Deborah Mary Sophia, Mehr Bedi

(Reuters] -Kraftheinz Co announced on Wednesday that they would increase the prices for its snack and condiment products to combat rising raw material costs. This comes after posting higher quarterly earnings than expected.

The shares of Chicago-based firm rose by as high as 6% during morning trading

Last year, the pandemic was won by packaged food manufacturers as a result of stuck-at home consumers buying frozen soups, sauces and meals.

However, a strained supply chain has increased freight and labor costs and caused problems for Kraft, Conagra and Kellogg, (NYSE:), which are struggling with rising prices of grain, meat and edible oil.

John Boylan of Edward Jones, an analyst with Edward Jones stated that Kraft Heinz is better at navigating rising cost and driving demand than they thought. He added that the company’s foundation has been solid by cutting costs and delisting slow businesses.

Kraft (whose brands include Philadelphia Cream Cheese, Heinz Ketchup and Heinz Ketchup) said that it increased prices by 3.8 percent in the fourth quarter, when there was strong demand. The result was that 2021 margins will be higher than those in 2019.

According to Paulo Basilio, Chief Financial Officer, the company anticipates that inflation will be low teens for 2022. However, the levels of inflation in the first and second halfs are higher than the others.

Kraft’s full-year organic revenue is also expected to grow by a low single-digit percent, in comparison with the 1.8% growth seen in 2021.

The fourth quarter’s net sales decreased 3.3%, to $6.71billion. This was due to divestitures and acquisitions. But it still beats Refinitiv IBES estimates of $6.61billion.

Kraft, exempting all items, earned 79 cents per sen, exceeding analysts’ average estimate by 63 cents.