Campbell Soup said yesterday that its quarterly profit slightly topped expectations on higher gross margin as the company cut costs amid a consumer shift to less-processed foods.
The company said in July it is targeting $250 million in cost savings annually by the close of fiscal 2018. It has also tried to lift sales by increasing its organic food offerings, removing artificial flavours from its products, and buying companies in faster growing categories. In June, Campbell said it was buying hummus and salsa maker Garden Fresh Gourmet for $231 million.
Campbell is struggling to increase its top line as people opt for food items that are organic, gluten-free, high in protein and generally perceived as healthier.
Net sales fell 9 per cent to $1.69 billion, in line with analysts estimate. – (Reuters)
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