CAMDEN, N.J.--(BUSINESS WIRE)--May 22, 2015-- Campbell Soup Company today reported its results for the third quarter of fiscal 2015.
Sales decreased 4 percent to $1.9 billion, primarily due to the negative impact of currency translation. Organic sales decreased 1 percent with lower volume, partly offset by lower promotional spending and higher selling prices.
Gross margin increased from 34.3 percent to 35.9 percent. Excluding items impacting comparability in the prior year, gross margin improved 0.7 percentage points. The increase in adjusted gross margin was due to productivity improvements, lower promotional spending and higher selling prices, partly offset by cost inflation and other supply chain costs.
Marketing and selling expenses decreased 2 percent to $213 million, primarily driven by the impact of currency translation and lower marketing overhead expenses, partly offset by increased advertising and consumer promotion expenses. Administrative expenses increased 5 percent to $141 million. Excluding $9 million of costs related to the implementation of the new organizational structure and cost reduction initiatives, adjusted administrative expenses decreased 1 percent to $132 million.
Adjusted EBIT decreased 2 percent to $305 million, reflecting the unfavorable impact of currency translation and higher marketing expenses on a constant currency basis, partly offset by a higher gross margin percentage.
Net interest expense decreased $2 million to $28 million, reflecting lower levels of debt. The tax rate decreased 0.5 percentage points to 29.7 percent. Excluding items impacting comparability, the adjusted tax rate decreased 0.4 percentage points to 30.3 percent. View the full report here.
