US: Campbell Soup Co sees FY beverage profits fall
- Beverage net sales for the full-year increase by 3% to US$$774m
- Operating profits drop 26% to $134m
- Sales of V8 vegetable juice decline
Campbell Soup Co has announced its FY results
Campbell Soup Co's US beverages unit has seen full-year sales increase but profits drop, despite new products boosting its V8 V-Fusion line.
Net sales increased by 3% to US$$774m in the 12 months to the end of July, Campbell announced today (4 September), as part of its group results. Operating profits for its US beverages dropped by 26% to $134m, the company said, blaming cost inflation on juice concentrates and packaging materials as well as increased promotional spending.
Campbell president & CEO Denise Morrison said the company had focused in 2012 on driving growth in healthy beverages.
However, the company admitted declines in its V8 vegetable juices without giving specific details.
Sales of V8 V-Fusion beverages increased, helped by the launch of new items, including smoothies, energy, sparkling and children’s drinks, the company said.
Sales for the fourth quarter increased by 3% to $181m while operating profits fell by 17% to $25m.
Campbell's US beverages compris V8 vegetable juices, V8 Vfusion juices and juice beverages, V8 Splash juice beverages and Campbell’s tomato juice.
In July, Campbell announced the acquisition of vegetable juice-maker Bolthouse Farms for $1.55bn.
Campbell Soup's group profits increased by 27% to $127m, boosted by improved sales in its soup division.
To read the company's official release, click here.
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