Campbell Soup Quarterly Profit Beats Estimates
On Tuesday, Campbell Soup Co. reported a smaller-than-expected decline in quarterly earnings.
Net earnings attributable to the company fell to $194 million (€170 million), or 64 cents per share, in the first quarter (28 October), from $275 million (€241 million), or 91 cents per share, a year earlier.
Excluding items, Campbell earned 79 cents a share, beating analysts' average estimate of 70 cents, according to Refinitiv data.
Campbell, owner of the Prego pasta sauce and Goldfish cracker brands, also said that it had begun the process of divesting its international and fresh-food businesses.
The company said that the units, which were put up for sale in August, have both attracted strong interest from potential buyers.
Net sales jumped about 25%, to $2.69 billion (€2.4 billion), boosted by its recent acquisitions of Snyder's-Lance and Pacific Foods. Organic sales fell by 3%.
The 149-year-old company, which revolutionised the home-cooking industry with easy-to-prepare soups and low-cost production techniques, has been struggling to attract young consumers to its namesake soups and Pepperidge Farm cookies.
Camden, New Jersey-based Campbell did not provide an update on its CEO search or ongoing proxy fight with hedge fund Third Point.