CAMDEN, N.J. – Operating earnings within the Global Baking and Snacking unit of Campbell Soup Co. dropped 11% to $73 million for the third quarter ended April 29, which compared to $82 million during the previous year’s third quarter. Cost inflation and increased promotional spending primarily caused the earnings decline, which was offset partially by higher selling prices and productivity improvements, the company said May 21.
Third-quarter sales in Global Baking and Snacking increased 3% to $543 million from $529 million. Price and sales allowanced added 6% to sales and currency added 1%. Increased promotional spending subtracted 4%. Sales of Pepperidge Farm products increased. Goldfish snack crackers saw double-digit sales growth. Bakery sales decreased, which reflected declines in the category.
For the nine months ended April 29, the Global Baking and Snacking unit had operating earnings of $232 million, down from $263 million during the previous year, and sales of $1,637 million, up from $1,597 million during the previous year.
Companywide, Campbell Soup had third-quarter earnings of $177 million, or 55 cents per share, which compared with $187 million, or 57 cents per share, in the previous year’s third quarter. Companywide third-quarter sales were $1,821 million, up from $1813 million.