Check out the profit rise at Campbell Soup after price increases and newer products helped the soup maker offset the impact of higher commodity costs.
Like most food companies, Campbell has been hit by rising costs for commodities like wheat and energy, although those costs have eased in recent weeks. But Campbell has introduced new products, including lower-sodium soups, to try to tap into U.S. consumer desire to eat healthier and bolster its results.
U.S. soup sales rose 6 percent in the quarter, excluding the impact of an extra week in the fiscal year. That follows on a 3 percent drop in U.S. soup sales in the previous quarter.
For 2009, Campbell expects sales to increase more than its 3 percent to 4 percent target, excluding divestitures and the extra week in 2008.
The company, whose brands also include Pepperidge Farm, V8 and Prego, forecast an adjusted earnings increase of 5 percent to 7 percent from a base of $2.09 a share, a forecast that equals about $2.19 to $2.23 a share. Analysts on average forecast $2.23 a share, according to Reuters Estimates.
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(Graphics: Campbell’s website)
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2 comments so far
Just heard Campbell’s discontinued their Select Gold Label line - I absolutely loved the creamy tomato parmesan bisque soup… Sooo sad over it… Maybe I can convince Progresso or another company to pick up that recipe.. Def. looking elsewhere to get it.
- Posted by StacyI’ve written to Campbell’s a couple of times about removing wheat and wheat products from their soups to accommodate people with celiac disease but it doesn’t seem to have come under review. With approximately 1 in 123 people with this disease I think it’s time to do something about putting wheat in products as a thickener or a filler.
- Posted by Sandra