Improved sales and earnings performance within the baking and snacks division of the Campbell Soup for the fiscal year 2010 were due to favourable currency impact and margin growth in both Pepperidge Farm and Arnott’s, said the US company.
The product portfolio of the division includes Pepperidge Farm cookies, crackers, breads and frozen products in the US and Arnott's biscuits in Australia and Asia Pacific.
The global manufacturer of products including soup, baked snacks, and healthy beverages, in second quarter financial results reporting, noted that sales for its bakery and snacks division were $489m, an increase of 11 per cent from a year ago.
The company also said that operating earnings for its baked goods and snacks products were $73m compared with $53m in the prior-year period, when it also had $2m in costs related to a restructuring programme to improve operational efficiency.
“Sales of Pepperidge Farm increased due to higher volumes and the acquisition of Ecce Panis, Inc., partially offset by increased promotional spending,” the company said.
“Excluding the acquisition of Ecce Panis, sales from the bakery business decreased, reflecting higher promotional spending, partly offset by increased volumes. In the cookies and crackers business, sales increased reflecting the continued solid growth of Goldfish snack crackers, partly offset by a decline in cookies.”
The manufacturer also noted higher sales of both savoury and sweet biscuit products helped drive Arnott’s sales in Australia.
Overall, Campbell Soup company posted earnings of $259m in the second quarter, up from $233m, in the same period a year ago. Net sales were $2,153m, up from $2,122m.
For the six months ended January 31, net income was $563m, up 14 per cent from $493m, in the first six months of fiscal 2009. Net sales were $4,356m, down slightly from $4,372m.