### Campbell’s Sees Surge in Q3 Sales and Profit Amid Home Cooking Trend

Campbell’s Co, the iconic producer of Prego pasta sauce, has exceeded third-quarter sales and profit expectations, thanks to increased demand for canned foods and soups. As consumers grow wary of spending during an uncertain economy, more people are opting to dine at home.

Concerns about a potential recession and rising costs due to significant tariffs have driven individuals to seek more budget-friendly food options, avoiding the higher expenses associated with dining out. "Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets," remarked Campbell’s CEO Mick Beekhuizen.

Despite the challenges, Campbell’s has maintained its fiscal 2025 net sales growth forecast at 6% to 8%, discounting the impact of tariffs. However, the company has adjusted its annual profit per share expectation to the lower range of $2.95 to $3.05, attributing the revision to weak demand in its snack division. Notably, the ongoing tariffs are anticipated to reduce earnings by 3 to 5 cents per share.

To counter the effects of tariffs, Campbell’s is exploring possible pricing adjustments and collaborating with suppliers to secure better sourcing and reduce product costs.

During the quarter that concluded on April 27, Campbell's net sales grew by 4% to $2.48 billion, surpassing analysts' average estimate of $2.43 billion according to data compiled by LSEG. The meals and beverages unit saw a 7% increase in volume, although the snacks business experienced a 5% decline.

Analyst Max Gumport from BNP Paribas noted that Campbell's main growth areas, specifically its snacks and Rao's brand, are underperforming amidst rising cost inflation and challenging pricing. However, the company’s adjusted per-share profit of 73 cents exceeded the estimated 66 cents.

Despite the struggle, Campbell’s stock, which has dropped around 18% this year, saw a modest rise of approximately 1% in early trading.