Investing.com -- Campbell Soup (NYSE:CPB) posted better-than-expected income in the third quarter, thanks in part to an uptick in prices, but volumes slipped in a sign that inflation-hit American shoppers were seeking out more affordable options.
The canned soup and cookies maker has been raising the prices of its items in a bid to counter a jump in input costs linked to supply chain constraints and the ongoing conflict in Ukraine. The increase has also been seen in peers like Kraft Heinz (NASDAQ:KHC) and Kellogg (NYSE:K).
Prices moved up by 12% during the three months ended on April 30, although this was partly offset by a 7% drop in volume and mix.
Shares in Campbell Soup fell in premarket trading on Wednesday.
Quarterly net sales grew by 5% compared to the same period last year to $2.2 billion, meeting expectations. The result helped drive adjusted earnings per share to $0.68, topping Bloomberg consensus estimates of $0.65 a share.
However, high freight and marketing expenses led to a slight decrease in gross profit margin to 30%.
The group also reiterated its full-year fiscal 2023 guidance for adjusted profit of $2.95 to $3.00 on a net sales gain of 8.5% to 10%.