Campbell’s has posted $1.66 billion in sales for its fiscal fourth quarter results for 2017 – a 1% sales decline from $1.68 billion in the same period last year.
It is believed that the company has seen a seasonal decline in hot soups, which is typical in the warmer summer months. The firm has said it expects sales to drop again in 2018, with the purchase of Pacific Foods still pending.
Campbell’s chief executive officer Denise Morrison said: “The operating environment for the packaged foods industry remains challenging due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviours and the dynamic retailer landscape.
“In the fourth quarter, Global Biscuits and Snacks was soft on the top line but generated a solid double-digit earnings increase versus the year-ago quarter. Americas Simple Meals and Beverages continued to deliver against its portfolio role, with sales performance in line with the categories in which we compete and margin expansion. While Campbell Fresh sales increased slightly and the bottom line was disappointing, we expect to return to profitable growth going forward.
“In fiscal 2017, we have made progress in several key areas, including increasing our successful multi-year cost savings initiative to $450 million by the end of fiscal 2020. The pending acquisition of Pacific Foods will add a purpose-driven, real food brand with a solid track record of growth to our portfolio.
“Additionally, our new Campbell Fresh leadership team has taken steps to enhance our quality processes and address capacity constraints toward our objective of returning the division to growth.”
The company has said that it expects another difficult environment next year, with a focus on health, well-being, and snacking.
© FoodBev Media Ltd 2017