Campbell Soup Co on Wednesday revised up its full-year sales and profit forecasts, as supply chain issues have begun to ease and demand for its meals remained steady despite higher prices.
The company now expects a 7% to 9% growth in net sales for fiscal year 2023, up from a previously expected growth range of 4% to 6%.
Campbell Soup’s net sales went up 15% year-on-year to $2.58 billion during its fiscal first quarter, while exceeding a consensus of analyst estimates of $2.45 billion.
As production and shipping challenges eased, the Prego pasta sauces owner was able to supply more of its products to retailers.
“This quarter demonstrates that packaged food companies are still operating in a highly favorable operating environment. How long will this continue is the million-dollar question,” CFRA Research analyst Arun Sundaram was quoted as saying by Reuters.
In the first quarter, the average selling prices across Campbell’s meals & beverages as well as snacks divisions surged 16% year-on-year, but total sales volumes dropped 1%.
Campbell Soup Co now expects adjusted earnings within the range of $2.90 to $3.00 per share for fiscal year 2023, up from a prior forecast of $2.85 to $2.95 per share.
The shares of Campbell Soup Company (CPB) closed 6.02% ($3.19) higher at $56.18 in New York on Wednesday, with the company’s total market capitalization now standing at $16.82 billion.
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