CAMDEN, N.J. — Operating earnings in the Global Biscuits and Snacks division of Campbell Soup Co. increased 10% in fiscal 2016, buoyed by strong support from the company’s Pepperidge Farm brand. Earnings in the year ended July 31 totaled $422 million, up from $383 million in the same period a year ago. Sales, meanwhile, fell 3% to $2,564 million from $2,631 million.
“For the year our Global Biscuits and Snacks division made progress in performing against its portfolio role,” Denise Morrison, president and chief executive officer of Campbell Soup, said during a Sept. 1 conference call with analysts. “Organic sales increased 1%, and operating earnings were up 10%. Pepperidge Farm delivered strong performance, and our Asia-Pacific team drove solid sales results in a highly competitive and concentrated trading environment. The emphasis on growing our (iconic) brands, Goldfish, Tim Tam, and Milano, as well as revenue management initiatives and improved supply chain performance drove our results.”
|Denise Morrison, president and chief executive officer of Campbell Soup|
Ms. Morrison said Campbell Soup remains focused on delivering the division’s role of expanding in both developed and developing markets while improving margins.
“In the United States we have higher levels of investment to drive sustained Goldfish growth, continued momentum for Milano, expanded Tim Tam distribution and increased innovation in our fresh bakery business,” she said. “In Australia, we are focused on strengthening our Arnott’s brand through integrated marketing and relevant consumer-driven innovation. In developing markets we expect continued growth in Malaysia and improved performance in China and Indonesia.”
During the fourth quarter of fiscal 2016, operating earnings in the Global Biscuits and Snacks unit totaled $81 million, up 5% from $77 million in the same period a year ago. Sales were $622 million, up narrowly from $617 million.
For fiscal 2016, Campbell Soup net income fell to $563 million, equal to $1.82 per share on the common stock, down from $666 million, or $2.13 per share, for fiscal 2015.Sales for the year fell slightly to $7,961 million from $8,082 million the year prior.