•  Net income down 3.4%
  •  Margins hit by restructuring charges
  •  Revenue climbs 7%
The soup maker saw sales rise almost 7%

The soup maker saw sales rise almost 7%

Campbell Soup Co. has posted a 3.4% fall in quarterly earnings, despite an increase in revenues, as restructuring costs and a higher tax bill hit profits.

The world's largest soup maker reported a drop in third-quarter net income to US$168m for the three months to 2 May, down from $174m last year.

Earnings per share remained unchanged at $0.49 as Campbell's share capital dropped by 2.6% on the year.

However, the company said that adjusted earnings – stripping out the impact of restructuring and other charges – totalled $0.54 a share.

Gross margin widened to 41.2% from 40.6% amid the company's restructuring efforts.

Revenues increased 6.9%, rising to $1.8bn from $1.69bn. Gains were driven by currency exchange – which added 5% – and a lift in volumes.

Click here for the full release from Campbell Soup Co. and click here for more insight on the country's promotional strategy in the US in the last quarter.