May 30 (Reuters) - Hormel Foods ( HRL ) beat market

expectations for second-quarter profit on Thursday and raised

the lower end of its full-year earnings as the Wholly dips maker

sees steady demand for higher-priced meat products.

The Spam brand owner expects an annual adjusted earnings per

share in the range of $1.55 to $1.65, compared with its prior

forecast of $1.51 to $1.65. Analysts on average were expecting a

profit of $1.58 per share.

Sales at its food service business grew 6% in the quarter,

helped by higher volume sales of its bacon, premium prepared

protein and turkey categories.

The company also said it benefited from lower logistics and

supply chain costs.

Hormel Foods ( HRL ) posted an adjusted profit of 38 cents per share

for the quarter compared with analysts' average estimate of 36

cents per share, according to LSEG data.

Overall, however, net sales fell 3% to $1.06 billion in the

second quarter ended April 28, as its retail business - the

biggest unit - declined due to lower volumes and pricing for its

whole turkey business.

Shares of the Austin, Minnesota-based company, which has

risen nearly 6% so far this year, climbed about 1% in premarket

trading.