(Reuters) – Campbell Soup Co reported lower-than-expected quarterly sales and profit, as retailers clamped down on soup inventories and the company warned that its 2018 sales could fall.
Shares of the company, which also sells Pepperidge Farm snacks and Prego pasta sauce, fell 4.5 percent to $48 before the bell on Thursday.
Campbell Soup, like other packaged food makers, has been struggling as consumers opt for organic, healthier alternatives instead of processed foods and make more purchases online than at stores, which are the company’s biggest distributors.
The company said it expected its full-year sales to be flat to down 2 percent and adjusted profit to be $3.04 to $3.11 per share.
Analysts on average had expected earnings of $3.19 per share, according to Thomson Reuters I/B/E/S.
The company reported a net income of $318 million, or $1.04 per share, in the fourth quarter ended July 30, compared with a loss of $81 million, or 26 cents per share, a year earlier.
Excluding certain items, the company earned 52 cents per share.
Net sales fell 1.4 percent to $1.66 billion, hurt in part by retailers stocking fewer soups.
Analysts on average had expected a profit of 55 cents per share and revenue of $1.69 billion. (Reporting by Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)