Campbell Soup Company (NYSE: CPB) on Thursday announced fiscal fourth quarter earnings that beat analyst’ expectation. However, its shares still fell as the Company missed on revenue and plan to its international operation and fresh food business.
The soup company said net sales increased 33% to USD 2.219 Billion, boosted by its recent acquisitions of Snyder’s-Lance and Pacific Foods. Excluding certain items, the Company earned 25 cents per share.
Analysts polled by Thomson Reuters had projected earnings per share of 24 cents on revenue of USD 2.24 Billion.
Keith McLoughlin, Campbell’s interim President and CEO said, “Fiscal 2018 was a challenging year for Campbell. These results and our outlook for fiscal 2019 reinforce the need for the significant actions we announced this morning as part of our comprehensive, Board-led strategy and portfolio review. We believe these actions will put us on a path to create sustainable shareholder value.”
In a separate press release, Campbell Soup announced its plan to sell Campbell International (including Arnott’s and the Kelsen Group) and Campbell Fresh. The move is aiming to focus on the Company’s two core businesses: Campbell Snacks and Campbell Meals. The proceeds are expected to reduce debt.
Campbell’s interim President and CEO Keith McLoughlin said, “Campbell’s Board of Directors considered a full slate of strategic options, including optimizing the portfolio, divesting businesses, splitting the company, and pursuing a sale. The Board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer packaged goods business model. Importantly, the Board remains open and committed to evaluating all strategic options to enhance value in the future.