US food manufacturer Hormel Foods raised its full year guidance on the back of an 11% increase in net earnings for its third quarter.
The company posted $85m net earnings for the quarter ended 25 July, while sales reached $1.7bn, up 10% on the same period of the previous year.
The maker of Spam tinned meat products increased its full year guidance from between $2.75 to $2.85 a share up to $2.85 to $2.91 a share.
The company has also been facing raw materials increases with operating profit down 23% in its grocery products, despite a 16% volume increase.
“Our refrigerated foods segment had a strong quarter, benefiting from higher cutout margins, and our specialty foods segment continued its momentum this quarter on sales growth in all three of its business units. Our grocery products segment had a difficult quarter, hampered by higher raw material input costs,” said chairman, president and CEO Jeffrey Ettinger.