Campbell Soup reports decrease in Q1 earnings

US-based Campbell Soup reported that the net earnings for the first quarter of 2011 declined 5% to $265m, compared with the same period in 2010, due to lower volumes and cost inflation.

Despite the company trying to improve its soup business, sales declined 1% to $2.16bn in the quarter that ended 30 October.

While sales in its US Simple Meals segment dropped by 3% to $874m, the Global Baking and Snacking unit, which includes Pepperidge Farm, saw a growth of 4% to $568m.

Sales at International Simple Meals and Beverages and US Beverages were down 3% to $359m and 198m, respectively.

However, North America Foodservice posted a 6% rise in sales to $162m, due to higher volumes in fresh chilled soup.

Campbell’s president and CEO Denise Morrison said the overall first-quarter performance was in line with the expectations.

"US Simple Meals, Pepperidge Farm and North America Foodservice met or exceeded expectations; US Beverages and International did not," Morrison added.