Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Campbell Soup serves up disappointing quarterly sales performance

Friday, February 17, 2017 8:19
% of readers think this story is Fact. Add your two cents.

Campbell Soup Company (NYSE:CPB) dished up a worse-than-expected fall in second quarter sales, reflecting a poor performance in its fresh food business.

Revenue dropped 1.4% to $2.17bn in three months to 31 January, compared to $.2.20bn the same period a year earlier. Analysts had expected revenue of $2.22bn, according to a poll of analysts by Thomson Reuters.

“I am not satisfied with our sales performance this quarter,” chief executive Denise Morrison confessed.

“Declines were most prominent in Campbell Fresh driven by a market share decline and weather-related issues in carrots, capacity constraints from the Bolthouse Farms Protein PLUS recall last June, and Garden Fresh Gourmet.”

The fresh foods business, which accounts for about 12% of total revenue in the second quarter, reported an 8% sales decline.

During the period, the company took a non-cash charge of $147mln to reduce the value of assets in its Bolthouse Farms’ carrot business and a non-cash charge of $65mln in its fresh foods unit.

Earnings per share (EPS) slid to 33c from 85c and overall net earnings dropped to $101mln from $265mln, including the impairment charges.

Excluding the charges, EPS rose to 91c from 87c, beating analysts’ estimates of 88c.  

The dividend was cut to 35c from 31c.

“Looking ahead, we expect to improve our sales performance in the back half and are maintaining our guidance for the fiscal year,” Morrison said.

The group also expects to reach its targeted cost savings a year ahead of schedule. It lifted its savings goal from $300mln by the end of fiscal 2018 to $450mln by the end of fiscal 2020.  

Shares fell 5.23% to $59.28 in early US trading.  

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.