Campbell suffers 11% net sales plunge in Q3
Campbell Soup Company has recorded net sales of $1.98 billion in the third quarter, dropping 11 percent from the $2.24 billion in the same period last year when the pandemic's peak triggered an increased demand for food purchases.
The meals & beverages unit's sales dropped by 14 percent to $1.04 billion, mainly due to declines in the US for products such as soup and Prego pasta sauces, compounded by sales declines in Canada and food service.
In the three months ended May 2, US soup sales plunged 21 percent, with volume declines in ready-to-serve soups, condensed soups, and broth.
Meanwhile, the snacks division posted an 8 percent net sales to $945 million. It offered such salty snacks as Pop Secret popcorn, Cape Cod potato chips, and Snyder’s of Hanover pretzels.
Campbell updated its full-year sales guidance to reflect its third-quarter results. It now expects a sales decline of 3 to 3.5 percent, compared with the 2.5 to 3.5 percent drop it projected earlier.
Mark Clouse, Campbell Soup Company President and CEO, revealed that on top of challenging sales comparison to last year's demand surge at the onset of the pandemic, they are also impacted by short-term increases in supply chain costs, a rising inflationary environment, and some execution pressures.
Clouse noted that all the issues are addressable and that the company is taking appropriate actions, such as putting pricing in place.