Campbell Soup Company Beat Quarterly Estimates with Steady Demand for Quick Meals and Cookies

Campbell Soup Co. slightly exceeded quarterly estimates due to steady demand.

Campbell Soup Co. announced on the 6th that its quarterly sales and profits slightly exceeded market estimates, maintaining its annual forecast. The company’s stock rose 2% in early trading due to high prices and sustained demand for branded instant foods and cookies. The price of all Campbell products increased by 1%, but the total volume decreased by 2% during the reported quarter.

Campbell CEO Mark A. Clouse said, “We have seen healthy volume and dollar share growth in categories such as condensed cooking soup, broth, Pepperidge Farm cookies, and Pepperidge Farm stuffing.”

He added, “The demand for cooking at home remains strong as budget-conscious consumers are increasing meals and reducing shopping trips.”

Net sales in the company’s largest revenue source, a meals & beverages segment, decreased by 2% due to weakened demand for retail products in the U.S., including instant soup and Pace Mexican Sauce.

The pace of price increases has slowed from last year’s mid-double-digit rise as most food companies try to limit prices to cope with falling demand.

Despite this, Campbell continues to take a cautious stance on consumer spending recovery and said its sales growth rate is tracking the lower end of its annual net sales forecast range.

According to LSEG Data & Analytics, Campbell’s second-quarter net sales were $2.46 billion, slightly exceeding the average estimate of $2.44 billion.

It also recorded adjusted net earnings per share of 80 cents, surpassing analysts’ estimates of 77 cents.

Campbell is set to close the acquisition of Sovos Brands, a sauce manufacturer, next week and has reaffirmed its net sales and revenue targets for the 2024 fiscal year for the second time in a row.