Campbell posts 7% rise in Q1 revenue driven by soup sales

Campbell Soup Company has recorded a 7% increase in first-quarter net sales to $2.34 billion during what it calls the “heart of soup season”.

During its first-quarter fiscal 2021, the company continued to witness elevated demand for its brands thanks to increased at-home food consumption amid the Covid-19 pandemic.

In the three months ended 1 November 2020, net earnings rose to $309 million from $166 million the same time last year.

Sales were driven by gains in both Campbell’s meals & beverages and snacks units, with strong volume recorded in both the US and Canada.

Despite a partial offset in foodservice, the company’s meals & beverage unit recorded a 12% rise in net sales to $1.34 billion, driven by strong performances in US soups, Prego pasta sauces, V8 beverages, Campbell’s pasta and Pace Mexican sauces.

Sales of US soup went up by 21% due to retailers rebuilding inventory for the upcoming soup season and in-market gains in condensed soups and broth.

Meanwhile, Campbell’s snack unit net sales increased 1% in the quarter to $998 million. Excluding the impact from the sale of the European chips business, organic sales of its snacks unit increased 4% including volume gains in fresh bakery products, Pepperidge Farm cookies and Kettle Brand chips.

“Fiscal 2021 is off to a strong start with first-quarter sales growth across both divisions and double-digit gains in EBIT and EPS,” said Mark Clouse, Campbell’s president and CEO.

He added: “Our Meals & Beverages division continued to drive impressive sales and margin growth as we positioned our brands to align with macro consumer trends, and retailers rebuilt inventory for the holidays and the heart of soup season.

“Snacks continued to deliver strong results while increasing capacity in key power brands. We continue to build a high-performing Snacks business with differentiated brands and improving margins.”