Campbell Soup Company has recorded a 5% net sales increase in its second-quarter results, as consumers continue to stock up on its soup and sauce products.
The company posted net sales of $2.28 billion, up from $2.16 billion at the same time last year. Net earnings for the quarter stood at $245 million.
Campbell’s second-quarter follows in the same footsteps as Q1, which saw a 7% rise in net sales. Heightened demand for at-home food consumption meant both divisions performed well; yet sales remained to be partially offset by declines in foodservice.
In the three months ended 31 January 2021, net sales of the company’s meals & beverages unit rose by 6% to $1.30 billion, following elevated demand for soup, V8 beverages, Prego pasta sauces and Campbell’s pasta across US retail.
US soup sales continued to perform well in Q2, growing by 10% due to volume gains in condensed soups and ready-to-serve soups; however, this was modest in comparison to the 21% boost in the last quarter. At the same time last year, net sales of US soup rose by only 1%.
Sales in Campbell’s snacks unit went up by 4% to $979 million, driven by higher volumes of salty snacks including Kettle Brand potato chips, Late July snacks and Pop Secret popcorn. Growth was also supported by a strong performance by the company’s fresh bakery products, such as the Pepperidge Farm Farmhouse brand, as well as less promotional spending.
Mark Clouse, Campbell’s president and CEO, said: “We delivered another quarter of strong results, with top-line growth in both segments – partly tempered by foodservice and supply constraints caused by Covid-19 – as well as continued growth in EBIT and EPS.
“In addition, nearly 75% of our brands grew or held share which was an important goal for the quarter. Given this strong performance, we are providing full-year fiscal 2021 guidance and we are confident in the long-term growth potential of Campbell.”
Campbell has forecast full-year 2021 sales to fall between 3.5% to 2.5%.
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