Campbell’s Co (NASDAQ:CPB) stock fell 1.08% (As on June 3, 11:20:28 AM UTC-4, Source: Google Finance) after the company beat third-quarter sales and profit estimates, helped by strong demand for canned food and soups as consumers increasingly prefer to eat at home amid an uncertain economy. Fears of a potential recession and price hikes triggered by the imposition of hefty tariffs have prompted consumers to opt for more affordable products and avoid costly dine-outs. Volumes for the meals and beverages unit rose 7% during the quarter, while the snacks business reported a 5% fall. Organic net sales increased 1% to $2.3 billion primarily driven by 2% favorable volume/mix, partially offset by planned unfavorable net price realization. Adjusted gross profit increased to $745 million from $740 million. Adjusted gross profit margin decreased 110 basis points to 30.1% mainly driven by cost inflation and other supply chain costs, unfavorable net price realization and the impact of the acquisition, partially offset by supply chain productivity improvements, the benefits from cost savings initiatives and volume/mix favorability. Adjusted EBIT increased 2% to $362 million primarily due to the contribution of the acquisition, partially offset by lower adjusted EBIT in the base business.

CPB in the third quarter of FY25 has reported the adjusted earnings per share of 73 cents, beating the analysts’ estimates for the adjusted earnings per share of 66 cents. The company had reported the adjusted revenue growth of 4 percent to $2.48 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $2.43 billion, according to data compiled by LSEG.

Additionally, capital expenditures year-to-date were $296 million compared to $376 million. Cash flow from operations for the nine months ending April 27, 2025 was $872 million compared to $897 million in the prior year primarily due to changes in working capital. As of the end of the third quarter, Campbell’s has delivered approximately $110 million of savings under the $250 million cost savings program announced in September 2024.

The company maintained its fiscal 2025 net sales growth forecast of 6% to 8%, excluding the impact of tariffs. It projected annual adjusted profit per share to be at the lower end of its prior range of $2.95 to $3.05, owing to weak snacks demand. Accounting for levies currently in place, however, Campbell’s expects a hit of between 3 cents and 5 cents per share. The company said it was pursuing possible pricing actions while working with suppliers to seek better sourcing and lower product costs to minimize the tariff impact.