Campbell reports higher Q1 sales, earnings

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Campbell Soup Company on Tuesday said fiscal first-quarter earnings jumped from the year before, thanks in part to stronger sales.The Camden-based food company said in a news release that adjusted earnings rose 9 percent, to $368 million, from $337 million in the fiscal first quarter of 2014. Diluted earnings rose 12 percent, to 74 cents per share, from 66 cents per share in the year-ago period.

Net sales rose 4 percent, the company said, to $2.26 billion, from $2.17 billion in the 2014 quarter.

“We were encouraged by our organic sales growth across most of our portfolio, particularly in U.S. Simple Meals and Global Baking and Snacking,” Denise Morrison, Campbell’s CEO and president, said in a prepared statement. “Our U.S. soup performance was driven by a stronger seasonal sell-in and the timing of our quarter end relative to the Thanksgiving holiday. …

“Although our year is off to a solid start, we are facing some challenges. Our gross margin performance did not meet our expectations due largely to higher than anticipated commodity costs and supply chain costs. We have plans to offset gross margin pressure in the remainder of the year. We also are facing headwinds from currency. Despite these challenges, we continue to make progress strengthening our core business and expanding into faster-growing spaces.”

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