Campbell Soup Co.(NYSE:CPB) shares were slightly lower after the firm reported disappointing fourth-quarter results with net sales dropping by 1% from the year-ago period and warned of a difficult opearting environment in 2018.
In the fourth quarter ending July 30, net sales slid to US$1.664bn from US$1.687bn in the corresponding period last year, driven by a 1% decline in organic sales, reflecting lower volume.
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The company reported earnings before interest and taxes (EBIT) of US$440mln as compared to a loss of US$37mln in the prior-year quarter.
Denise Morrison, Campbell’s President and Chief Executive Officer, said: “The operating environment for the packaged foods industry remains challenging due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviors and the dynamic retailer landscape."
Morrison added: “Looking ahead to fiscal 2018, we expect the operating environment to remain difficult. We will continue to position Campbell for long-term growth by managing costs aggressively and re-investing a portion of those savings back in the business with a focus on our strategic imperatives of real food, digital and e-commerce, health and well-being, and snacking.”
Campbell expects sales to change by -2% to 0%, adjusted earnings before interest and taxes (EBIT) to change by -1% to 1%, and adjusted earnings per share (EPS) to change by 0% to 2%, or US$3.04 to US$3.11 per share.
In pre-market deals Campbell shares were down 1.10% at US$50.25 before shedding over 5% to $47.48 in the regular session