Citing Poor U.S. Soup Sales, Campbell Cuts Fiscal Forecast
Campbell Soup Company has announced a revised fiscal forecast for the remainder of 2014, from an expected overall growth between four and five percent, to approximately three percent in the current fiscal year.
Denise Morrison, Campbell's president and CEO, cited poor performance in the company's most recognizable product line.
"Although I am encouraged by our 7 percent sales increase in U.S. Simple Meals, I am disappointed that our plans did not drive stronger sales results in U.S. Soup," said Morrisson. "We recognize that we were cycling a year-ago quarter when we delivered 14 percent growth in U.S. Soup."
Overall, the company saw a modest organic sales growth of one percent in the third quarter. Recently, Campbell's settled an $18 million pension plan charge attributed to the closure of the company's San Francisco facility.
Total sales for the company rose 0.4 percent to $1.97 billion, but fell short of the estimated $2 billion, according to Thomson Reuters.
In closing, Campbell's cited "risks and uncertainties" that might impact Campbell's expectations about future sales, including "strong competitive responses to the company's efforts to leverage its brand power" and "changes in consumer demand for the company's products," among several others.
Karen Lo is an associate editor at The Daily Meal. Follow her on Twitter @appleplexy.