The maker of namesake soup brands and snacks like Goldfish crackers, Milano cookies and Snyder’s pretzels reported Wednesday that profit fell 5% to $160 million during the three months ending May 2, compared with the same stretch last year.
“Our results were impacted by a rising inflationary environment, short-term increases in supply chain costs, and some executional pressures,” CEO Mark Clouse said in a news release.
Campbell expects “more pronounced inflation” during its upcoming quarter and lowered its financial guidance for its fiscal year as a result.
Many manufacturers are hiking prices as a result.
Campbell plans to combat higher costs by increasing the prices it charges retailers and other customers it sells to by an average of mid-single percentage points later this year, Clouse said on a call with analysts.
Retailers can absorb those higher prices, pass them off to consumers, or respond with a combination of both tactics.
