Campbell's beats third-quarter estimates as eat-at-home trend boosts demand

Reuters

3 days ago

June 2 (Reuters) - Campbell's Co (CPB.O), opens new tab beat estimates for third-quarter sales and profit on Monday, helped by strong demand for its popular canned food and soups such as Chunky soups and Pace salsa as consumers prefer to eat at home amid an uncertain economy.
Fears of a potential recession and price hikes triggered by the imposition of hefty tariffs dented consumer sentiment in the U.S. and prompted people to be more judicious in their spending patterns, including trading down to cheaper brands and ditching costly dine-outs.
"Consumers are cooking at home at the highest levels since early 2020 and turning to our brands for value, quality and convenience," said Campbell's CEO Mick Beekhuizen.
The company has introduced new products such as the Milano white chocolate cookie through its Pepperidge Farm brand and Pop'ums, a snack hybrid combining pretzels and popcorn, to revive demand in its snacks business.
Net sales rose 4% to $2.5 billion during the quarter ended April 27, compared with analysts' average estimate of $2.43 billion, according to data compiled by LSEG.
Its adjusted per-share profit of 73 cents also beat the estimate of 66 cents.
Volumes for the company's meals and beverages unit rose 7%, while its snacks business reported a 5% fall.
The company maintained its fiscal 2025 forecast for net sales growth in the range of 6% and 8%, excluding the impacts of tariffs.
It, however, expects annual adjusted profit per share to be at the lower end of the prior forecast range of $2.95 and $3.05, owing to weak demand for snacks.