A tough quarter for its fresh food business meant Campbell Soup Company (NYSE:CPB) missing market forecasts in its latest quarter.
Operating profits at Campbell Fresh dropped by almost two-thirds in the three months to July as The Bolthouse Farms arm was hit by higher carrot costs and a recall of protein drinks in June.
Denise Morrison, chief executive, said she was not pleased with the fourth quarter even though profits for the year to June were in line with previous guidance.
Earnings in the final quarter fell to 46c a share from 49c before one-offs compared to forecasts of 50c. Sales were flat at US$1.69bn.
For the year overall, Campbell’s posted an underlying profit of US$1.47bn or US$2.94 earnings and for the current year forecast adjusted earnings of between $3.00 to $3.09 a share with sales to be flat.
"While we have made progress, we recognize we need to deliver sales growth -- and it remains a top priority," Morrison said.
Shares fell 5% to US$57.60.