Campbell Soup, which disregarded Wall Street estimates for first-quarter profit and revenue, said produce delays of its carrot crop in California and higher costs are likely to disappoint its earnings in the current quarter.
Shares of the company were down 7 percent at $46.39 in up-to-date morning trading.
The company, which sells the Bolthouse Farms of rosy juices, said severe weather hurt crop production, primary the world’s largest soup maker to delay supply of carrot-based works to its customers.
Campbell, which expects delays to pick up in December, remarked transport disruptions have led to a big rise in supply-chain costs.
“Given the seasonality of our function and the timing of these unforeseen cost issues, we expect to see significantly weaker carrying out in the second quarter, followed by improvements in the second half,” Campbell’s Subvene Chief Anthony DiSilvestro said on the conference call.
The company also required delays in finalizing an agreement with a key customer over a promotional program whim deepen its soup sales losses in the United States in the first half of the year.
J.P. Morgan analyst Ken Goldman voted Campbell’s weak results underscore the lower demand that packaged-food parties have been facing.
“But we remind investors that the two major problems (a dissolute promotion at Wal-Mart, carrots) are CPB-specific,” Goldman said.
The company’s callow food unit, which includes Bolthouse Farms and Garden Alert Gourmet brands, has been witnessing sales declines since concluding year due to a premature harvest of carrots and recall of protein drinks.
In the essential quarter, the Pepperidge Farm snacks maker said gross scopes fell 2.4 percent, leading the company to cut its fiscal 2018 regulated profit to $2.95 to $3.02 per share from previously stated $3.04 to $3.11.
This was further down the analysts’ average estimate of $3.05 per share, according to Thomson Reuters I/B/E/S.
Excluding particulars, Campbell earned 92 cents per share on revenue of $2.16 billion in the leading quarter ended Oct. 29.
Analysts on average expected revenue of $2.17 billion and profit of 97 cents per piece.