Campbell Soup: Sales, profits slip for year

CAMDEN Campbell Soup Co. on Thursday reported lower sales for its fourth quarter and full year, as the food firm's top executive cited a "difficult operating environment."

The Camden company said profits slipped for the year, but rose in the last quarter. Among other factors, it noted the impact of charges from an organizational restructuring and said the previous year and fourth quarter included an extra week of sales activity.

Campbell President and CEO Denise Morrison said the firm’s performance had matched its projections. She noted the positive influence of productivity improvements, higher selling prices and lower promotional spending.

But, Morrison said, "We recognize that we have more work to do to drive sustainable, profitable growth."

For the fourth quarter ended Aug. 2, Campbell said sales fell by 9 percent to $1.69 billion. The company said revenues were reduced in part by currency translation.

The firm said organic sales rose 1 percent for the last quarter, matching their increase for the full year.

Citing results from continuing operations, Campbell reported adjusted earnings before interest and taxes of $234 million for the quarter, a 5 percent improvement from a year earlier. Adjusted earnings per share also rose 5 percent from the year-before level, to 43 cents.

Campbell said fourth-quarter results reflect a pre-tax restructuring charge of $93 million from its "cost savings initiatives." The firm has announced a three-year plan to cut operating costs by $250 million.

For the year, Campbell had declines of 2 percent for both sales, at $8.08 billion, and adjusted earnings before interest and taxes, at $1.22 billion.

Campbell said it expects sales to grow by 0 to 1 percent in fiscal 2016, helped in part by its recent acquisition of Garden Fresh Gourmet, a Michigan-based firm that makes refrigerated salsa, hummus and other food products. It projects gains of 3 percent to 5 percent for adjusted earnings before interest and taxes and earnings per share.

Jim Walsh; (856) 486-2646; jwalsh@gannettnj.com