Campbell Soup beat Wall Street estimates for third-quarter profit on Wednesday and maintained its annual forecasts, as the maker of Pepperidge Farm cookies benefited from multiple rounds of price increases.
Packaged food companies such as Campbell, Kraft Heinz and Kellogg 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.
Food Prices Increase
Campbell's average selling price rose 12% in the quarter, but a 7% decline in total volumes signalled that Americans pressured by rising food prices were moving away to private-label products that are more affordable.
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.
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.
Campbell Soup Co raised its annual sales forecast on 8 March after its quarterly results topped Wall Street estimates, powered by higher prices, improved supply and strong demand for packaged meals and snacks.
The company's shares rose about 1% pre-market after it also lifted the lower end of its 2023 earnings outlook.
While inflation has strained household budgets, Americans are still snacking on Campbell's cookies and salty snacks while a continued preference for cooking at home bolstered demand for its ready-to-eat meals.
The company's net sales rose 5% to $2.23 billion, in line with expectations.