Nov 26 (Reuters) -

Jif peanut butter maker JM Smucker raised annual

profit forecast and beat second-quarter estimates on Tuesday,

benefiting from resilient demand for packaged and frozen foods

and coffee price hikes.

Shares of the Ohio-based company were up about 5% in

premarket trading, with it keeping its annual sales target

intact.

With living costs continuing to remain high, consumers

are increasingly opting to cook at home instead of dining out,

which has led to a steady demand for the company's essential

home goods, including coffee, jams, and spreads, even in the

face of price increases.

The price hikes helped JM Smucker to counter soaring coffee

prices, which have been pushed up by supply chain disruptions.

Smucker's U.S. retail coffee business saw sales in the

quarter rise 3% to $704 million. Overall quarterly margins to

rise 39% from 37.4% a year earlier.

The Dunkin' coffee maker's results came in contrast with

packaged food peers Kraft Heinz ( KHC ) and Conagra Brands ( CAG )

, which reported disappointing sales as customers traded

down for cheaper alternatives.

Smucker now expects annual adjusted earnings per share in

the range of $9.70 to $10.10, compared with the prior forecast

of $9.60 - $10.00.

In the quarter ended Oct. 31, on an adjusted basis, the

company posted quarterly profit of $2.76 per share, above

estimates of $2.51, according to data compiled by LSEG.

The company posted net sales of $2.27 billion for the

quarter, compared with analysts' average estimate of $2.26

billion, according to LSEG data.