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2021-09-02

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Campbell Soup bets on price increases to drive up margins in H2

Sept 1 (Reuters) - Campbell Soup Co said a rise in its product prices would drive its earnings margi

Campbell Soup bets on price increases to drive up margins in H2

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Campbell now looks to keep up sales level by modernizing packaging and launching new items.</p>\n<p>\"Part of the composition of the year is going to be a little bit of a tale of two halves,\" Chief Executive Mark Clouse told analysts, noting an expected improvement in sales in the second half from price increases of Campbell's products.</p>\n<p>\"With COVID resurgence, I think some of the consumer dynamics that supported demand is likely going to be with us for a while longer.\"</p>\n<p>However, Campbell expects fiscal 2022 organic net sales in a range of 1% decline to a rise of 1%. The maker of Prego pasta sauces also forecast adjusted earnings between $2.75 and $2.85 per share, below Refinitiv IBES estimates of $2.87.</p>\n<p>Net sales fell 11% to $1.87 billion in the fourth quarter ended Aug. 1, beating estimates of $1.81 billion. Adjusted per-share earnings of 55 cents also topped expectations. 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Campbell Soup bets on price increases to drive up margins in H2

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