusted gross margin increased 310 basis points to 28.2%.

CAG in the second quarter of FY 23 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 66 cents, according to Refinitiv IBES data. The company had reported the adjusted revenue growth of 8.3 percent to $2.48 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $3.26 billion.

Moreover, the reported and organic net sales for the Grocery & Snacks segment increased 6.8% to $1.3 billion in the quarter. Reported and organic net sales for the Refrigerated & Frozen segment increased 10.5% to $1.4 billion in the quarter. Net sales for the International segment decreased 1.3% to $259 million in the quarter.

Conagra forecast a 7% to 8% rise in full-year 2023 organic sales, excluding impact from foreign exchange, divested businesses and acquisitions, compared with the previous expectation of 4% to 5% growth. The company now expects adjusted profit per share for 2023 to rise between 10% and 14%, compared with 1% to 5% growth it had forecast earlier. FY 23 Adjusted operating margin is expected to be between 15.3% and 15.6%