In what is becoming a familiar pattern, higher product prices carried Campbell Soup Co. to a successful first fiscal quarter despite a slight decline in volume sales.
Campbell’s net sales for the quarter ending Oct. 30 were $2.58 billion, a 15% increase over the same period last year. Adjusted earnings were $449 million, also a 15% increase.
As it has previously, Campbell’s success was due in large part to increasing the prices of its products, although managers also credited "brand strength and continued supply recovery." Overall product volume was down 1% for meals and beverages and 2% for snacks in the quarter. It also benefited from $10 million in savings in the quarter from a “multi-year cost savings program,” according to a company release.
Sales increased by 15% for both segments. Operating earnings for meals and beverages were $331 million, an 18% year-over-year increase, and $153 million for snacks, up 20%.
“Our strong first-quarter results reflect our continued success in driving the relevance of our brands and improving our execution across our supply chain,” CEO Mark Clouse said in a statement.