Campbell Soup Company has reported a 7% rise in full-year net sales and organic net sales, as its fourth-quarter results were boosted by increased at-home consumption.
The company’s full-year net sales stood at $8.69 billion driven by gains in both its divisions. Packaged foods such as soups, spreadables and snacks continued to accelerate in growth, reflecting an increase in demand as at-home food consumption elevated.
Campbell’s fourth-quarter followed a similar pattern as its successful third quarter results in which it raised its 2020 outlook after witnessing an increase in demand for its products amid the pandemic. Fourth-quarter net sales increased 18% to $2.11 billion, compared to $1.78 billion the year before.
Campbell’s fourth-quarter results also benefited from an extra week falling in the quarter.
Within its meals and beverages segment, Campbell’s net sales in the fourth-quarter grew by 28%. Excluding the additional week in the quarter, net sales increased 19%, primarily reflecting good performance across its US retail business in its soups, V8 beverages, Prego pasta sauces and Campbell’s pasta.
Operating profit rose by 24% in the unit and Campbell says the strong fourth-quarter results has enabled the further acceleration of its strategy to return relevance and growth to its brands.
Meanwhile, the company’s snack unit saw an increase of 11% in net sales, largely driven by good performance in its fresh bakery products, Pepperidge Farm cookies, Goldfish Crackers and Snyder’s of Hanover pretzels, as well as its Kettle Brand.
During its fourth quarter, Campbell achieved $45 million in savings under its multi-year cost savings programme inclusive of Snyder’s-Lance synergies, bringing the total programme-to-date savings up to $725 million.
Given the uncertain environment amid Covid-19, Campbell is providing guidance for the first-quarter of fiscal 2021 only and has forecast current-quarter net sales to increase between 5% and 7%.
Mark Clouse, Campbell’s president and CEO, said: “We continued to invest in our businesses during the quarter as we experienced unprecedented demand for our products and welcomed millions of new households to the Campbell portfolio.
“This quarter concluded a year that furthered our strategic plan and solidified a significantly strengthened foundation that we will build upon going forward as we begin fiscal 2021.”
© FoodBev Media Ltd 2020