- Campbell Soup reported loss of $158 million in its fourth quarter results Thursday, compared to $127 million in the same quarter last year.
- The loss is attributed to weaker-than-expected sales, higher costs and a $263 million write-down of its European simple-meals businesses, which it is in talks to sell to private equity firm CVC Capital Partners.
- Campbell is expecting 5% to 6% sales growth in the current fiscal year, primarily from its non-soup businesses like Pepperidge Farms and V8 juices, as well as acquisitions like baby food maker Plum Organics and Danish cookie maker Kelsen Group.
Campbell is looking to expand beyond its canned soup businesses due to waning consumer interest. Just last week, Hain Celestial CEO Irwin Simon highlighted the category's grim outlook during his company's fourth quarter earnings call, noting growth in the tetra recart and aseptic soup categories. Campbell's increased focus on Pepperidege Farms, V8 and recent acquisitions, which it expects to add $300 million to sales growth, is a wise move. To its credit, the company known for its iconic cans has also experimented with pouch packaging on its "Go" line to attract younger consumers.