Campbell's Soup says rising inflation impacted third-quarter profits
Sales of snacks fell 8% in third quarter while sales of soups and jarred pasta sauces dropped 14%
Campbell’s Soup isn’t looking too hot in a post-pandemic world.
The company, known for its soups, pasta sauces and snacks from brands like Pepperidge Farms and Prego, saw increased demand during the early days of the pandemic, however, sales of snacks fell 8% in the third quarter while sales of its soups and jarred pasta sauces dropped 14%, Campbell’s reported for its third-quarter earnings.
Campbell's Soup faces demand challenges amid post-pandemic. (Reuters)
It’s a sign that fewer consumers are continuing to stock up on shelf-stable items and packaged goods with restaurants back open as more Americans are vaccinated against COVID-19 and eating more meals outside of the household. Campbell's net sales decreased 11% in the third quarter compared to the same time last year during the height of the pandemic during stay-at-home orders.
CHIPOTLE INCREASING MENU PRICES TO OFFSET RISING EMPLOYEE WAGES
Campbell's CEO Mark Clouse said the company experienced rising costs for supplies such as raw materials in addition to freight costs and labor.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CPB | CAMPBELL SOUP CO. | 43.81 | +0.28 | +0.64% |
"Our results were impacted by a rising inflationary environment, short-term increases in supply chain costs, and some executional pressures," Clouse told investors on an earnings call Thursday.
Due to inflation, the company is "putting pricing in place" for the next fiscal year.
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Campbell's Soup's stock fell 6% as of Wednesday afternoon following its earnings report.