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Campbell reports Q2, first-half 2013 results

February 19, 2013
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Camden, N.J.-based The Campbell Soup Co. reported a sales increase of 10 percent, with an organic sales increase of 1 percent, reaching $2.3 billion in the second quarter of the 2013 fiscal year. In addition, the company reported a 5 percent increase in adjusted earnings before interest and taxes (EBIT) including its acquisition of Bolthouse Farms.

Net earnings for the quarter, which ended Jan. 27, were $190 million, or $0.60 per share, compared with $205 million, or $0.64 per share, in the prior year, the company reports. The current and prior years’ reported net earnings included charges associated with restructuring programs. Excluding restructuring and restructuring-related charges, adjusted net earnings increased 6 percent to $220 million, compared with $207 million in the prior year’s quarter, and adjusted net earnings per share increased 9 percent to $0.70 compared with $0.64 in the year-ago quarter.

Net earnings for the first half were $435 million, or $1.38 per share, compared with $470 million, or $1.45 per share, in the year-ago period. Excluding restructuring, restructuring-related charges and acquisition transaction costs, adjusted net earnings increased 5 percent to $499 million in the half-year. Sales for the first half of fiscal 2013 were approximately $4.7 billion, an increase of 9 percent from the year-ago period.

Sales for U.S. beverages were $182 million for the second quarter, a decrease of 3 percent compared with the year-ago period, due to declines from volume and mix — particularly sales declines for the V8 vegetable juice and V8 V-Fusion lines, the company reported.V8 Splash juice beverages sales increased slightly during the term. For the half-year, sales decreased 4 percent to $371 million.

However, operating earnings for the beverage department in the quarter were $37 million compared with $34 million in the prior year. This increase was primarily driven by lower advertising expenses and productivity improvements and partially offset by volume declines and cost inflation, the company reports. Similarly, operating earnings in the first half increased to $67 million from $64 million, primarily driven by lower advertising and consumer promotion expenses and productivity initiatives and partly offset by volume declines and cost inflation.

“Despite weakness in our U.S. beverages and North America Foodservice businesses, our first-half business results were positive,” said Denise Morrison, Campbell’s president and chief executive officer, in a statement. “Although profits in U.S. beverages improved, we have more work to do to drive the top line and continue to stabilize profit in a sluggish shelf-stable juice category. Halfway through our fiscal year, we are making progress against our plans to return Campbell to sustainable, profitable net sales growth.”

For the Bolthouse and Foodservice businesses, sales were $352 million for the second quarter, with the acquisition of Bolthouse Farms contributing $195 million. Sales in North America Foodservice declined 10 percent compared with a year ago.

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