CAMDEN, N.J. — The Snyder’s-Lance, Inc. acquisition again benefitted the Campbell Soup Co. in the first quarter ended Oct. 28, and the company continues to find ways to integrate the acquisition into its Global Biscuits and Snacks segment.
“There are numerous examples where we're transferring expertise across the portfolio such as applying our real food knowledge to drive reinventions in products like Lance crackers with color sourced from plants and Pop Secret made with natural flavors,” said Keith R. McLoughlin, interim president and chief executive officer for Campbell Soup Co., in a Nov. 20 earnings call.
He added that within Global Biscuits and Snacks, Campbell Soup will expand capacity for its Goldfish, Milano and Kettle brands.
The Global Biscuits and Snacks segment had operating earnings of $154 million, up 32% from the previous year’s first quarter. Sales of $1,218 million were up 77%. Excluding the benefit of the Snyder’s-Lance acquisition, which was completed in March, and the impact of currency translation, sales in Global Biscuits and Snacks were down 1%.
Six of eight key brands in the Snyder’s-Lance acquisition grew market share in the quarter: Lance, Kettle, Cape Cod, Pretzel Crisps, Emerald and Late July. Sales of Goldfish crackers, a Pepperidge Farm brand, increased in the quarter even though a voluntary product recall in July had a negative effect.
Camden-based Campbell Soup Co. in the quarter ended Oct. 28 posted net earnings of $194 million, or 64c per share on the common stock, which was down 29% from $275 million, or 91c per share, in the previous year’s first quarter. Net sales in the quarter increased 25% to $2,694 million from $2,161 million thanks to a 29-point benefit from the acquisitions of Snyder’s-Lance, Inc. and Pacific Foods of Oregon. Organic sales declined 3%, primarily because of higher promotional spending.