Shares of Campbell Soup (CPB) - Get Report grew cold Monday after initially warming up after the canned food giant's disclosure that it had seen a substantial sales bump in the wake of the coronavirus-driven economic downturn.
Campbell Soup's stock price edged up 0.52% to $50.60 a share after the consumer food products company noted in a report to the Securities and Exchange Commission "significantly higher sales" as a result of the spread of Covid-19 in North America.
But the warming proved short-lived, with shares of the soup giant later growing cold and dropping 0.37% to $50.15 a share as markets across the board fell on news of another big drop in oil prices.
The company said both its meals and beverages and snack segments were benefiting from the bump-up in sales amid the coronavirus crisis, with the increased sales coming at both grocery stores and retail chains.
The increases have "more than offset" a decline in Campbell's food service unit, which works with restaurants, the company said.
Still, the company also added a cautionary note.
"The recent higher sales trends of our retail products may lessen or reverse in the coming months if customers or consumers alter their purchasing habits," the company noted in a press statement.
Further, Campbell Soup also warned there could be disruptions to its business in the weeks and months ahead as federal, state and local governments in the United States and their counterparts across the world impose restrictions aimed at combatting the spread of the coronavirus.
The company warned that as a result of "Illness, government restrictions, or other workplace disruptions," it could find itself grappling with the shutdown of one or more of its manufacturing, warehouse or distribution centers.
Campbell Soup also disclosed that on March 30, it borrowed an additional $300 million from its revolving credit line.