Campbell Soup Co. has reported a fall in underlying half-year profits – but an increase in second-quarter earnings and the maintenance of the group’s forecasts boosted its shares.
Excluding items like costs from restructuring, Campbell booked adjusted earnings from continuing operations of US$449m for the six months to the end of January, down 4% on a year earlier.
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However, for the second quarter, adjusted earnings from continuing operations increased 19% to $240m.
President and CEO Denise Morrison said Campbell’s quarterly result had been helped by sales from its core business – which the company calls “simple meals” – and acquisitions like Denmark-based snacks group Kelsen.
“We remain focused on strengthening our core business and expanding into higher-growth spaces as we reshape our portfolio to improve Campbell’s long-term growth trajectory. We made progress on both fronts in the second quarter after a slow start to the year,” Morrison said.
Campbell’s net sales its second quarter were up 6% at at $2.28bn. Soup sales in the US increased 5% in part due to the later Thanksgiving season.
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By GlobalDataMorrison said Campbell was “encouraged” by its second-quarter results but added: “Our team recognises that our full-year guidance demands that we continue to deliver improved performance in the second half.”
Campbell expects its continuing operations to grow sales by 4-5%, adjusted EBIT to rise 4-6% and adjusted EPS to be up 2-4%.
Shares in Campbell closed up 4.98% on Friday (14 February) at $43.01.
