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The
world's No. 1 soup maker said in July it was targeting cost
savings of $250 million annually by the end of fiscal 2018.
Like others in the packaged food industry, Campbell has been
struggling to increase revenue as consumers opt for food items
that are perceived to be healthier.
The results were the first since Campbell reorganized its
business into three segments, down from five previously.
The traditional soup business is included in a new division
called Americas Simple Meals and Beverages. That business
reported a 2 percent drop in sales to $1.30 billion in the first
quarter ended Nov. 1 from a year earlier.
The other two businesses are Global Biscuits and Snacks, which
includes Pepperidge Farm and Arnott's cookies, and Campbell
Fresh, which combines recently acquired salsa maker Garden Fresh
Gourmet with the Bolthouse Farms juice business.
Sales in the biscuits and snacks business fell 6 percent to $652
million in the quarter, while Campbell Fresh sales rose 8
percent to $249 million.
Total net sales fell 2.3 percent to $2.20 billion, slightly
below the average analyst estimate of $2.21 billion, according
to Thomson Reuters I/B/E/S.
Net income attributable to the company fell to $194 million, or
62 cents per share from $248 million, or 78 cents per share, a
year earlier.
Excluding items, Campbell earned 95 cents per share, handily
beating the average analyst estimate of 76 cents.
The company forecast a full-year 2016 adjusted profit of
$2.75-$2.83 per share.
Analysts on average had been expecting $2.59.
Up to Monday's close of $49.79, Campbell's stock had risen about
13 percent this year.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Ted Kerr)
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