Half-year profits at US food group Campbell Soup Co. jumped over 14%, the company said today (22 February), helped by “strong cost management” and productivity gains.
The business booked a 14.2% rise in net income to US$563m for the six months to the end of January.
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Gross margin improved from 40% to 41.2% as Campbell benefited from better productivity.
Sales were flat at $4.36bn, with “volume and mix” falling 3%.
First-half soup sales in the US fell 5% as sales of ready-to-serve soups slid 13% amid weak consumer spending.
Half-year sales from Campbell’s international soup, snacks and beverage business rose 5% thanks, in part, to a 7% gain from foreign exchange.
Last week, Campbell cut its forecast for full-year sales. President and CEO Doug Conant said today that the company’s annual profits would be helped by cost control.
“Looking ahead, we remain on track to deliver good bottom-line growth for the year supported by continued cost management and productivity gains,” Conant said.
Click here for more detail on Campbell’s half-year numbers and click here for president and CEO Doug Conant’s optimism on ready-to-serve soups.
