By Aatrayee Chatterjee

Aug 29 (Reuters) - Campbell Soup Co ( CPB ) forecast

annual profit below Wall Street expectations on Thursday due to

higher raw material costs and the impact from its recently sold

popcorn business.

Several packaged food companies have been grappling with

higher expenses of inputs including olive oil, cocoa, packaging,

labor and warehousing, prompting them to undertake several

rounds of price increases last year to lift margins.

Campbell's fourth-quarter adjusted gross profit margin

increased 80 basis points to 31.4%.

However, the company forecast an impact of 4 cents to annual

adjusted profit from the sale of its Pop Secret popcorn business

that was completed earlier this week.

Shares of the company, known for its Prego pasta sauces

and Pepperidge Farm cookies, were down 3% at market open. The

stock has surged about 16% so far this year.

"Given how strong the CPB stock was recently, as well as

the lower-quality fourth-quarter beat and the fact that 2025

consensus is coming down, we wouldn't be surprised by a modestly

red day," J.P. Morgan analyst Ken Goldman said in a note.

The company forecast adjusted earnings between $3.12 and

$3.22 per share in fiscal 2025, while analysts on average were

expecting annual profit of $3.23 per share, according to LSEG

data.

Organic sales at its snacks division declined 3% in the

quarter.

"Much of that (market) share pressure is not a result of

pricing or promotional activity, but rather new entrants into

our elevated segments like Kettle potato chips, or

organic/Better-for-You tortilla chips," said CFO Carrie

Anderson.

Net sales of $2.29 billion missed estimates for a 11.7%

rise to $2.31 billion. Excluding items, Campbell's earnings per

share of 63 cents was higher than expectations of 62 cents.

"Following significant pricing taken by CPB and its

peers in recent years, we think stimulating a sustainable volume

recovery will prove challenging given that consumers are

increasingly displaying signs of strained wallets," RBC analyst

Nik Modi said.

Still, the company expects net sales to rise between 9% and

11% in fiscal 2025, above estimates for a 8.92% jump, betting on

steady demand for its soups and ready-to-eat meals.

(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by

Devika Syamnath)