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Packaged food companies such as Campbell, Kraft Heinz and
Kellogg Co have been hiking the prices of their meals, beverages
and snacks to offset higher input costs stemming from supply
chain snags and the Russia-Ukraine war.
Peer J M Smucker had forecast a smaller-than-expected decline in
annual sales on the back of higher prices and steady demand for
its products.
Campbell's average selling price rose 12% in the quarter, but a
7% decline in total volumes signaled that Americans pressured by
rising food prices were moving away to private-label products
that are more affordable.
Its shares fell about 2% in volatile premarket trading.
The company maintained its annual net sales forecast for an 8.5%
to 10% rise and adjusted profit expectations of $2.95 to $3.00
per share.
Campbell's third-quarter gross profit margin was 30%, compared
with 31.2% a year earlier, squeezed by still-high prices of
commodities and freight as well as higher marketing expenses.
Excluding one-time items, the Goldfish crackers maker earned 68
cents per share in the quarter, beating analysts' estimates of
64 cents per share, according to Refinitiv IBES data.
The company's net sales rose 5% to $2.23 billion, in line with
expectations.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by
Devika Syamnath)
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