Shares of Campbell Soup Company (NYSE:CPB) ended Tuesday session in red amid volatile trading. The shares closed down -0.03 points or -0.05% at $57.70 with 2.15 million shares getting traded. Post opening the session at $57.68, the shares hit an intraday low of $57.55 and an intraday high of $58.00 and the price vacillated in this range throughout the day. The company has a market cap of $18.07 billion and the numbers of outstanding shares have been calculated to be 309.00 million shares.
Campbell Soup Company (CPB) on September 1, 2016 reported its fourth-quarter and full-year results for fiscal 2016 and announced a 12 percent increase in its quarterly dividend.
Denise Morrison, Campbell’s President and Chief Executive Officer, said, “We finished the year in line with our guidance, including strong profit performance. However, I am not pleased with the results of our fourth quarter. The performance of our Campbell Fresh business, driven predominantly by execution issues, is disappointing. We have taken and are taking steps designed to ensure the business performs to its potential. We remain confident in our Campbell Fresh strategy and its ability to deliver long-term growth consistent with its portfolio role, as the business remains well-positioned to capitalize on the health and well-being consumer trend. For the year, Americas Simple Meals and Beverages and Global Biscuits and Snacks delivered significant margin expansion, driving double-digit profit growth. Despite the difficult quarter, we delivered adjusted EPS growth of 11 percent for the year.”
Sales of $1.687 billion were comparable to prior year as the benefit from the acquisition of Garden Fresh Gourmet was offset by the decline in organic sales and the adverse impact of currency translation. Organic sales decreased 1 percent primarily driven by Campbell Fresh, reflecting declines in carrots and carrot ingredients, as well as the impact from the voluntary recall announced on June 22 of Bolthouse Farms Protein PLUS drinks. The estimated negative impact on net sales in the fourth quarter related to the recall and related production outages was approximately one percentage point.
Gross margin decreased from 33.2 percent to 32.4 percent. Excluding items impacting comparability, adjusted gross margin decreased 0.9 points. The decrease in adjusted gross margin was primarily driven by increased promotional spending, inflation, the impact of the Bolthouse Farms recall and related production outages, as well as higher carrot costs, partly offset by productivity improvements.
Marketing and selling expenses increased 14 percent to $216 million. Excluding items impacting comparability, adjusted marketing and selling expenses increased 14 percent to $196 million primarily due to higher advertising and consumer promotion expenses. Administrative expenses decreased 4 percent to $185 million. Excluding items impacting comparability, adjusted administrative expenses decreased 19 percent to $128 million primarily due to lower incentive compensation costs and the benefits from cost savings initiatives.
Shares of Hershey Co (NYSE:HSY) ended Tuesday session in green amid volatile trading. The shares closed up +0.49 points or 0.49% at $99.79 with 1.37 million shares getting traded. Post opening the session at $99.63, the shares hit an intraday low of $99.13 and an intraday high of $99.89 and the price vacillated in this range throughout the day. The company has a market cap of $21.22 billion and the numbers of outstanding shares have been calculated to be 152.57 million shares.
The Hershey Company manufactures, imports, markets, distributes, and sells confectionery products. The company operates through two segments, North America, and International and Other. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products comprising chewing gums and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items, including spreads, meat snacks, bars and snack bites, and mixes. The company provides its products primarily under the Hersheys, Reeses, Kisses, Jolly Rancher, Almond Joy, Brookside, Cadbury, Good & Plenty, Heath, Kit Kat, Lancaster, Payday, Rolo, Twizzlers, Whoppers, York, Scharffen Berger, Dagoba, Ice Breakers, Breathsavers, and Bubble Yum brands, as well as under the Golden Monkey, Pelon Pelo Rico, IO-IO, Nutrine, Maha Lacto, Jumpin, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The Hershey Company was founded in 1894 and is headquartered in Hershey, Pennsylvania.