Campbell Soup Company has recorded a 11% decline in third-quarter net sales, as stockpiling decreases relative to the start of the pandemic.
The company’s net sales decreased to $1.98 billion compared to $2.24 billion the same time last year – when Campbell benefitted from increased demand for food purchases amid the peak of the Covid-19 pandemic.
The company’s meals & beverages unit witnessed net sales fall by 14% to $1.04 billion, mainly due to declines across US retail products including soup and Prego pasta sauces; as well as declines in Canada and foodservice.
In the three months ended 2 May, sales of US soup fell 21% due to volume declines in condensed soups, ready-to-serve soups and broth.
Meanwhile, Campbell’s snacks division recorded a net sales decline of 8% to $945 million, driven by volume declines in its salty snacks portfolio such as Pop Secret popcorn, Cape Cod potato chips and Snyder’s of Hanover pretzels.
The US processed food company has updated its full-year sales guidance to reflect its Q3 results and the sale of its Plum Organics baby food and snacks business. Campbell now expects a sales decline of 3% to 3.5%, compared with the 2.5% to 3.5% fall it projected in the second quarter.
“While we recognised the third quarter would be a challenging net sales comparison to the demand surge at the onset of the Covid-19 pandemic a year ago, we faced additional headwinds,” said Mark Clouse, Campbell Soup Company president and CEO.
“Our results were impacted by a rising inflationary environment, short-term increases in supply chain costs, and some executional pressures as we continued to advance our transformation agenda, primarily in our snacks division.
“We are confident that these are all addressable, and we are taking appropriate actions, including putting pricing in place for the next fiscal year. Our confidence is further strengthened by the underlying health of our brands.”
Campbell says nearly three-quarters of its brand portfolio gained or held share, highlighting strong brand health and continued momentum.
© FoodBev Media Ltd 2020
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