Campbell Soup beats quarterly estimates on steady demand for quick meals

Sovos Brands

06/03/2024 12:15

March 6 (Reuters) - Campbell Soup  CPB.N  topped market
expectations for quarterly sales and profit on Wednesday and
stuck to its annual forecasts, helped by steady demand for
branded ready-to-eat meals, snacks and canned soups.
    Prices across Campbell's products rose 1% while overall
volumes dipped 2% during the reported quarter, as holiday
promotions encouraged shoppers to indulge in its Goldfish
crackers and Pepperidge Farm cookies.
    The pace of price increases has slowed from last year's
mid-double-digit rise, as most food companies try to limit
pricing to cope with subdued demand.
    Packaged foods peers Kraft Heinz  KHC.N , Mondelez  MDLZ.O ,
McCormick  MKC.N , Hershey  HSY.N  and PepsiCo  PEP.O  have all
flagged softer volume growth in their latest quarterly results.
    Still, benefits from prior price hikes and easing supply
chains helped Campbell's gross profit margin climb 31.6%, from
last year’s 30.5%.
    The company, which is set to close its buyout of Rao's sauce
maker Sovos Brands next week, posted second-quarter net sales of
$2.5 billion, compared with analysts' average estimate of $2.44
billion, according to LSEG data.
    It logged adjusted earnings of 80 cents per share, better
than the 77 cents analysts were expecting. 
    The New Jersey-based firm reaffirmed its fiscal-year 2024
target for net sales and earnings for the second time in a row.

 (Reporting by Savyata Mishra in Bengaluru; Editing by Pooja
Desai)
 ((AnujaBharat.Mistry@thomsonreuters.com;))