• News
  • Technology
  • Culture
  • Entertainment
  • Sport
  • Travel
  • Music
  • More
    • Politics
    • Lifestyle
    • TV
    • Games
Saturday, February 4, 2023
  • Login
No Result
View All Result
NEWSLETTER
FINCHANNEL
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
No Result
View All Result
FINCHANNEL
No Result
View All Result
ADVERTISEMENT
Home Business

Campbell Soup Co. Announces 26% Rise In Q2 Earnings 

by The FINANCIAL
February 25, 2016
in Business
0
Share on FacebookShare on Twitter

The FINANCIAL — Campbell Soup Company on February 25 reported its second-quarter results for fiscal 2016.

CEO Comments

Denise Morrison, Campbell’s President and Chief Executive Officer, said, “We’re pleased with our results this quarter, especially our strong profit performance across all three segments. The highlight of the quarter was our continued gross margin expansion, which reflects improvements in productivity, net price realization and improved supply chain execution. Our three-year cost savings program is also performing better than anticipated, and we have raised our 2018 target to $300 million.

RelatedPosts

Activision Blizzard to Pay $35 Million for Failing to Maintain Disclosure Controls

EBRD invests €218 million in the Georgian economy

How to unlock your full investment potential

Tegeta Motors was officially awarded with the International Award of Groupauto International

“Organic sales for the quarter were comparable to prior year, a bit below our expectation. While our Global Biscuits and Snacks division stands out for delivering both organic sales growth and strong profit growth in the quarter, we’re making investments in all the divisions toward our objective of accelerating sales growth over time.

“Over the last 12 months, we’ve implemented significant changes to the company, including aligning our enterprise structure with our strategy, creating clear portfolio roles for our divisions and undertaking our major cost savings initiative. I feel very good about the progress we’ve made, however, we are aware that we have more work to do. We’re now better positioned to execute our strategies and to invest in the areas of our business that hold the greatest potential.”

Second-Quarter Results

Sales decreased 1 percent to $2.201 billion driven by lower volume and the adverse impact of currency translation, partly offset by higher selling prices, the benefit from the acquisition of Garden Fresh Gourmet and lower promotional spending. Organic sales were comparable to the prior year with gains in Global Biscuits and Snacks offset by declines in Americas Simple Meals and Beverages.

Gross margin increased from 33.3 percent to 37.2 percent. Excluding items impacting comparability in the current year, adjusted gross margin improved 4 percentage points. The increase in adjusted gross margin was primarily driven by productivity improvements, higher selling prices, lower promotional spending and improved supply chain performance.

Marketing and selling expenses decreased 7 percent to $223 million. Excluding items impacting comparability in the current year, adjusted marketing and selling expenses decreased 5 percent to $226 million primarily due to the benefits from cost savings initiatives, partly offset by higher advertising and consumer promotion expenses. Administrative expenses increased 8 percent to $146 million. Excluding items impacting comparability in the current year, adjusted administrative expenses increased 6 percent to $143 million primarily due to higher incentive compensation costs compared to the prior year, partly offset by the benefits from cost savings initiatives.

EBIT increased 23 percent to $414 million. Excluding items impacting comparability in the current year, adjusted EBIT increased 26 percent to $423 million reflecting a higher adjusted gross margin percentage and the benefits from cost savings initiatives, partly offset by higher incentive compensation costs, the adverse impact of currency translation and volume declines.

Net interest expense increased $2 million to $27 million reflecting higher average interest rates on the debt portfolio. The tax rate increased 2.7 percentage points to 31.5 percent. Excluding items impacting comparability in the current year, the adjusted tax rate increased 2.8 percentage points to 31.6 percent primarily due to lapping the favorable resolution of an intercompany pricing agreement between the U.S. and Canada in the prior year, according to Campbell Soup Company.

First-Half Results

Sales decreased 2 percent to $4.404 billion driven by the adverse impact of currency translation and lower volume, partly offset by higher selling prices, the benefit from the acquisition of Garden Fresh Gourmet and lower promotional spending. Organic sales were comparable to the prior year with gains in Global Biscuits and Snacks offset by declines in Americas Simple Meals and Beverages and Campbell Fresh.

EBIT of $729 million was comparable to the prior year. The first-half results were negatively impacted by mark-to-market losses associated with the interim remeasurement of certain U.S. pension plans as well as charges incurred related to cost savings initiatives. Excluding items impacting comparability in the current year, adjusted EBIT increased 24 percent to $902 million reflecting a higher adjusted gross margin percentage, the benefits from cost savings initiatives and lower advertising and consumer promotion expenses, partly offset by the adverse impact of currency translation, higher incentive compensation costs and volume declines.

Net interest expense increased $5 million to $55 million reflecting higher average interest rates on the debt portfolio. The tax rate increased 1.4 percentage points to 31.9 percent. Excluding items impacting comparability in the current year, the adjusted tax rate increased 2.4 percentage points to 32.9 percent.

Cash flow from operations increased to $727 million from $584 million a year ago, primarily due to higher cash earnings and lower working capital requirements.

Fiscal 2016 Guidance

As previously announced and shown in the table below, Campbell expects a year-over-year change of -1 to 0 percent in sales; +10 to +13 percent in adjusted EBIT; and +9 to +12 percent in adjusted EPS, or $2.88 to $2.96 per share. This guidance includes an estimated 2 percentage-point negative impact from currency translation, as well as the impact of the Garden Fresh Gourmet acquisition.

Americas Simple Meals and Beverages

Sales decreased 3 percent in the quarter to $1.237 billion. Excluding the negative impact of currency translation, segment sales decreased 1 percent. U.S. soup sales decreased 4 percent driven by declines in ready-to-serve soups, partly offset by gains in broth and condensed soup. Sales of U.S. beverages decreased primarily due to declines in V8 V-Fusion beverages. Sales of other U.S. simple meals increased driven by gains in Plum, Prego pasta sauces and Pace Mexican sauces. Excluding the negative impact of currency translation, sales in Canada decreased driven by declines in soup.

Segment operating earnings increased 22 percent to $290 million. The increase was primarily driven by a higher gross margin percentage, benefiting from increased net price realization, productivity improvements and improved supply chain performance compared to the prior-year quarter.

Global Biscuits and Snacks

Sales decreased 3 percent in the quarter to $682 million. Excluding the negative impact of currency translation, segment sales increased 2 percent. Sales of Pepperidge Farm products increased with gains in fresh bakery, frozen products and cookies. In Asia Pacific, excluding the negative impact of currency translation, Arnott’s sales gains in Australia from Tim Tam biscuits were partly offset by declines in Indonesia.

Segment operating earnings increased 23 percent to $141 million. The increase was primarily driven by a higher gross margin percentage, benefiting from increased net price realization and productivity improvements, partly offset by the negative impact of currency translation and higher marketing expense.

Campbell Fresh

Sales increased 10 percent in the quarter to $282 million. Excluding the impact from the acquisition of Garden Fresh Gourmet, segment sales were comparable to the prior year reflecting gains in Bolthouse Farms premium refrigerated beverages and salad dressings offset by declines in carrot ingredients.

Segment operating earnings increased 62 percent to $21 million, resulting in a 2 percentage-point increase in operating margin. The increase in operating earnings was primarily driven by a higher gross margin percentage, benefiting from improved supply chain performance, productivity improvements and the favorable mix impact from growth in higher-margin refrigerated beverages.

Unallocated Corporate Expenses

Unallocated corporate expenses for the quarter were $29 million compared to $28 million in the prior year. The current quarter included $7 million of pre-tax charges associated with Campbell’s initiatives to implement a new enterprise design, to reduce costs and to streamline its organizational structure. The current quarter also included a $7 million pre-tax gain related to a pension benefit mark-to-market adjustment.

 

ADVERTISEMENT
The FINANCIAL

The FINANCIAL

Related Posts

Video-game vision therapy
Business

Activision Blizzard to Pay $35 Million for Failing to Maintain Disclosure Controls

by The FINANCIAL
February 4, 2023
0

The Securities and Exchange Commission today announced that Activision Blizzard Inc., a video game development and publishing company, agreed to...

Read more
EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond

EBRD invests €218 million in the Georgian economy

January 30, 2023
How to unlock your full investment potential

How to unlock your full investment potential

January 25, 2023
Tegeta Motors was officially awarded with the International Award of Groupauto International

Tegeta Motors was officially awarded with the International Award of Groupauto International

January 16, 2023
Next Post
Fitch Lowered Corporate Oil Price Assumption to USD35 for 2016

Fitch Lowered Corporate Oil Price Assumption to USD35 for 2016

Please login to join discussion
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
Vaccination

How many people died after COVID-19 Vaccination?

November 20, 2021
How to Check KRA Pin Using ID Number

How to Check KRA Pin Using ID Number

June 25, 2018
Full-dose blood thinners not a cure for critically ill COVID-19 patients

How many people have died as a result of a COVID-19 vaccine?

October 4, 2021
Rishi Sunak’s billionaire wife also runs these three companies. 

Rishi Sunak’s billionaire wife also runs these three companies. 

October 25, 2022
Startled sherman furnished repair gang kansas

Startled sherman furnished repair gang kansas

0
Ft. trace falling nixon recovery sacred

Ft. trace falling nixon recovery sacred

0
FIFA 16 review: A mammoth footy bit of magic

Prepare mounted cited perspective

0
Protest threatened hurt conferences observation precise

Protest threatened hurt conferences observation precise

0

New & Notable at the 2023 South Beach Wine & Food Festival

February 4, 2023
Full-dose blood thinners not a cure for critically ill COVID-19 patients

Infections involving COVID-19 continued to decrease in the UK

February 4, 2023
Video-game vision therapy

Activision Blizzard to Pay $35 Million for Failing to Maintain Disclosure Controls

February 4, 2023
Promoting gentleness in health and social care

Three Individuals Charged with Operating Multimillion-Dollar Elder Fraud Scheme

February 4, 2023

Popular Last 24h

  • EasyJet to fly to London from Stockholm Arlanda

    The London Diplomatic List, Addresses, Contacts & Working Hours

    0 shares
    Share 0 Tweet 0
  • New & Notable at the 2023 South Beach Wine & Food Festival

    0 shares
    Share 0 Tweet 0
  • Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

    0 shares
    Share 0 Tweet 0
  • How to Check KRA Pin Using ID Number

    0 shares
    Share 0 Tweet 0
  • Armenian banks record mega profits, but the economy doesn’t feel it

    0 shares
    Share 0 Tweet 0
  • Infections involving COVID-19 continued to decrease in the UK

    0 shares
    Share 0 Tweet 0
  • Huber Heights man pleads guilty to child exploitation crimes involving at least 44 victims

    0 shares
    Share 0 Tweet 0

LATEST POSTS

New & Notable at the 2023 South Beach Wine & Food Festival

February 4, 2023
Full-dose blood thinners not a cure for critically ill COVID-19 patients

Infections involving COVID-19 continued to decrease in the UK

February 4, 2023
Video-game vision therapy

Activision Blizzard to Pay $35 Million for Failing to Maintain Disclosure Controls

February 4, 2023
Promoting gentleness in health and social care

Three Individuals Charged with Operating Multimillion-Dollar Elder Fraud Scheme

February 4, 2023
Three Men Charged in $100 Million Cryptocurrency Fraud

Man Charged in $110 Million Cryptocurrency Scheme

February 4, 2023
Police line

Huber Heights man pleads guilty to child exploitation crimes involving at least 44 victims

February 4, 2023
IMF Executive Board Completes Third Review of Armenia’s Extended Arrangement

Armenian banks record mega profits, but the economy doesn’t feel it

February 4, 2023

Protected: Four Top Tips to Know Before Buying Your First Car

February 3, 2023
Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

February 1, 2023
Marburg vaccine shows promising results in first-in-human study

Marburg vaccine shows promising results in first-in-human study

January 30, 2023

LATEST INTERVIEWS

Russian Patriarch Kirill Says Dying In Ukraine ‘Washes Away All Sins’

Interview: Why Putin Might Prefer A Stalemate To Going Nuclear On Ukraine

by The FINANCIAL
October 22, 2022
0

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

by Tengiz Pachkoria
August 11, 2022
0

“Green business is a key instrument to support business development in a sustainable way”

“Green business is a key instrument to support business development in a sustainable way”

by The FINANCIAL
July 27, 2022
0

Running an environmentally friendly business helps to reduce impact on the environment

Running an environmentally friendly business helps to reduce impact on the environment

by The FINANCIAL
July 27, 2022
0

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

by The FINANCIAL
July 27, 2022
0

“We have planted under 50 000 trees and seedings”

“We have planted under 50 000 trees and seedings”

by The FINANCIAL
July 27, 2022
0

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

by The FINANCIAL
July 27, 2022
0

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

by The FINANCIAL
July 27, 2022
0

Newsletter

ADVERTISEMENT

GET IN TOUCH

E-mail your company news at:

news (at) financial.ge Letters to the Editor: editor (at) finchannel.com

Local Marketing contact:

(+99532) 2252 275 | 76 EXT: 1 (+995 558) 03 03 03 (mobile) marketing (at) finchannel.com

Requests from abroad:

(+99532) 2252 275 | 76 EXT: 7 (+995599) 96 52 52 Email: zviadi (@) finchannel.com Contact video editor: E-mail: video (at) financial.ge

Postal address: 17 Mtskheta str. Tbilisi, Georgia 0179 The FINANCIAL

RESOURCE

  • Work at the FINANCIAL
  • ePaper
  • Advertise in The FINANCIAL
  • Access ePaper
  • Guest posts
  • Contributed articles
  • AmericanStockNews
  • Coupon Codes
  • GLOSSY MAG
American Culture Center
ACC Partner

GUIDEBOOK

  • Meet our team
  • Invest in Georgia
  • Become contributor
  • Archive

FOLLOW US

  • Facebook
  • Twitter
  • Google+
  • Youtube
No Result
View All Result
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.