- Campbell Soup beat profit estimates and issued better-than-expected guidance as it benefited from higher prices.
- The food company reported strong demand for its cookies and crackers, particularly the Lance and Goldfish brands.
- CEO Mark Clouse said Campbell has successfully navigated today's consumer landscape.
Rising prices helped Campbell Soup's (CPB) earnings beat expectations, and shares jumped more than 7% on Wednesday, leading the S&P 500's gains.
The maker of soups and other foods reported earnings per share (EPS) of $0.91 for the first quarter of fiscal 2024, beating estimates. Revenue fell 2% from a year earlier to $2.52 billion, in line with expectations. The company noted that while its volume/mix fell 5% from last year's levels, this was partially offset by net price realization of 3%.
Sales at Campbell's Meals & The Beverages unit fell 4% from last year due to lower demand for its soup in the United States. Sales in its Snacks division fell 1%, but excluding the impact of the disposal of the Emerald Nuts business, organic sales increased 1%. Campbell said demand was strong for cookies and crackers, particularly for the Lance and Goldfish brands. The Snacks group also benefited from a net price realization of 5%.
CEO Mark Clouse said the company continued to “effectively navigate today's consumer landscape.” He added that the important holiday season is off to an encouraging start and “we plan to build momentum for the remainder of the financial year.” Campbell expects full-year 2024 EPS to be between $3.09 and $3.15, above analyst forecasts. forecasts.
Despite Wednesday's gains, Campbell Soup shares have lost nearly a quarter of their value this year.
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