The Campbell Soup Company has seen both its net sales and organic sales decline 1% in its third quarter results.
The company posted $1.853 billion worth of sales in the period, down from $1.87 billion for the same period the previous year.
The company said that while sales volumes were 'comparable to the prior year', the decrease in value sales was due to 'higher promotional spending', while it also saw declines in its 'Americas Simple Meals and Beverages' and 'Campbell Fresh' divisions.
It also decreased its marketing spend by 8% to $209 million, partly in order to fuel its promotional campaigns. Administrative expenses decreased 9%.
Adjusted EBIT for the period was $305 million, a 2% decline on the previous year ($312 million).
Gaining Share
“While organic sales declined 1 percent in the quarter, the team performed well in a difficult environment, gaining market share in many of our categories and continuing to execute our cost savings program.
“This was a challenging quarter across the food industry as top-line growth remained scarce, especially in center store categories." commented chief executive Denise Morrison. "The industry, including Campbell, experienced significant consumption declines early in the calendar year.
"These industry trends coincided with weak consumer spending, which was at its lowest growth rate since 2009. While we rebounded with sales growth in March and April, we were unable to offset the earlier declines."
Morrison added that in this context, Campbell delivered a 'competitive' performance. "A bright spot in the quarter was our Global Biscuits and Snacks division, which delivered top-line and double-digit bottom-line growth. Looking ahead as we finish the fiscal year, we expect Global Biscuits and Snacks to maintain its positive momentum, and we will also be cycling the C-Fresh protein drink recall from last year."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
