The Snyder’s-Lance, Inc. acquisition again benefitted the Campbell Soup Co. in the first quarter, which ended October 28.

Sales increased 25% to USD2.7bn reflecting a 29-point benefit from the recent acquisitions of Snyder’s-Lance and Pacific Foods, according to Campbell Soup’s financial report. Organic sales declined 3% driven primarily by higher promotional spending, including a 1-point negative impact from the adoption of new accounting guidance for revenue recognition, as well as lower volume.

For the global biscuits and snacks division, sales in the quarter increased 77% to USD1.2bn. Excluding the benefit from the acquisition of Snyder’s-Lance and the negative impact of currency translation, organic sales decreased 1% driven primarily by declines in Kelsen cookies in the U.S.

Segment operating earnings increased 32% to USD154m, reflecting a 45-point benefit from the acquisition of Snyder’s-Lance, according to the company. Excluding the impact of the acquisition, segment operating earnings declined due primarily to a lower gross margin percentage reflecting higher levels of cost inflation.

Keith McLoughlin, Campbell’s interim President and CEO stated: “As we focus Campbell on our Snacks and Meals and Beverages businesses in our core North American market, we are driving increased operating discipline across the company. During the quarter we started to see improved trends in U.S. soup, a return to sales growth in our V8 business, and continued solid performance in Campbell Snacks. Additionally, we are delivering targeted cost savings and synergies, as well as driving higher cash flow through improvements in working capital. In line with the key priorities of our strategic review, we also launched the processes to divest Campbell International and Campbell Fresh, both of which have garnered strong interest from a range of potential buyers”.