Friday 29 Mar 2024
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BENGALURU (Feb 17): Campbell Soup Co, the world's largest soupmaker, reported lower-than-expected quarterly sales on Friday, hurt by weak demand for its V8 beverages, broth and condensed soups.

The company said revenue fell 1% in the Americas simple meals and beverages unit, Campbell's largest segment, which includes its namesake soup brand and Prego pasta sauces.

Sales from Campbell's fresh foods business, which accounted for about 12% of total revenue in the second quarter, fell 8%, as the company's effort to recover from a recall of certain protein drinks and a disappointing carrot harvest last year is taking longer-than-anticipated.

However, the company's sales of soup in the United States rose 1% in the quarter ended Jan 29, helped by strong demand for its ready-to-serve soup brands, such as Chunky and the new Well Yes!, but was offset by declines in broth and condensed soups.

The company, which also sells Pepperidge Farm snacks, reported a 1.4% fall in net sales to US$2.17 billion. Analysts on average had expected US$2.22 billion, according to Thomson Reuters I/B/E/S.

Net income attributable to Campbell fell to US$101 million or 33 cents per share in the quarter, from US$265 million or 85 cents per share a year earlier.

The company took a non-cash charge of US$147 million to reduce the value of assets in its Bolthouse Farms' carrot business and a non-cash charge of US$65 million in its fresh foods unit.

Excluding certain items, the company earned 91 cents per share, beating analysts' average estimate of 88 cents per share.

Campbell's shares were down 2.5% at US$61.00 in premarket trading on Friday.

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