CAMDEN, New Jersey — Campbell Soup said Wednesday its quarterly profit tumbled 36 percent as sales of its canned soups and vegetable juice fell.
The company, whose brands include V8 juice, Pepperidge Farm cookies and Prego pasta sauces, has been struggling as Americans migrate toward foods they feel are fresher or more wholesome.
The shift has dented the popularity of Campbell's canned soups in particular, and prompted the company to try and appeal to people in their 20s and 30s with updated offerings. About two years ago, for instance, it rolled out a line of "Campbell's Go" soups that come in microwavable pouches and flavors like Spicy Chorizo and Golden Lentil with Madras Curry.
More broadly, Campbell CEO Denise Morrison has been working to reshape the company, including the acquisitions of premium juice maker Bolthouse Farms and baby food maker Plum Organics. Morrison has noted that the "packaged fresh" category is growing faster than the broader industry.
In January, Campbell also said it would restructure the company to create divisions based on food types to help expand its brands and save about $200 million in costs over three years.
For the quarter ended Feb. 1, the company said sales of its condensed soups in the U.S. fell 11 percent from the previous year while sales of ready-to-serve soups like Chunky were flat. U.S. beverage sales fell 4 percent on weak demand for V8 V-Fusion, while sales at its Bolthouse unit, which also makes bagged baby carrots and salad dressings, rose 1 percent.
Sales at its global snacking unit, which makes Pepperidge Farm products, were about the same as the previous year.
Earlier this month, Campbell cut its 2015 earnings outlook to between $2.32 per share and $2.38 per share from $2.42 per share to $2.50 per share. Analysts expected earnings of $2.39, according to FactSet. Campbell expects revenue for the year to be down 1 percent to up 1 percent from the year before.
Campbell Soup Co. reported net income of $207 million, or 66 cents per share, for its fiscal second quarter. Analysts on average expected 67 cents per share, according to Zacks Investment Research.
The company earned $325 million, or $1.03 per share, a year ago, including operations that have since been discontinued.
Revenue fell 2 percent to $2.23 billion, but was higher than the $2.22 billion analysts expected, according to Zacks.
Its shares were down 1 at $46.73. Shares of the company, based in Camden, New Jersey, are up 7.5 percent in the past 12 months.
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