CAMDEN, NJ. — The acquisition of Snyder’s-Lance, Inc. five years ago continued to pay off for the Campbell Soup Co. in the third quarter ended April 30.
“I mean, there’s no question the Snacks business is really just on fire,” said Mark A. Clouse, president and chief executive officer of Campbell Soup, in a June 7 earnings call. “I mean, it’s hitting on all cylinders.”
In the Snacks segment net sales were $1.12 billion, up 12% from the previous year’s third quarter. Organic sales also increased 12%. Goldfish crackers and Lance sandwich crackers primarily drove increases in cookies and crackers. Salty snack growth came through acquired Snyder’s-Lance brands: Kettle Brand potato chips, Snack Factory pretzel crisps, Cape Cod potato chips and Snyder’s of Hanover pretzels.
“Our Snacks business delivered its third consecutive quarter of double-digit net sales growth, continuing the strong momentum of this business,” Mr. Clouse said. “Our 12% net sales growth was fueled by our eight power brands, reflecting the benefit of net pricing and below historical norm elasticities, which resulted in a slight decline in volume and mix.”
Mr. Clouse said the thesis of the Snyder’s-Lance acquisition completed in 2018 was taking Pepperidge Farm’s marketing and innovation expertise to drive results in the acquired brands.
“If you look at the Snyder’s-Lance brands from kind of four years ago pre-COVID to now, Kettle and Cape are up four share points,” Mr. Clouse said, adding Snack Factory pretzel crisps are up five points.
Now that supply has recovered for Late July Snacks, Campbell Soup has innovation planned for that brand, Mr. Clouse said.
Companywide for Camden-based Campbell Soup Co., net earnings of $160 million, or 54¢ per share on the common stock, were down 15% from $188 million, or 62¢ per share, in the previous year’s third quarter. Net sales of $2.23 billion were up 5% from $2.13 billion due to net price realization.Through the first nine months of the fiscal year, companywide net earnings of $299 million, or $2.29 per share on the common stock, were down 1% from $302 million, or $2.18 per share, in the same time of the previous year. Nine-month net sales of $7.29 billion were up 11% from $6.58 billion.