CAMDEN, N.J.--(BUSINESS WIRE)--Sep. 3, 2015-- Campbell Soup Company today reported its fourth-quarter and full-year results for fiscal 2015.
Highlights
- Reported Results Include Charges Related to Cost Savings Initiatives, One Less Week Compared to Fiscal 2014 and the Negative Impact of Currency Translation
- Fourth-Quarter Sales Decreased 9 Percent, Organic Sales Increased 1 Percent
- Fourth-Quarter Adjusted EPS from Continuing Operations Increased 5 Percent to $0.43
- Full-Year Sales Decreased 2 Percent, Organic Sales Increased 1 Percent
- Full-Year Adjusted EPS from Continuing Operations of $2.46 was Comparable to Prior Year
Fourth-Quarter Results from Continuing Operations
Sales decreased 9 percent to $1.693 billion primarily due to the impact of one less week compared to the year-ago quarter and the negative impact of currency translation. Organic sales increased 1 percent from higher selling prices and lower promotional spending, partly offset by lower volume.
Gross margin increased from 34.1 percent to 36.1 percent. Excluding items impacting comparability in the prior year, adjusted gross margin improved 1.8 percentage points. The increase in adjusted gross margin was due to productivity improvements, higher selling prices and lower promotional spending, partly offset by input cost inflation.
Marketing and selling expenses decreased 7 percent to $176 million, primarily driven by the impact of currency translation and lower marketing overhead and selling expenses, partly offset by increased advertising and consumer promotion expenses. Administrative expenses increased 19 percent to $177 million, primarily driven by increased incentive compensation expense and $13 million of costs related to the implementation of the new organizational structure and cost reduction initiatives.
Adjusted EBIT increased 5 percent to $234 million, reflecting a higher gross margin percentage, partly offset by increased administrative expenses and the negative impact of currency translation.
Net interest expense decreased $3 million to $27 million, primarily driven by the impact of one less week compared to the year-ago quarter. The tax rate decreased 1.1 percentage points to 32.7 percent. Excluding items impacting comparability, the adjusted tax rate increased 0.8 percentage points to 34.8 percent.
Full-Year Results from Continuing Operations
Sales decreased 2 percent to $8.082 billion, primarily due to the negative impact of currency translation and one less week compared to the prior year, partly offset by higher selling prices and an increase in volume. Organic sales increased 1 percent with gains in four of the company’s five reportable segments.
Adjusted EBIT decreased 2 percent to $1.219 billion, reflecting an adjusted gross margin percentage decline of 0.7 points, the unfavorable impact of currency translation and higher incentive compensation expense, partly offset by volume gains and lower marketing expenses.
Net interest expense decreased $14 million to $105 million, reflecting lower levels of debt. The tax rate decreased 2.1 percentage points to 30.2 percent. Excluding items impacting comparability, the adjusted tax rate decreased 0.8 percentage points to 31.0 percent. The decrease was primarily due to the favorable resolution of an intercompany pricing agreement between the U.S. and Canada. Full report.
