Campbell Soup Company has recorded a 4% decrease in first-quarter net sales to $2.24 billion, citing pricing and sales allowances as a contributing factor.
During its first-quarter fiscal 2022, the company notes a 6% decrease in volume and mix as a result of “cycling retailer inventory recovery in the prior-year quarter and supply pressures, as well as some spend back on promotional spending worth 2%.”
Net earnings decreased by 15% to $389 million from $457 million compared to the same time last year.
Sales decreased in both Campbell’s meals & beverages and snacks units, with volume declines across US and Canadian retail products. Sales of US soup decreased 2%, cycling a 21% increase in the prior-year quarter, due to declines in ready-to-serve and condensed soups, partly offset by gains in broth.
Meanwhile, Campbell’s snacks unit net sales in the quarter decreased 1% to $970 million as favourable price and sales allowances were offset by volume declines and increased promotional spending compared to moderated levels in the prior-year quarter.
This decrease was partially offset by gains in Goldfish crackers and Pepperidge Farm cookies.
Mark Clouse, Campbell’s president and CEO, commented: “We are pleased with our first-quarter results as consumer demand for our brands remained elevated, and pricing paired with productivity moderated inflation-driven margin pressure”.
He added: “Topline was tempered by the expected cycling of year ago retailer inventory replenishment and some industry-wide supply chain disruptions. We expect the steps we are taking to continue to address labour challenges, drive net price realisation and improve productivity will lead to solid year-over-year earnings growth in the second half allowing us to maintain our full-year fiscal 2022 guidance.”
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