uploads///CPB Sales

What Drove Campbell Soup’s Q2 Top Line?


Nov. 20 2020, Updated 3:40 p.m. ET

Sales exceed expectations

Campbell Soup (CPB) posted better-than-expected sales for the second quarter of fiscal 2019. Campbell Soup’s net sales of $2.71 billion jumped 24.4% on a YoY basis and surpassed analysts’ estimate. The acquisitions of Snyder’s-Lance and Pacific Foods contributed 26% to the top-line growth. However, organic sales remained flat as increased sales in the Global Biscuits and Snacks segment were offset by declines in the Campbell Fresh and Meals and Beverages segment.

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In comparison, the top line of the company’s peers also gained from their recent acquisitions. J.M. Smucker’s (SJM) recent acquisitions and divestitures contributed 5% to its top-line growth during the last reported quarter. Meanwhile, General Mills’ (GIS) acquisitions and divestitures added ~8% to its second-quarter net sales. The acquisition of RXBAR and Multipro contributed 8.2% to Kellogg’s (K) top-line growth rate during the last reported quarter.

Sales by segments

Net sales in the company’s Meals and Beverages segment rose 1% driven by a 4% contribution from its recent acquisition. However, organic sales decreased by 1% as growth in beverages was more than offset by lower sales in Canada as well as lower Plum and Prego sales.

Net sales in Global Biscuits and Snacks soared 76% YoY, reflecting the acquisition of Snyder’s-Lance. The segment’s organic sales increased 3%, driven by growth in Arnott’s biscuits, Pepperidge Farm fresh bakery products, and Goldfish crackers.

Campbell Fresh segment’s net sales decreased 7% on a YoY basis, reflecting declines in refrigerated soups, Bolthouse Farms refrigerated beverages, and Garden Fresh Gourmet.


Management reaffirmed its outlook and expects fiscal 2019 sales to be in the range of $9.98 billion to $10.10 billion. Campbell Soup reported net sales of $8.69 billion in fiscal 2018. The YoY growth reflects benefits from its recent acquisitions of Pacific Foods and Snyder’s-Lance.


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