Campbell Soup has posted a sales decline of 2% for its fiscal first quarter results for 2017/18, with net sales dipping to $2.16 billion from $2.20 billion.
Much of the decline is said to be down to a 9% decline in US sales of its iconic soup range. The company also pointed out that that competitive pressure is putting a strain on the top line with products such as its V8 vegetable juices having a weak demand.
While net income in the quarter fell to $275 million from $292 million experienced in the year before.
In a statement, Denise Morrison, Campbell’s president and chief executive officer said: “Our bottom line performance was negatively impacted by a lower adjusted gross margin rate due in part to cost inflation, higher carrot costs and escalating transportation and logistics costs following the hurricane season.
“In this challenging climate, we are focused on sharpening our plans for the remainder of the year while continuing to position Campbell for growth through investments to differentiate our brands, drive innovation and accelerate our e-commerce capabilities.”
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