Campbell Soup Company (NYSE:CPB) projected annual sales growth exceeding Wall Street estimates, driven by recent price hikes and strong demand for its soups and ready-to-eat meals.
The company forecasts annual sales growth between 9% and 11% for fiscal 2025, exceeding Wall Street's expectation of an 8.92% increase.
This optimism stems from the benefits of recent price hikes and robust demand for its soups and ready-to-eat meals as consumers shift from dining out to more affordable at-home options.
But its quarterly sales figures came in just below Street expectations, causing its stock to lose 1.5% on Thursday.
For fiscal 2024, Campbell reported solid fourth-quarter performance, with significant volume improvements and margin expansion.
Net sales rose 11% to $2.3 billion, bolstered by the Sovos Brands acquisition. However, organic net sales saw a slight decline of 1% to $2.0 billion due to a 2% drop in net price realization.
Adjusted EBIT surged 36% to $329 million, driven by higher adjusted gross profit from both the acquisition and base business performance, while adjusted EPS increased by 26% to $0.63.
Campbell’s CEO, Mark Clouse, highlighted the ongoing recovery in the industry and the company's strategic advancements.
“The strength of the Meals & Beverages recovery, including Soup, was a standout in the quarter as was the competitive advantage of our supply chain,” Clouse said in a statement.
“The integration of Sovos Brands is progressing ahead of our expectations, marking a transformative shift in our Meals & Beverages growth trajectory. We’ve also advanced our Snacks margin journey, while delivering significant innovation and improved sales and marketing capabilities.
“All of this provides continued confidence in our ability to deliver sequential progress in fiscal 2025 as we continue to navigate the steady and ongoing recovery in the industry.”