of the company, which also sells Pepperidge Farm snacks and Prego pasta
sauce, fell as much as 5 percent to $54.16 in morning trade on Friday.
Soup, like other processed packaged food makers, has been vulnerable to
changing consumer tastes toward fresher and healthier foods.
cater to those new tastes, Campbell Soup created its own fresh-food
unit in 2015 to sell carrots, carrot ingredients, refrigerated beverages
and salad dressings, but the business has been struggling.
premature harvest that led to smaller carrots last year, resulted in
market share losses while a recall of protein shakes further added to
in the unit, which contributes 14 percent to total revenue, fell 6
percent in the third quarter ended April 30, hurt in part by
manufacturing constraints related to the recall.
experienced significantly lower consumption across almost all of our
categories... we felt it most acutely in February," Campbell Soup Chief
Executive Denise Morrison said on a post-earnings call.
Sales in its Americas simple meals and beverages unit, the company's largest by revenue, dipped 2 percent in the quarter.
Weak demand for condensed soups and broths as well as V8 vegetable juices, contributed to the decline.
trends improved as the quarter progressed, growth in March and April
was insufficient to offset the earlier weakness," Morrison said.
sales fell nearly 1 percent to $1.85 billion, missing analysts' average
estimate of $1.87 billion, according to Thomson Reuters I/B/E/S.
The company said it expects its
full-year sales to be flat to down 1 percent compared with its prior
forecast of flat to up 1 percent.
Campbell Soup, however, raised its adjusted profit forecast for the year to $3.04-$3.09 per share from $3.00-$3.09 per share.
Excluding certain items, Campbell Soup earned 59 cents per share in the quarter, missing analysts' average estimate of 64 cents.
income attributable to the company fell to $176 million, or 58 cents
per share, partly due to a pretax charge related to its cost-saving
The company earned $185 million, or 59 cents per share, a year earlier.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by Martina D'Couto)