Campbell Soup Company (NYSE:CPB) has delivered third-quarter revenue that was bang in line with analyst expectations but earnings that simmered slightly above consensus.
The food company grew revenue by 5% to $2.23 billion for the quarter ended April 30, 2023, as it raised prices in an inflationary environment. Growth was held back by an expected decline in volume/mix, it said in a statement.
Adjusted earnings per share (EPS) declined by 3% to $0.68 but came in ahead of the $0.64 expected by Wall Street.
“Our third-quarter results were in line with our expectations and were driven by in-market momentum, continued best-in-class supply chain execution and favorable inflation-driven net price realization, all despite the anticipated challenging comparison from the prior year's retailer inventory rebuild,” Campbell president and CEO Mark Clouse said.
“Our year-to-date results and execution give us continued confidence in our ability to deliver our full-year guidance, with adjusted EPS currently tracking to the upper end of our guidance range."
The company reaffirmed its full-year net sales and adjusted EPS guidance, despite the recent divestiture of its Emerald nuts business, which closed on May 30, 2023. It said its guidance is inclusive of the lost sales and profits of that business.
Organic net sales for FY 2023 are expected to be 8.5% to 10% above 2022 levels, while adjusted EPS is likely to be 3.5% to 5% higher at between $2.95 and $3.
The company’s shares were down 3.2% at $48.98 in pre-market trading.
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