Campbell Soup shares rise after beating earnings estimates
US food producer’s net sales grow 24%, helped by acquisitions of Snyder’s-Lance and Pacific Foods
Chicago — Campbell Soup on Wednesday reported better-than-expected adjusted earnings, helped by its acquisitions of Snyder’s-Lance and Pacific Foods. Excluding items, the company earned US77c a share in the second quarter ended January 27, beating the average analyst estimate of 70c, according to Refinitiv data. Campbell’s shares jumped 5% in premarket trading. Net sales rose 24% to $2.71bn, while organic sales were flat. In 2017, Campbell agreed to buy pretzels and Cape Cod chips maker Snyder’s-Lance for $4.87bn, and organic soup maker Pacific Foods for $700m. Like other packaged-food companies, Campbell has been struggling to attract young, increasingly health-conscious consumers. It has tried to make its portfolio healthier and launched a cost-cutting and divestment plan in August. Campbell reported a net quarterly loss, hurt by higher restructuring costs and a $346m writedown of its troubled fresh-food business.
This is the fourth time New Jersey-based Campbell has writte...
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