Rising costs and falling domestic soup sales have weighed on first-quarter profits at US food group Campbell Soup Co.
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The company said today (19 November) that underlying earnings reached US$270m during the three months to 28 October, compared to $269m a year earlier.
While profits were flat, revenue rose 7% to $2.3bn, thanks to rising volumes and a benefit from currency fluctuations.
President and CEO Doug Conant said the company was “satisfied” with its sales performance but that cost inflation had hit margins.
He added: “We plan to improve our margin performance during the year through a combination of greater price realisation and ongoing productivity improvements.”
Nevertheless, Campbell confirmed its previous guidance, with underlying sales forecast to grow above 4% by the end of the year. The company also expects adjusted operating profit to rise 7-9%.
Campbell’s soup sales in the US suffered, falling 1% as sales of the company’s condensed and ready-to-serve soups declined.
