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Campbell Soup to launch third wave pricing in fiscal 2022

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CAMDEN, N.J. — Campbell Soup Co. struggled to get the needle across as it continued its efforts to moderate inflation in the fiscal year that ended July 31.

“We continued to moderate inflation in the fourth quarter through our continued focus on targeted price increases and trade optimization, productivity improvements, cost reduction initiatives primarily in our supply chain, and discretionary spending globally. Campbell President and CEO Mark Claus discussed fourth quarter and fiscal 2022 results during a conference call with securities analysts on Sept. 1. .

“A particularly competitive segment was Total Salty Snacks, which was the only major player to grow unit share in the fourth quarter as we worked hard to maintain a balance between pricing and promotions as supply recovered.” Goldfish continues to deliver excellent results, driven by relevant innovations and award-winning marketing.

“Our Snacks segment organic net sales increased 6 percent, driven by 9 percent sales growth for our Power brands. Sales of cookies and crackers, centered on Kingyo Senbei, grew, and sales increased. Inflation-driven pricing and sales allowances were partially offset by higher promotional costs and lower sales volumes. ”

Snacks sales for the full year were $3.96 billion, up 3% from $3.86 billion last year. The Snacks segment posted net sales of $1.05 billion in the fourth quarter ended July 31, up 6% from $995 million in the fourth quarter last year.

Net income attributable to Campbell Soup Co. for the year ended July 31 was $757 million, or $2.51 per share, down 24% from $1 billion, or $3.31 per share, a year ago Diminished. Net sales for him were $8.56 billion, up slightly from his $8.48 billion the year before.

“Inflation and other factors had a negative impact of 810 basis points. Most of that impact came from cost inflation, with overall input prices up about 15% on a rate basis. “Finally, unfavorable sales volume and mix had a negative impact of 170 basis points on the quarter,” Close said.

When asked by analysts about the timing of pricing actions and promotional activity, Clouse said the company rolled out its third wave of pricing in the final month of fiscal 2022.

“This was designed to allow us to fully reflect and set our pricing right when we start in fiscal year 23,” he said. “But I think it slowed down a little bit in the month when we ran pricing, especially in relation to inventory recovery when we ran it. So I think it’s probably a couple of hundred basis points difference and moving to the timing in the first quarter.

“Perhaps even more encouraging is the continued strength of our portfolio of growing, relevant and unique power brands. 11% increase, and 26% increase in consumption over the three-year period, with double-digit growth across all power brands compared to three years ago.In terms of market share, Kettle Brands, Cape Cod and Snack Factory. Pretzel Crisp and Pepperidge Farm Cookies increased share, while our power brands maintained dollar share year-over-year.”

Corporate fourth quarter net income attributable to Campbell Soup Co. totaled $96 million, or 32 cents per share, down 67% from $288 million, or 0.95 cents per share, in the year-ago quarter. did. As a result of stay-at-home restrictions related to the COVID-19 pandemic. Net earnings increased 12% from $86 million, or 28 cents per share, in the fourth quarter of fiscal 2022 compared to the fourth quarter of fiscal 2020 results.

Food and Beverage segment sales were flat for the fiscal year at $4.61 billion. Food and beverage sales for the fourth quarter ended July 31 increased 6 percent to $935 million from $878 million in the same period last year.

“Supply chain progress has been impressive. There are still some businesses where material availability is delaying a full restoration of supply,” said Couse. “It’s mostly Lance, Late July, and V8, each with their own kind of material acquisition challenges, taking 23 years to fully recover.”

Kroes added that he was pleased that most of the major brands’ share remained above 2019 levels as Campbell’s Soup emerged from the impact of the COVID-19 pandemic over the past three years.

“While we experienced some share pressure as we expected in the fourth quarter, this sustained share growth compared to pre-pandemic levels will strengthen the brand portfolio as we look to 2023. It’s a positive sign that we’re surfacing,” he said.