(Reuters) -General Mills exceeded analysts' expectations for quarterly sales on Wednesday, as price hikes on its breakfast cereals, snack bars and pet food products helped cushion a blow from slowing demand.

Shares of the Minnesota-based company, which have fallen more than 21% this year, rose more than 1% in premarket trade, as it also reaffirmed its annual sales and profit targets.

Packaged food makers have hiked product prices multiple times over the past year, in a bid to counter the spiraling impact from higher labor, stronger dollar and raw material costs, even as some of these expenses have now eased from their peaks.

General Mills' gross margin rose 540 basis points to 36.1% in the first quarter

The Cheerios cereal maker reported net sales $4.91 billion in the first quarter compared with $4.72 billion a year earlier. Analysts had expected sales of $4.88 billion, according to LSEG data.

(Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri)