The FINANCIAL — Campbell Soup Co. on September 3 said its fourth-quarter profit declined from the prior year, hit by charges, one less week and an adverse currency impact. The company sees full-year earnings within its long-term growth targets.
Attributable profit plunged to $68 million from $137 million in the prior year. Earnings per share dropped to $0.22 from $0.43, according to Nasdaq.
The latest results included incurred restructuring charges and implementation costs associated with the new organizational structure and cost reduction initiatives. Adjusted earnings per share totaled $0.43, while it was $0.41 last year.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.42 per share for the quarter. Analysts’ estimates typically exclude special items.
Net sales fell 9 percent to $1.693 billion from $1.852 billion in the previous year. The company attributed the sales decline to the impact of one less week compared to the year-ago quarter and the negative impact of currency translation. Analysts expected revenues of $1.69 billion.
Organic sales advanced 1 percent due to higher selling prices and lower promotional spending.
In U.S. Simple Meals, sales decreased 3 percent to $505 million, and organic sales for the segment increased 4 percent. U.S. soup sales decreased 2 percent due to the impact of one less week.
Global Baking and Snacking segment’s sales decreased 12 percent to $553 million, but grew 1 percent organically, driven by gains in Pepperidge Farm and Arnott’s, partly offset by declines in Kelsen.
International Simple Meals and Beverages reported sales of $142 million, down 24 percent from last year. Organic sales for the segment decreased 5 percent due to declines in Canada and Australia.
U.S. Beverages sales decreased 10 percent to $165 million and organic sales decreased 4 percent amid declines in V8 V-Fusion beverages.
In the Bolthouse and Foodservice segment, sales decreased 2 percent to $328 million, while organic sales increased 4 percent reflecting volume gains in Bolthouse Farms refrigerated beverages and salad dressings and in North America Foodservice.
Marketing and selling expenses decreased 7 percent to $176 million, primarily driven by currency translation and lower marketing overhead and selling expenses.
Looking ahead to the year, the company expects adjusted earnings per share to grow by 3 to 5 percent, or $2.53 to $2.58 per share, and sales to grow by 0 to 1 percent. Wall Street looks for earnings of $2.53 per share for the year.
The company said its outlook is within its long-term growth targets announced in July.
CPB closed up 1.9 percent on September 2 at $47.77.