Investing.com -- Campbell Soup (NYSE:CPB) has reported better-than-anticipated adjusted earnings in its fiscal second quarter as cost cutting and higher prices helped make up for a slight decline in volumes.
Like many packaged food companies, Campbell has been raising prices for its snacks and beverages like its eponymous tomato soup and Goldfish crackers to offset increased input costs fueled by recently elevated inflation.
While the move has helped to bolster Campbell's recent top-line returns, cost-conscious shoppers have been ratcheting back spending in favor of cheaper items.
Total volumes dropped by 2% in the three months ended on Jan. 28, while net prices grew by 1%. Overall sales in the quarter decreased by 1% to $2.46 billion, just above Bloomberg consensus expectations of $2.44 billion.
A push to rein in expenses and supply chain productivity improvements, meanwhile, were cited by the firm as partial drivers of quarterly earnings. Adjusted income per share during the period was $0.80, matching the year-ago period. Wall Street had called for $0.77.
“We once again delivered on our commitments, with a sequential improvement in volume trends and year-over-year operating margin expansion in both our Meals & Beverages and Snacks divisions,” said Campbell's Chief Executive Mark Clouse in a statement.
For its 2024 fiscal year, the group backed its previously stated guidance for adjusted per-share earnings of $3.09 to $3.15.
Shares were mostly unchanged in early U.S. trading on Wednesday.