Campbell Soup baking unit flat in fiscal 2013
CAMDEN, N.J. — Operating earnings within the Global Baking and Snacking division of the Campbell Soup Co. totaled $316 million in the fiscal year ended July 28, up narrowly from $315 million in fiscal 2012.
Campbell said the increase reflected growth in Pepperidge Farm, mostly offset by lower earnings in Arnott’s.
Sales rose 4% to $2,273 million, which compared with $2,193 million in fiscal 2012. Volume and mix added four percentage points and price and sales allowances added two points, while higher promotional spending subtracted two points.
For the fourth quarter, earnings were $84 million, up 1% from $83 million in the same period a year ago, while sales increased 3% to $570 million from $556 million.
“In our Pepperidge Farm business, we delivered continued growth in Goldfish crackers, revitalized the cookies business and expanded our share in fresh bakery,” said Denise Morrison, president and chief executive officer.
Overall, Ms. Morrison said Campbell made “solid progress” in fiscal 2013 as the company executed against its dual mandate to strengthen its core business and expand into higher growth spaces.
Net income in the year ended July 28 was $458 million, equal to $1.46 per share on the common stock, down sharply from $774 million, or $2.43 per share, in fiscal 2012. Excluding items impacting comparability in both years, adjusted net earnings increased 7% to $836 million.
Net sales for the full year totaled $8,052 million, up 12% from $7,175 million in fiscal 2012.
For the fourth quarter ended July 28, the company sustained a loss of $158 million, which compared with net income of $127 million, or 40c per share, during the same quarter of the previous year. Excluding items impacting comparability in both periods, adjusted net earnings increased 9% to $142 million compared with $130 million in the prior year’s quarter. Sales for the quarter were $1,723 million, up 13% from $1,519 million.