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Kellogg gave a more optimistic sales outlook for the full year as higher prices in North America and strong international demand help the grain company weather rising supply chain costs.

The company behind the Fruit Loops cereal and Eggo waffles now expects net organic sales growth of 2-3% annually, down from an earlier estimate that revenues were flat at 1%.

Kellogg has reaffirmed its earnings and cash flow guidance, with increased sales expected to offset rising costs.

Consumer goods companies have raised prices and taken other measures such as smaller packaging to mitigate the impact of higher costs related to freight, commodities and wages. Oreo maker Mondelez raised its sales forecast this week by announcing higher-than-expected revenue for the third quarter, a sign that demand has held up despite higher prices.

Steve Cahillane, Managing Director of Kellogg, said the company was facing “an extremely difficult operating environment, marked by economy-wide bottlenecks and shortages and high cost inflation” .

“These business conditions don’t get any easier in the fourth quarter, especially with the added challenge of an ongoing labor disruption,” Cahillane added. “However, our underlying business momentum remains strong, particularly for our largest snacking and frozen food brands, and for our business in emerging markets.”

Workers at Kellogg’s US grain factories have been on strike since October 5. The union representing about 1,400 employees at four factories rejected the company’s latest offer on Wednesday evening, extending negotiations for a month on a labor agreement.

Kellogg’s net sales reached $ 3.62 billion in the three months to Oct. 2, up 5.6% year-on-year and above analysts’ estimate of $ 3.54 billion. In North America, net sales were roughly flat as lower volumes attributed to supply disruptions and a strong year-to-year comparison offset a positive price / mix.

The Michigan-based company earned $ 1.09 per share on an adjusted basis, which also beat consensus forecast of 93 cents.

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