May 2 Reuters PopTarts maker Kellanova on Thursday beat Wall Street estimates for firstquarter sales and profit on higher prices and firm demand for its breakfast cereals and readytoeat snacks, sending its shares up about 9 in early trading.

Kellanova39;s diverse portfolio, which includes Grahams Crackers, NutriGrain breakfast bars and frozen food like Morningstar Farms, and premium pricing have helped mitigate the impact of some consumers shifting to lowerpriced alternatives.

The company said prices rose 8.5 in the quarter, while organic sales volumes fell 3.1.

In the nearterm, however, it is evident volumes will be critical for the company to see topline growth as there39;s likely no more room to push pricing further as consumers remain under pressure, Third Bridge analyst John Oh said.

Kellanova39;s reported net sales of 3.20 billion in the three months ended March 30, beat analysts39; expectations of 3.16 billion, according to LSEG data.

The company, also home to internationally recognized cereal brands such as Frosties and Special K, posted an adjusted profit of 1.01 per share for the quarter, surpassing expectations of 85 cents.

Higher prices also helped drive its adjusted gross margin to 35.7 from 31.0 a year earlier.

Peer Conagra Brands also posted upbeat quarterly results last month, helped by a rebound in demand for its pantry staples and frozen foods.

Reporting by Annett Mary Manoj in Bengaluru; Editing by Milla Nissi and Sriraj Kalluvila

Source Reuters