CAMDEN, N.J.--(BUSINESS WIRE)--Nov. 25, 2014-- Campbell Soup Company (NYSE:CPB) today reported its results for the first quarter of fiscal 2015.
First-Quarter Results from Continuing Operations
For the quarter, sales increased 4 percent to $2.255 billion, driven by favorable volume and mix, partly offset by increased promotional spending and the negative impact of currency. Organic sales increased 5 percent with gains in four of the company’s reportable segments.
Gross margin declined 1.2 percentage points to 34.7 percent. Excluding items impacting comparability in the prior year, adjusted gross margin declined 1.3 percentage points to 34.7 percent. The decrease in adjusted gross margin was due to cost inflation, higher supply chain costs and higher promotional spending, partly offset by productivity improvements, the benefit from lapping the prior-year Plum recall and favorable mix.
Marketing and selling expenses decreased 5 percent to $247 million, driven primarily by lower advertising and consumer promotion expenses as compared with last year’s elevated levels. Administrative expenses decreased 9 percent to $135 million, primarily due to long-term incentive compensation costs and cost savings related to prior-year restructuring initiatives.
Adjusted EBIT increased 9 percent, reflecting higher sales, the benefit from lapping the prior-year Plum recall and a reduction in administrative and marketing expenses, partly offset by a lower gross margin percentage.
Net interest expense decreased $5 million to $25 million, reflecting lower levels of debt. The tax rate decreased 2.7 percentage points to 31.8 percent. Excluding items impacting comparability in the prior year, the adjusted tax rate decreased 0.4 percentage points to 31.8 percent. Full report.
