Packages of Birds Eye food, a brand owned by Conagra Brands, are seen at a store in Manhattan, New York, the United States, November 15, 2021. REUTERS / Andrew Kelly / File Photo

Jan. 6 (Reuters) – Conagra Brands Inc (CAG.N) missed market estimates for quarterly profits on Thursday as jerky maker Slim Jim was hit by soaring commodity prices and rising costs shipping.

The margins of packaged food companies have come under pressure in recent months due to soaring prices for commodities such as wheat, sugar and edible oils, while an overloaded supply chain has made increase transport costs.

This prompted Conagra to raise prices, which, along with sustained trends in home cooking, helped the company’s net sales rise 2.1% in the second quarter.

It also raised its annual baseline sales forecast to an increase of about 3% from its previous estimate of 1% growth.

Net income attributable to Conagra fell to $ 275.5 million, or 57 cents per share, in the quarter ended Nov. 28, from $ 378.9 million, or 77 cents per share, a year earlier.

Excluding one-off items, Conagra gained 64 cents per share, below estimates of 68 cents per share.

Report by Deborah Sophia in Bengaluru; Editing by Aditya Soni

Our Standards: Thomson Reuters Trust Principles.