By Tess Stynes
Campbell Soup Co.'s (CPB) fiscal fourth-quarter earnings rose
27% as fewer restructuring charges helped lower expenses and
improved sales in its U.S. soup business supported modest revenue
growth.
The company is in the midst of a turnaround that aims to
stabilize its soups and simple meals business, expand
internationally and continue to increase sales in the healthy
beverages and baked snacks businesses. Campbell recently completed
its $1.55 billion acquisition of natural-foods company Bolthouse
Farms, expanding Campbell's presence in the growing packaged
fresh-foods category.
In the latest quarter, soups sales grew 9%, mostly attributed to
the condensed soup business, where sales were up 14%.
U.S. beverage sales were up 3% amid improved volume and a boost
from growth in V8 Splash and V8-Fusion beverages.
President and Chief Executive Denise Morrison said, "We
generated organic sales growth, with gains across most of our
portfolio, including strong sales in U.S. soup and U.S. simple
meals. Retailers continue to respond favorably to our new product
development, and we have started shipping new products for fiscal
2013 launches."
For the quarter ended July 29, Campbell reported a profit of
$127 million, or 40 cents a share, up from $100 million, or 31
cents a share, a year earlier. Excluding acquisition charges,
restructuring charges and other items, earnings were down at 41
cents from 43 cents.
Overhead costs declined nearly 2% amid fewer restructuring
charges.
Revenue increased by $6 million to $1.61 billion. Excluding
currency fluctuations, revenue was up 3%.
Analysts polled by Thomson Reuters most recently projected
earnings of 38 cents on revenue of $1.6 billion.
Gross margin fell to 38.5% from 39.8% amid higher commodities
costs and promotional spending.
Volume improved 3% while pricing and sales allowances boosted
sales by 3%. This was partly offset by the increased promotional
spending, which cut 3% from sales.
For the just-started fiscal year, the food company projected
per-share earnings of $2.51 to $2.57, including five cents to seven
cents from its recent Bolthouse Farms acquisition, on sales growth
of 10% to 12%. Analysts polled by Thomson Reuters recently expected
earnings of $2.52 and revenue growth of 10% to $8.49 billion.
Shares closed Friday at $35.14 and were inactive premarket.
Markets were closed Monday for the Labor Day holiday. The stock is
up 12% in the past year.
Write to Tess Stynes at tess.stynes@dowjones.com
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