Campbell Soup Co forecast annual core sales above estimates, even as soaring costs took a bite out of the Prego pasta sauces owner's bottom line in the fourth quarter.
Packaged food makers have steadily raised prices on everything from cookies to beef jerky as they try to insulate their margins from increased costs ranging from labour and ingredients to transportation without drawing consumer ire.
Campbell has previously announced that it expects inflationary pressures to continue and that a third round of pricing action will take effect on certain categories as fiscal 2023 begins.
The roughly 150-year-old company expects fiscal year 2023 net sales to grow between 4% and 6%, higher than the average analyst estimate of a 2.7% rise.
It also expects adjusted earnings per share between $2.85 and $2.95, compared to expectations of $2.92 for the year.
Commenting on the company's full year performance, president and CEO of Campbell Mark Clouse, said, “During fiscal 2022, we demonstrated a significant step up in execution across the company with improved supply chain performance and effective revenue management to counter inflation.
“Our solid foundation and momentum will serve us well in fiscal 2023 as we continue to make progress on unlocking Campbell’s full growth potential.”
The company's net sales rose 6% to about $2.0 billion (€2 billion) in the quarter, compared with market estimates of $1.99 billion, according to IBES data from Refinitiv.
Net earnings attributable to the company plunged to $96 million (€96 million), or 32 cents per share, in the fourth quarter ended 31 July, from $288 million (€288.1 million), or 95 cents per share, a year earlier.
Excluding one-time items, the company earned 56 cents per share, in line with estimates.
News by Reuters, additional reporting by ESM. For more retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.