Campbell Soup Company results improve
Arnott's Tim Tam is part of Campbell Soup Co's portfolio
American parent company of Arnott’s, Campbell Soup Company, has reported better than expected results in an update of the three months ended the 30 October 2016.
For the quarter, Campbell’s Soup Company reported a profit of US $292 million, a profit which is 50 per cent higher than what it achieved for the same quarter last year.
Campbell’s said sales within its global biscuits and snacks division, which includes Arnott’s, increased by 3 per cent on last year to US $671 million for the quarter.
Segment operating earnings within the global biscuit and snacks division however decreased by two per cent to US $112 million. Campbell’s said the decrease was primarily driven by increased advertising expenses, which were partly offset by the favourable impact of currency translation.
Campbell Soup Company acquired Arnott’s in 1997 with the business a major shareholder in Arnott’s since the 1980s.
Campbell’s turns to fresh foods
Campbell has acquired a number of ‘fresh food’ brands in recent years to help off-set consumer’s losing interest in processed, packaged foods often deemed ‘unhealthy’.
Campbell’s acquisition have included dip producer Garden Fresh Gourmet and juice and smoothie producer, Bolthouse Farms.
Despite the move towards healthier brands, Campbell’s business recently took a hit when in June 2016 Campbell’s voluntarily recalled a Bolthouse branded protein drink due to possible spoilage.
Chief Executive Officer of Campbell’s, Denise Morrison, said despite the recall the company’s 2017 financial year is off to a solid start relative to expectations.
“As expected, organic sales were down slightly compared to the prior year, due the performance of Campbell Fresh,” Morrison said.
“Campbell Fresh continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality,” Morrison stated.