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U.S. food company Campbell Soup reported better-than-expected fourth-quarter profit, benefiting from cost cuts, sending shares up 5% before the bell.
To better focus on its mainstream soup and snack businesses, Campbell has been streamlining its operations by disposing its international and fresh businesses, including Bolthouse Farms and Garden Fresh Gourmet salsa.
Last month Campbell said it would sell Kelsen Group, a unit known for Royal Dansk cookies, to a Ferrero affiliated company for $300 million. It is also selling its Arnott's biscuits and some of its international operations.
The company has introduced new soup recipes with added chicken and tomatoes and eliminated preservatives to also draw in health-conscious customers.
For the quarter ended July 28, Campbell earned 42 cents, excluding items, beating Wall Street estimates by 1 cent, according to Refinitiv.
Net sales from continuing operations rose 2% to $1.78 billion compared to the year-ago quarter.
However, the company recorded a net loss attributable to its shareholders of $8 million, or 3 cents per share, compared with a profit of $94 million, or 31 cents per share.