Campbell profit beats as soup sales heat up, shares rise
Campbell Soup Co (CPB.N) on Friday reported better-than-expected fourth-quarter profit and margins as the food company sold more soups and snacks, tightened up its supply chain and cut costs, sending shares up more than 8%.
To better focus on its mainstream soup and snack businesses, Campbell has been streamlining its operations by disposing its international and fresh businesses, including Bolthouse Farms and Garden Fresh Gourmet salsa. The company has introduced new soup recipes with added chicken and tomatoes and eliminated preservatives to also draw in health-conscious customers.
“It was great to see growth in soup. It’s the first time in quite a number of years that we’ve been able to drive growth on the business,” Chief Executive Officer Mark Clouse told analysts on a call to discuss earnings.
Camden, New Jersey-based Campbell, which also makes Prego pasta sauces, Kettle potato chips and Perpperidge Farm cookies, reported its best gross margin in six quarters. Shares rose 8.2% to $46.87 in morning trading.
30th August 2019