US-based Campbell Soup Company reported a 16% increase in net sales from continuing operations in its third quarter of its fiscal 2019.
In the three months ended 28 April 2019, the group’s Adjusted EBITDA from continuing operations fell by 2%.
For the total combined company, net sales reached $2.4 million in the third quarter of 2019, an increase of 12% against the same period last year.
The company’s adjusted EBITDA also rose 5% overall.
Exceeded Outlook
Mark Clouse, Campbell’s President and CEO stated that the group’s results this quarter were ahead of expectations, “making it the third consecutive quarter that we met or exceeded our outlook”.
“In the quarter, we continued to drive sales growth in Global Biscuits and Snacks, fuelled by our US Snacks portfolio,” Clouse explained.
“The business continues its growth trends on Pepperidge Farm, coupled with improvements in the Snyder’s-Lance portfolio.
“In the Meals and Beverages segment, although there is more to do, we are making steady improvements on gross margin and profit and this business is showing signs of stabilisation,” he concluded.
Transformative Few Years
The Campbell Soup Company has had a busy and transformative last few years.
The group has embarked on a new strategy that has seen it divest a lot of its business.
Last August, the group announced plans to sell its international businesses and Fresh refrigerated-foods unit, following a months-long strategic review and pressure from hedge fund Third Point LLC to sell the whole company.
Since then, the company has sold off its Campbell Fresh division, including Bolthouse Farms and Garden Fresh Gourmet.
The group is also reportedly interested in selling UK crisp maker, Kettle Foods.
While streamlining its business model, it was reported that the soup-maker had settled on a compromise with Third Point, in which the activist investor was allowed to elect two of its members to Campbell’s board of directors, as well as having a say in the company’s next CEO.
News by Reuters, edited by Aidan O'Sullivan Checkout. Click subscribe to sign up for the Checkout print edition.
