(Reuters) – Campbell Soup (NYSE:) Co increased its core annual sales forecast Wednesday. This was due to higher prices and strong demand for its broths. The company’s shares climbed 3% in premarket trading.

The pandemic-driven surge in demand for packaged food is holding steady. However, price rises are also boosting revenue. In recent months, firms like Kraft Heinz (NASDAQ) Co have raised their annual forecasts.

Campbell also benefits from improving supply chain management and staffing. This has allowed it to increase production and inventory levels after more than one year of worker shortages and shipping strains caused by the pandemic.

It stated that it expected fiscal year 2022 organic sales to increase between 1% and 2 percent, as opposed to its earlier estimate of a 1-1% decline.

From $1.98billion a year ago, net sales increased to $2.13billion in the quarter that ended May 1. According to Refinitiv IBES data, analysts expected an average revenue of 2.05 billion.

From $160 million or 52 cents a share a year ago, the net earnings of the company increased to $188million, or 62cs per share.