By Dhirendra Tripathi

Investing.com – Conagra Brands (NYSE:) stock traded 2% higher Thursday after the company raised its annual forecast for organic net sales despite cost pressures.

Core net sales are expected to increase by over 4% this year, compared with its earlier forecast of over 3.3%.

Transportation costs have risen due to strained supply chains and growing economies. The prices of edible oils, corn, wheat, protein, and other ingredients have reached record levels. To alleviate cost pressures, companies have increased prices with mixed results.

The company doesn’t expect to be able to offset all the costs in current year due the delay in implementing the price increases. The company expects the adjusted operating margins, which are now around 14.5% due to inflationary expectations that have risen to a higher level.

Adjusted profit per share should come in at around $2.35, lower than the previous forecast of $2.5, according to the company’s new forecast.

Notwithstanding the difficulties, the company saw an increase in its net revenues of over 5% to $2.91 Billion by the end February 27. Margin losses were significant.

The adjusted profit per share dropped 1.7% to $58, but it was still higher than expected.