CAMDEN, N.J.--(BUSINESS WIRE)--Campbell Soup Company (NYSE:CPB) today reported its second-quarter results for fiscal 2017.
- Net Sales Decreased 1 Percent, Organic Sales Decreased 2 Percent
- Campbell Records Pre-Tax Non-Cash Impairment Charges of $212 Million, or $0.58 Per Share, Related to Campbell Fresh Segment
- Earnings Before Interest and Taxes (EBIT) Decreased 50 Percent, Adjusted EBIT Decreased 1 Percent
- Earnings Per Share (EPS) Decreased 61 Percent to $0.33, Adjusted EPS Increased 5 Percent to $0.91 Reflecting Lower Adjusted Tax Rate
- Campbell Reaffirms Fiscal 2017 Guidance
- Campbell Increases Cost Savings Program Target from $300 Million by Fiscal 2018 to $450 Million by Fiscal 2020
CEO Comments
Denise Morrison, Campbell’s President and Chief Executive Officer, said, “I am not satisfied with our sales performance this quarter. Declines were most prominent in Campbell Fresh driven by a market share decline and weather-related issues in carrots, capacity constraints from the Bolthouse Farms Protein PLUS recall last June, and Garden Fresh Gourmet. Although V8 shelf-stable beverages declined, I am encouraged by the positive momentum in our core U.S. soup, simple meals and Pepperidge Farm snacks businesses. U.S. soup sales increased in the quarter, driven by our ready-to-serve varieties, such as Chunky and new Well Yes!, which performed above expectations.
“C-Fresh performance was below our expectations. The new C-Fresh management team has conducted an extensive review of the business and has determined the recovery will take longer to execute than we originally planned. As a result, we no longer expect C-Fresh to grow this fiscal year. Despite these challenges, we remain confident in the growth potential of the packaged fresh category. C-Fresh continues to be an important strategic business for Campbell to meet growing consumer demand for fresh foods and interest in health and well-being.
“We continued to over-deliver on our cost savings initiative, and now expect to achieve our target a year ahead of schedule. We have increased our savings target from $300 million by the end of fiscal 2018 to $450 million by the end of fiscal 2020. Looking ahead, we expect to improve our sales performance in the back half and are maintaining our guidance for the fiscal year.”
