Campbell Q1 profits riseThis article was originally published in Foodnews
CAMPBELL Soup Co's first quarter earnings rose by 17% as costs fell, due to increased efficiency and lower prices for grain ingredients, although revenue fell 2.1% to US$2.2 billion with a dip in sales in products such as condensed soup and Prego pasta sauce. Earnings were US$304 million in the first quarter, up from US$260 million last year. In September, the company projected profit growth of 5-7% and a net sales rise of 3-4%. Campbell has faced sales pressures on beverages and higher-priced offerings as shoppers stay away from products they see as unnecessary during the financial crisis. However, Campbell chief executive, Douglas Conant, believes condensed soup, priced at under US$1.00 per can, should do fine as the recession lingers.