Campbell Soup Co. has posted a small rise in half-year profits despite higher costs hitting earnings during the second quarter of its financial year.
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The US firm, the world’s largest soup maker, saw underlying earnings inch up to US$528m from $524m during the six months to 27 January. Turnover was up 7% to $4.4bn.
Campbell said the results excluded the contribution from upmarket chocolate business Godiva, which the company is set to sell to Turkish conglomerate Yildiz Holding.
The company saw underlying earnings during the second quarter rise from $257m a year earlier to $260m. Net income, however, fell almost 4% to $274m during the second quarter.
President and CEO Doug Conant said higher commodity costs had weighed on the company’s margins. “We are taking the necessary steps to restore margin through a combination of price increases and ongoing productivity improvements,” he said.
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By GlobalDataConant added that Campbell’s US soup business had “rebounded” after a slow start to the year, thanks to growth from its ready-to-serve soups and broths.
The company’s snack sales were up 8% during the first half of the year.
Internationally, Campbell’s soup, sauces and beverages business saw revenue climb 13% as sales in Belgium and France offset a decline in Germany.
