Campbell Soup Company (NYSE:CPB)’s net profit in the fourth quarter has risen 27 percent thanks to strong sales of its soup and other simple meal products, beating Street expectations. Its guidance for fiscal year 2013 also surpasses analysts’ views. All this had its effect on the stock which rose 5 percent in pre-market trading.
The company’s profits for the period ended July 29 were $127 million which works out to 40 cents per share. In comparison, last year’s profit for the same period was $100 million or 31 cents per share. If one time acquisition costs are excluded, the earnings per share is even higher, 41 cents. Even revenue figures, although flat at $1.61 billion, were still better than analysts’ estimates.
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In the simple meals category, sales jumped 7 percent. Soup sales rose by nine percent, while condensed soup sales rose by 4 percent. On the other hand, ready-to-serve soup sales climbed 1 percent. Sales of sauces jumped by 4 percent; beverages rose by 3 percent.
Higher costs and promotional expenditure pushed down gross margins. But according to the company, this was offset by higher selling prices and enhanced productivity.
The Camden, New Jersey based company made a profit of $774 million for the entire year, lower than last year’s $805 million. In terms of earnings per share, this works out to $2.41 per share. Annual revenues on the other hand, fell marginally from $7.72 billion to $7.71 billion.
For fiscal 2013, the company expects revenues to rise by 10 percent to 12 percent. This translates to $8.48 billion to $8.64 billion in revenues. It expects adjusted earnings between $2.51 per share and $2.57 per share.
Wall Street on the other hand expects revenues of $8.47 billion and earnings of $2.52 per share.
Shares of CPB closed lower by 0.06% to $35.12 and made a new 52-week high of $36.28.