Campbell Soup (NYSE: CPB) reported a decline in its latest quarterly revenue, with ongoing weakness in its snack business being a significant factor.

The soup and snack giant announced that its third-quarter sales decreased by 4% year-over-year to $2.37 billion.

Key Financial Highlights

For the third quarter, Campbell Soup posted net earnings of $124 million, or 41 cents per share, a rise compared to $66 million, or 22 cents per share, in the same period last year. This profit growth occurred despite the 4% drop in sales to $2.37 billion.

Adjusted earnings per share came in at 50 cents, surpassing the FactSet consensus analyst estimate of 48 cents.

Total quarterly sales of $2.37 billion fell short of the $2.38 billion analysts had anticipated.

Segment Performance Breakdown

Net sales in the Snacks division declined by 4%, with weakness across savory snacks, crackers, and fresh bakery items. The Meals & Beverages segment also saw a 4% decrease in net sales, driven by lower U.S. soup sales.

Management Commentary

CEO Mick Beekhuizen stated that the quarter's results aligned with the company's expectations, but the business continues to face pressure from soft consumer demand and ongoing inflation squeezing profit margins.

Beekhuizen added that initiatives to expand the savory snack portfolio are showing early signs of success. Core Meals & Beverages brands, including Campbell's, Rao's, and Swanson, continue to benefit from the trend of more at-home cooking.

"The enterprise remains focused on streamlining our business, enhancing productivity, and reducing costs to generate funds for reinvestment in our highest-growth opportunities," Beekhuizen said.

Full-Year Outlook

For the full fiscal year, Campbell Soup reaffirmed its previous guidance. It expects organic net sales to decline in a range of 1% to 2% and forecasts adjusted earnings per share between $2.15 and $2.25. The FactSet consensus estimate for full-year adjusted EPS is $2.17.

The Camden, New Jersey-based company had initially lowered its full-year outlook in March, citing persistent soft snack demand as a drag on overall revenue. At that time, the company indicated it was taking actions to improve competitiveness, including increased promotions, potential price reductions, and new product launches.