Campbell Soup Co. president and CEO Doug Conant said today (24 November) that the US food group was “off to a good start” after posting a 4% rise in first-quarter profits.
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The company booked adjusted net earnings of US$281m for the three months to 2 November, up 4.1% on the year. Sales rose 3% to $2.25bn.
On a reported basis, net earnings were down 3.7% to $260m as restructuring costs and losses from Campbell’s commodity hedging schemes hit earnings.
Total operating earnings reached $446m, down from $456m a year earlier.
Nonetheless, Conant was encouraged by the performance from a clutch of Campbell’s new products. “Our product innovations and marketing efforts have resulted in strong top-line performance across our US soup portfolio,” Conant said. “This was especially evident in our condensed soup and broth businesses, both of which had double-digit gains in the quarter.”
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By GlobalDataUS soup sales rose 12%, which helped drive a 9% rise in revenue from Campbell’s domestic soup, sauces and beverages business to $1.2bn.
The strength of the US dollar, however, hit Campbell’s international soup, sauces and beverages sales, which dipped 3% to $380m.
Currency fluctuations, as well as a slew of disposals, also affected sales from Campbell’s baking and snacking unit, which saw revenue fall 4% to $509m.
Conant added: “Campbell’s product portfolio is well positioned in both good and tough economic times. As consumers continue to seek value, they can choose a variety of Campbell’s products to help them provide wholesome, affordable food.”
