Updated from 9:44 a.m. EST with stock price
Campbell Soup (CPB) on Friday reported weaker-than-expected revenue for the fiscal second quarter, hurt by declines in its fresh unit, which includes Bolthouse Farms juices and Garden Fresh Gourmet. The stock was down 6.91% to $58.23 in mid-afternoon trading today.
Second-quarter revenue of $2.17 billion fell short of analysts' estimates of $2.22 billion. Sales in the fresh segment dropped 8% to $260 million. But adjusted earnings of 91 cents per share topped analysts' projections of 88 cents per share.
"I am not satisfied with our sales performance this quarter," CEO Denise Morrison said in a statement.
Declines were most prominent in the Campbell Fresh division, driven by a market share decrease and weather-related issues in carrots, capacity constraints from the Bolthouse Farms Protein PLUS recall last June and Garden Fresh Gourmet, Morrison added.
The Camden, N.J.-based food company voluntarily recalled about 3.8 million Bolthouse Farms protein drinks last year after receiving consumer complaints, including reports of illness.
Campbell fresh performance was below the company's expectations and the unit's new management team has conducted an extensive review of the business. They have determined that recovery will take longer to execute than planned.
"As a result, we no longer expect C-Fresh to grow this fiscal year," Morrison said. The fresh unit is an "important strategic" business for Campbell to meet growing consumer demand for fresh goods and interest in health and well-being.
V8 shelf-stable beverages declined during the quarter, but the company is "encouraged" by the positive momentum in its core U.S. soup, simple meals and Pepperidge Farm snacks businesses.