US food company Campbell Soup has reported that its net earnings increased 2.2% for the third quarter of 2013 to $181m, compared with $177m for the same period in 2012, due to double-digit sales growth in condensed, ready-to-serve soups and broth businesses.
For the quarter ended 28 April 2013, net sales increased 14.9% to $2.09bn, compared with $1.82bn for the same period in the last year, driven by improved soup sales and the acquisition of Bolthouse Farms last year.
The acquisition of Bolthouse Farms added 11% to sales, volume and mix added 5%, price and sales allowances added 1%, while increased promotional spending subtracted 2%.
Campbell Soup stated that during the quarter, the company drove profitable growth in many of its core North American businesses through enhanced products, stronger advertising and effective in-store presence.
Campbell Soup president and chief executive officer Denise Morrison said that the is strengthening its core portfolio through consistent excellence in execution, optimised investment and sustaining product innovation.
"We are also expanding into higher-growth categories, adjacencies and geographies. Our strategic plan is intended to deliver sustainable, profitable net sales growth," Morrison added.
The company is still in the early stages of executing the plan, and believes that the third-quarter results reflect the long-term promise of the plan.
For the nine-months ended 28 April 2013, the company reported net earnings of $616m, compared with $647m in the year ago period, while net sales increased 11% to $6.76bn.
As of 28 April 2013, the company's net debt increased by $1.42bn to $3.8bn, primarily due to funding the purchase of Bolthouse Farms.
Campbell Soup revised its previous fiscal 2013 guidance - the company now expects sales to increase at the upper end of the 10% to 12%, adjusted EBIT at the upper end of 4% to 6%, and adjusted EPS between 6 and 7%.
For the full-year, the company expects Bolthouse Farms to contribute approximately $750m to sales and add approximately $0.06 to adjusted EPS.
