Campbell Soup has posted a 12% increase in net sales to $2.4 billion (€2.1 billion) in the third quarter of its financial year.
Adjusted EBIT increased 5% to $323 million (€287.6 million) reflecting incremental earnings from the acquisition of Snyder’s-Lance in 2018, partly offset by declines on the base business.
Net sales from the company's continuing operations increased 16% to $2.2 billion (€1.96 billion) during the quarter.
Sales decreased in its discontinued operations by 15% to $210 million (€187 million).
The company reported the Campbell Fresh Segment under 'discontinued operations'.
In August of last year, Campbell Soup has announced plans to sell its international and fresh refrigerated-foods units.
Divisional Performance
The company's meals and beverages unit witnessed a 1% drop in sales during the quarter to $1.02 billion (€910 million).
The adoption of new accounting guidance for revenue recognition resulted in a positive 1-point impact on sales.
Operating earnings decreased by 5% to $207 million (€184.3 million) during the quarter, driven by cost inflation and higher administrative expenses.
It was partly offset by supply chain productivity programmes, lower promotional spending and the benefits from recent pricing decisions.
Sales in the global biscuit and snacks division increased 37% to $1.15 billion (€1.02 billion), with organic sales growing by 1%.
It was driven by continued solid growth in Pepperidge Farm and Goldfish Crackers.
Operating earnings increased by 15% during the period to $139 million (€123.8 million).
'Ahead Of Expectations'
Commenting on the results, Campbell's president and CEO, Mark Clouse, said, "Our results this quarter were ahead of our expectations, making it the third consecutive quarter that we met or exceeded our outlook."
"I am also pleased to see profitability trends are improving, driven by sequential gross margin improvement," he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
