Dive Brief:
- Campbell Soup reported relatively flat sales of $2.20 billion for the fiscal first quarter 2017 and a 1% decrease in organic revenue, according to the company's earnings report Tuesday.
- The company's quarterly net income of $292 million, or $0.94 per share, saw an increase over $194 million, or $0.62 per share, during the same period last year.
- Campbell maintained its outlook on fiscal full-year sales to be flat to up 1% and for adjusted per-share earnings to increase 2% to 5%.
Dive Insight
Campbell Fresh seemed like a potential bright spot for the company, expanding its portfolio beyond processed foods in the center store aisles and to the increasingly trafficked store perimeter. Campbell Fresh has also played an integral role in the company's efforts to make better-for-you products a larger part of its product selection.
But Campbell Fresh is also what dragged down organic sales for the company this quarter. The segment "continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality," Campbell president and CEO Denise Morrison said in a statement.
Campbell Fresh selected new management in September after a similarly disappointing performance from the segment in the previously reported quarter. Morrison has tasked this new management with turning around Bolthouse Farms and the Campbell Fresh category to return the company to sustained top-line growth.
The company also anticipates a rebound in the U.S. soup category, which was flat this quarter. That includes Campbell's upcoming launch of the Well Yes ready-to-serve soup brand. Sales for Campbell's global biscuits and snacks unit saw a 1% uptick, primarily due to gains from the Pepperidge Farm brand.