Campbell Soup leads S&P 500 as higher prices help

Campbell Soup leads S&P 500 as higher prices help profits beat forecasts

Campbell Soup slog prognoserna och gav vägledning före förväntningarna eftersom den gynnades av högre priser. Livsmedelsföretaget rapporterade en stark efterfrågan på sina kakor och kex, särskilt varumärkena Lance och Goldfish. VD Mark Clouse sa att Campbell effektivt har navigerat i det nuvarande konsumentlandskapet.

Campbell Soup beat forecasts and provided guidance ahead of expectations as it benefited from higher prices. The food company reported strong demand for its cakes and biscuits, especially the Lance and Goldfish brands. CEO Mark Clouse said Campbell has effectively navigated the current consumer landscape.

Higher prices helped earnings and guidance from Campbell Soup (CPB) beat expectations, and shares rose over seven percent on Wednesday, leading to gains on the S&P 500.

The maker of soups and other foods reported first quarter 2024 earnings per share (EPS) of $0.91, beating estimates. Revenue fell by two percent from the previous year to 2.52 billion dollars, in line with expectations. The company noted that although its volume/mix fell by five percent from last year’s levels, it was partially offset by a three percent net price realization.

Sales at Campbell’s Meals & Beverages unit fell by four percent from a year ago as a result of reduced demand for its soup in the US. Sales at its Snacks division fell by one percent, but excluding the impact of the divestment of the Emerald Nuts business, organic sales increased by one percent. Campbell indicated that demand was high for cakes and biscuits, especially the Lance and Goldfish brands. The snacks group also benefited from a net price realization of five percent.

CEO Mark Clouse said the company continued to “effectively navigate the current consumer landscape.” He added that the important holiday season is off to an encouraging start, and “we expect to build momentum for the balance of the financial year.” Campbell expects full-year 2024 EPS to be between USD 3.09 and 3.15, above analysts’ forecasts.

Despite Wednesday’s gains, shares in Campbell Soup have lost almost a quarter of their value this year.

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