Campbell Soup Sees Boost from Eat-at-Home Trend in Q3 Results

Published 3 hours agoCPB

Campbell Soup Sees Boost from Eat-at-Home Trend in Q3 Results

Campbell Soup Company recently revealed a 7% rise in net sales to $2.13 billion for its third-quarter fiscal 2024, thanks to inflation-driven pricing and sales allowances. This growth comes even as Campbell faces some volume declines due to supply challenges. Additionally, the company reported a significant 9% increase in organic net sales when excluding the sale of the Plum baby food and snacks business.

Supporting these robust sales, Campbell Soup's adjusted gross margin improved by 90 basis points, reaching 31.5%. This improvement is attributed to supply chain productivity and successful cost-saving measures. However, the company's adjusted earnings per share dipped to $0.44 from $0.53 in the previous year, partly due to $0.30 per share in costs associated with savings initiatives and the acquisition of Sovos Brands. According to industry reports, costs related to this acquisition totaled $93 million, covering restructuring and other expenses. Campbell's focus on soups and frozen meals, paired with the recent Sovos Brands acquisition, has led to an updated annual sales forecast of 3%-4% growth, Reuters notes.

Campbell Soup is pushing forward with strategic initiatives, particularly its cost savings plan expected to generate $1 billion in annual savings by the end of 2025. These efforts align with the company's broader strategy to tap into the growing popularity of at-home dining, expanding its product range and improving operational efficiencies.

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