Campbell Soup Company (NYSE:CPB) reported a solid financial performance, with its $127 million or 40 cents per share net income during the fourth quarter of the current fiscal year. The result is 27 percent higher than its $100 million, or 31 cents per share net income during the same period last year.
The company topped the 39 cents per share average consensus estimate of analysts, based on the survey conducted by Factset.
According to Campbell Soup Company (NYSE:CPB), its acquisition of the BoltHouse Farms last August 6 was included in its net profit during the fourth quarter.
In a statement, Denise Morrison, president and chief executive officer of Campbell Soup Company, said the company generated organic sales growth. According to him, the company’s solid performance was driven by strong sales in the U.S. soup and U.S. simple meals. The company also implemented advanced strategies to stabilize and increase its profitability in North America.
Morrison said, “Retailers continue to respond favorably to our new product development, and we have started shipping new products for fiscal 2013 launches… In the first year of our strategic transition, we’ve renewed our focus on consumer insights, reinvigorated our brand building efforts and significantly improved our innovation pipeline. With the acquisition of Bolthouse Farms, we positioned Campbell for growth in the rapidly expanding packaged fresh market.”
During the fourth quarter, Campbell Soup Company reported $1.61 billion revenue, higher than the $1.59 billion average expectations from analysts. The company’s sales in simple meals climbed by 7 percent, soup sales increased by 9 percent, condensed soup sales was up by 14 percent, and broth sales rose by 3 percent. Its ready-to-serve-soup increased by 1 percent because of the “Campbell Chunky” soups.
The company’s sales for its sauces also increased by 4 percent, due to strong sales in Prego pasta sauce and Pace Mexican sauces. Its beverage sales in the United States surged by 3 percent, which was brought on by strong sales of “V8 Splash” and “V8 V-Fusion.”
Campbell Soup’s sales in food services and sales of international simple meals and beverages declined by 3 percent and 7 percent respectively.
The company’s expects a profit of $2.56 to $2.57 per share, and a 10 percent to 12 percent increase in revenue between $8.48 billion to $8.64 billion for the fiscal year 2013.
Analysts from Morgan Stanley (NYSE:MS) said they are not surprised with the 2013 outlook of the company for underlying growth, following its significant reinvestments in 2012. However, analysts said they remain cautious on the ability of the company to return to its long-term growth targets, citing Campbell Soup Company (NYSE:CPB)’s ongoing “category group concerns and heavy developed market skew.” Morgan Stanley said its stock rating for Campbell Soup is underweight and its price target for the stock is $32 per share.
Campbell Soup Company (NYSE:CPB)’s shares are up by almost 1 percent to $35.45 per share during the morning trading at the New York Stock Exchange.