Investir.com — Campbell’s Soup (NYSE:) Better-than-expected third-quarter earnings, in part due to slightly higher prices, but volumes fell, a sign that inflation-hit U.S. shoppers were looking for more affordable options.
The maker of canned soups and biscuits raised prices for its items to counter rising input costs related to supply chain constraints and the ongoing conflict in Ukraine. The increase was also seen in peers like Kraft Heinz (NASDAQ:) and Kellogg (NYSE:).
Prices were up 12% in the three months to April 30, although this was partly offset by a 7% decline in volume and mix.
Shares of Campbell Soup fell in premarket trading on Wednesday.
Quarterly net sales increased 5% from the same period last year to $2.2 billion, meeting expectations. The result helped lift adjusted earnings per share to $0.68, beating Bloomberg consensus estimates of $0.65 per share.
However, high shipping and marketing costs caused the gross profit margin to drop slightly to 30%.
The group also reiterated its guidance for fiscal 2023 for adjusted profit of $2.95 to $3.00 on a net sales gain of 8.5% to 10%.