Campbell Soup Co.'s third-quarter results included some positive news. Sales from the US group's baking and snacking arm grew solidly, while the company's profitability beat analyst expectations amid productivity savings and a pull back on promotional spending. However, Campbell's top line – with US simple meals and soup the largest contributor – remains under pressure and the group may have to look at other avenues to drive growth or reassess its long-term targets.

There is no doubt that, in recent years, Campbell has tried to refashion its portfolio to focus less on stagnant centre-of-the-store categories like soup and more to faster-growing parts of the sector. Since president and CEO Denise Morrison took the helm in July 2011, US chilled foods firm Bolthouse Farms, US baby food business Plum Organics and Denmark-based baked snacks company Kelsen Group have all been acquired. In 2013, Campbell offloaded a range of soups, sauces and simple meals assets in Europe.

Morrison has also reorganised the new-look Campbell to, as she put it, "unlock the value of our brands and the growth potential of our business". In January, the establishment of three divisions based on categories was announced: Americas simple meals and beverages; global biscuits and snacks; plus packaged fresh. (The company has still to finalise its reorganisation and is, at present, still publishing its results against its previous divisions – US simple meals; global baking and snacking; international simple meals and beverages; US beverages; and Bolthouse and foodservice).

Campbell has also looked at its cost base, announcing in February it had identified ways of reducing its overheads by US$200m beyond its ongoing productivity measures. The company has also looked again at its sales and marketing strategy. In its third quarter, which ran until 3 May, Campbell reduced its spending on promotions after seeing how some of its initiatives a year ago had not paid off.

The company's decision to cut its trade spending and merchandising was a key factor in the 10% fall in its soup sales in the US during the quarter. "We expected consumption and shipments to be down, with retailer inventories relatively stable. In fact, consumption was actually better than we expected, but retailer inventory declines exceeded our expectations and are now below prior-year levels. Consequently, sales were below expectations," Morrison told investors on Friday.

That said, although Campbell said its reduced trade spending hit retail inventories, could the cutbacks be a reflection of grocers reacting to the sluggishness of centre-of-the-store categories like soup?

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The combination of productivity savings and the lower spending on promotions, plus easing cost inflation and higher pricing, meant Campbell did enjoy a jump in gross margins, which in turn helped push operating profit – though lower year-on-year – above analyst forecasts. The profit numbers led to Campbell narrowing its forecasts for full-year earnings. Operating profit and earnings per share are still expected to fall – but the company now expects the declines will be at the lower end of their forecasts.

The way Morrison reflected on Campbell's quarter and work on margins was notable. "I am pleased with our results this quarter, especially the improvement in our gross margin," she said, later adding: "Clearly, our gross margin improvement was the main reason for encouragement in the quarter."

However, there remains some concern over Campbell's top line. Despite the growing sales from Campbell's baking and snacking business or from Plum and despite the company pointing to retailer inventory as the key factor in its falling soup sales, the group did caution its annual sales would come at the "lower end" of its forecast range, which was between a 1% decline and a 1% increase.

Campbell's recent acquisitions appear to be settling in well, although the Bolthouse business has faced some challenges. However, the company's biggest business in sales terms remains US simple meals, which in turn has soup has its biggest component. The division has the highest segment operating earnings. Both sales and operating earnings from the division fell in the third quarter.

Campbell's work on areas such as promotions and its broader initiatives on productivity will likely improve the profitability of a division that will form the central portion of the group's new Americas simple meals and beverages arm, which Morrison says will "manage for moderate growth and higher profit".

Snacks and fresh food is where Morrison and Campbell believe will be the source of the company's growth but the (at present) smaller scale of the businesses – compared to simple meals – could mean the group has to reassess its long-term targets or look at more wide-ranging strategic action.

"Canned soup and shelf-stable beverages are likely to face continued top-line pressure due to consumer shifts away from heavily processed foods; though the recent cost cutting announcement is a positive, recent M&A is likely too small to make a sizeable impact," Sanford Bernstein analyst Alexia Howard wrote last week.

"It is clear that the company is trying to address and stay on trend with changing consumer demands. However, Campbell Soup could have to bring down its long-term growth algorithm due to changing sales and profit dynamics."

Morrison has appeared one of the more switched-on chief executives to the changes in consumer habits that are rattling the major packaged food names. The reshaping of the company's portfolio show a recognition of the need to inject growth into a business historically focused on the centre of the store. The work on productivity and on promotions is an indication Campbell is aware it is now operating in an environment where 3G Capital's moves for Heinz and Kraft Foods Group has heightened the scrutiny on costs and the effectiveness of spending.

However, with Campbell's top line stagnant, one is left wondering whether Campbell needs to do more. Soup, still the flagship category at Campbell's, is in the doldrums. Could more investment in emerging markets or more M&A in more buoyant sectors provide an answer?