(Reuters) -Campbell Soup Co fell short of market expectations for quarterly revenue on Wednesday, in a sign that demand for its sauces and broths is slowing from the pandemic-led surge.
With the COVID-19 pandemic shutting restaurants across the world, packaged food makers benefited from customers stockpiling at home on frozen meals, snacks, sauces and soups.
However, consumers are now returning to restaurants and former food-ordering habits, which has hit demand for Campbell’s products in recent months.
The company’s organic sales were down 2% in the quarter, as it also wrestled with industry-wide supply chain shortfalls and labor shortages.
“Our second quarter was challenging as we lapped a difficult comparison and navigated labor and supply constraints, made even tougher by the Omicron surge,” Campbell Chief Executive Mark Clouse said.
Net sales fell to $2.21 billion in the second quarter ended Jan. 30, from $2.28 billion a year earlier. Analysts on average had expected $2.24 billion, according to Refinitiv IBES.
Net earnings attributable to the company fell to $212 million, or 70 cents per share, from $245 million, or 80 cents per share, a year earlier.
(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)
