Campbell Soup Company today (23 November) posted an increase in first-quarter profits, which were boosted by lower costs and marketing expenses.
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Profits rose to US$304m in the first three months to 1 November, up from $260m last year.
However, sales fell 2% to $2.2m, with volumes down 4% during the period. The group partially attributed the decline to “tough comparables” with last year, when Campbell posted a 12% jump in sales.
The company said that its US soup business benefited from eat-at-home trends, as US consumers looked to reduce spending. Its baking and snacks division, which includes Pepperidge Farm, was the only unit that saw revenues rise 4%.
Douglas Conant, president and CEO, said Campbell had delivered solid earnings growth, despite top line pressure, as cost cuts saw margins improve.
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By GlobalData“We’re especially pleased with the significant improvement in our gross margin, driven by increased productivity in our supply chain,” he said in a statement.
Gross margin rose to 41.9% from 40.2% as the company cut costs, boosted productivity and raised prices.
Looking to the full year, Campbell said it expects fiscal 2010 sales growth of 4-5%. It had previously issued sales guidance of 3-4%. EBIT is expected to grow by 6-7%, up from a previous 5-6% guidance range.
For the full press release click here, or check back later for just-food’s insight.
