Increased investment in “modern” marketing is helping Conagra’s bottom line, the company says, particularly in refrigerated and frozen.

The maker of Duncan Hines, Slim Jim, Boomchickapop and Gardein posted a net Q3 sales boost of 5.9% to $3.1 billion USD. Net income attributable to Conagra Brands increased 56.4% to $342 million USD.

Operating profit for the international segment increased 24.3% to $37 million USD.

Selling, general and administrative expense (SG&A), which includes advertising and promotional expenses, increased 3.2% to $349 million in the quarter.

Advertising and promotional spend for the quarter increased 23.9% to $81 million USD, driven primarily by increased investment in what the CPG calls modern marketing, including social and digital platforms.

“We delivered another quarter of strong results reflecting the ongoing strength of our brands and successful execution of the Conagra Way playbook,” says Sean Connolly, president and chief executive officer of Conagra Brands, referring to a company philosophy that growth is essential and brands are fueled by innovation.

Operating profit for the refrigerated and frozen segment increased 66.9%. In the quarter, the company gained share in categories such as frozen sides, plant-based protein and frozen breakfast sausage, which are up almost 20% versus a year ago. Profit for the snacks and grocery segment, which includes brands like Hunts tomato sauce and Orville Redenbacher, increased 10.8%.

In this morning’s earnings call, Connolly said innovation in frozen and snacks is key, and that its brand strength and innovation pipeline will contribute to solid gross margins going forward.

According to Connolly, it successfully executed pricing actions thanks to inflation. It is making progress on value over volume, and productivity. “We are already seeing performance in sales trends,” Connolly said, adding that the impact of private label competition is “minimal.”

Conagra adjusted its guidance, with organic net sales growth expected to be 7% to 7.5% compared to fiscal 2022.