(Reuters) – Campbell’s Co fell short of market expectations for quarterly net sales on Tuesday and named insider Mick Beekhuizen as its new chief executive officer, as the company sharpens focus on a more diverse range of packaged food products amid choppy consumer demand.
Campbell’s shares were down about 4% in extended trading after the company also reaffirmed its annual sales and profit targets, with total net sales falling shy of market expectations.
Legacy packaged food companies such as Campbell’s have faced stiff competition in recent years from more affordable private label brands as consumers seek to maximize their household budgets.
The company reaffirmed its annual target of 9% to 11% net sales growth and 1% to 4% adjusted profit per share growth, and said the ranges reflected balance between “expected sequential progress and pragmatism” as it navigates uneven consumer demand for packaged goods.
Beekhuizen will succeed Mark Clouse as president and CEO of the company, effective Feb. 1, 2025.
The current holiday quarter would be an “important indicator of progress,” said Clouse in a statement. In January, he will be retiring from Campbell’s after a six-year stint as CEO to become President of the NFL’s Washington Commanders.
Former financial chief at yogurt maker Chobani, Beekhuizen joined Campbell in 2019 as its CFO, before taking over as president of the meals and beverages division in 2022, where he oversaw the $2.7 billion acquisition of Rao’s sauces maker Sovos Brands.
The company, which announced its first-quarter results a day earlier than scheduled, said during its investor day in September that it would focus on 16 top brands across its meals & beverages and snacking divisions, including Goldfish, V8 beverages and Prego sauces.
Campbell’s first-quarter net sales rose to $2.77 billion from $2.52 billion a year earlier. Analysts, on average, were expecting $2.80 billion, according to data compiled by LSEG.
Still, first-quarter adjusted earnings per share of 89 cents topped estimates of 87 cents as its cost-savings efforts and supply chain improvements helped offset the impact from moderating pricing benefits and higher input costs.
(Reporting by Juveria Tabassum; Editing by Alan Barona)
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