Campbell Soup (NYSE:CPB) moved sharply higher Wednesday on first-quarter statistics. The food giant beat estimates by 14 cents with adjusted quarterly earnings of $1.02 per share. Revenue also beat consensus and the food producer said its results were helped by strong pricing, improved productivity and supply chain improvements.
The food giant reported Net Sales and Organic Net Sales increased 15% due to inflation-driven pricing, brand strength and continued supply recovery.
Earnings Before Interest and Taxes (EBIT) increased 16% to $436 million. Adjusted EBIT increased 15% to $449 million. Earnings Per Share (EPS) increased 15% to $0.99. Adjusted EPS increased 15% to $1.02.
Campbell then raised full-year fiscal 2023 guidance based on strong first-quarter results, sustained brand momentum and strengthened supply chain.
Said CEO Mark Clouse. "Through a combination of inflation-driven pricing actions and productivity improvements, we have substantially mitigated significant inflationary pressure in the quarter while continuing to provide quality and value to consumers. We are investing in the equity of our brands through effective marketing, delivering robust innovation and deploying efficient capital spending to ensure we continue to fuel improving in-market shares and growth. With the momentum of our strong first-quarter performance and confidence in our strengthened supply chain, we are raising our full-year fiscal 2023 guidance while taking into account the volatile economic environment."
CPB opened Wednesday up $2.04, or 3.9%, to $55.03.
