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Campbell Soup (CPB) to Increase Goldfish Crackers' Production
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Campbell Soup Company (CPB - Free Report) has been making constant efforts to expand the production of Goldfish crackers. In latest developments, the company has unveiled plans to invest nearly $160 million in its Richmond, UT, manufacturing facility to expand the production of the same to resonate well with the rising consumer demand. This facility is expected to help grow the bakery’s output of Goldfish by almost 50 percent, and hence produce above 5 million Goldfish per hour or 1,500 Goldfish per second.
The Goldfish line, which is likely to be operational by 2024 end, marks the company’s third capacity expansion of the same over the last two years. This follows bakery expansions in Lakeland, Florida and Willard, OH. We note that the company presently employs over 400 people in the Cache Valley region, and looks forward to employ for more than 80 jobs via its new investment.
The aforesaid expansion plan also involves the construction of an onsite flour mill, which will be separately owned and operated. Per the terms of the project, Utah Flour Milling, LLC will develop a flour mill which is adjacent and connected to the company’s bakery.
The mill, which represents a partnership between PHM Brands’ Panhandle Milling and NIPPN CORPORATION, will help the company boost supply reliability, provide capacity and increase plant efficiency. The mill is also expected to lower the site’s greenhouse gas emissions by eliminating more than 2,200 trucks per year.
What’s More?
Campbell Soup has been benefiting from its growing snacks business. During the third quarter of fiscal 2023, net sales in the company’s snack division rose 12% (also organically) to $1,121 million. The upside can be attributed to sales of the company’s eight power brands, which rose 16%. Sales growth was fueled by a rise in cookies and crackers, specifically Goldfish crackers, Lance sandwich crackers and salty snacks like Kettle Brand potato chips, among others. The company expects to see continued strength in the snacks business in fiscal 2024.
Image Source: Zacks Investment Research
This Zacks Rank #3 (Hold) company has also been progressing well with its cost savings plan. The company’s strategy of concentrating on supply-chain efficiencies, along with curtailing costs and reinvesting part of these savings in areas with high-growth potential, is noteworthy. Through the third quarter of fiscal 2023, the company generated $880 million in savings under its multi-year cost-saving program, including Snyder’s-Lance synergies. Management remains on track to deliver savings worth $1 billion by the fiscal 2025-end.
However, shares of this food company have lost 15.8%, compared with the industry’s 1.6% fall. The company has been witnessing cost inflation and increased supply-chain costs. These have been affecting the its gross margin. Also, higher marketing and selling expenses and adjusted administrative expenses have been a deterrent.
Key Picks
Here we have highlighted three better-ranked stocks, namely Associated British Foods (ASBFY - Free Report) , Celsius Holdings (CELH - Free Report) and Lamb Weston (LW - Free Report) .
ASBFY’s expected earnings per share (EPS) growth rate for three to five years is 7%.
The Zacks Consensus Estimate for Associated British Foods’ current financial-year sales and earnings suggests growth of 30.4% and 4.2%, respectively, from the year-ago reported figures.
Celsius Holdings, which offers functional drinks and liquid supplements, currently has a Zacks Rank #2 (Buy). CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
Lamb Weston Holdings is a leading global manufacturer, marketer and distributor of value-added frozen potato products. The company currently carries a Zacks Rank of 2. LW’s expected EPS growth rate for three to five years is 42.7%.
The Zacks Consensus Estimate for LW’s current financial-year sales and earnings suggests growth of 29.6% and 117.3%, respectively, from the year-ago period’s actuals. LW has a trailing four-quarter earnings surprise of 47.6%, on average.
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Campbell Soup (CPB) to Increase Goldfish Crackers' Production
Campbell Soup Company (CPB - Free Report) has been making constant efforts to expand the production of Goldfish crackers. In latest developments, the company has unveiled plans to invest nearly $160 million in its Richmond, UT, manufacturing facility to expand the production of the same to resonate well with the rising consumer demand. This facility is expected to help grow the bakery’s output of Goldfish by almost 50 percent, and hence produce above 5 million Goldfish per hour or 1,500 Goldfish per second.
The Goldfish line, which is likely to be operational by 2024 end, marks the company’s third capacity expansion of the same over the last two years. This follows bakery expansions in Lakeland, Florida and Willard, OH. We note that the company presently employs over 400 people in the Cache Valley region, and looks forward to employ for more than 80 jobs via its new investment.
The aforesaid expansion plan also involves the construction of an onsite flour mill, which will be separately owned and operated. Per the terms of the project, Utah Flour Milling, LLC will develop a flour mill which is adjacent and connected to the company’s bakery.
The mill, which represents a partnership between PHM Brands’ Panhandle Milling and NIPPN CORPORATION, will help the company boost supply reliability, provide capacity and increase plant efficiency. The mill is also expected to lower the site’s greenhouse gas emissions by eliminating more than 2,200 trucks per year.
What’s More?
Campbell Soup has been benefiting from its growing snacks business. During the third quarter of fiscal 2023, net sales in the company’s snack division rose 12% (also organically) to $1,121 million. The upside can be attributed to sales of the company’s eight power brands, which rose 16%. Sales growth was fueled by a rise in cookies and crackers, specifically Goldfish crackers, Lance sandwich crackers and salty snacks like Kettle Brand potato chips, among others. The company expects to see continued strength in the snacks business in fiscal 2024.
Image Source: Zacks Investment Research
This Zacks Rank #3 (Hold) company has also been progressing well with its cost savings plan. The company’s strategy of concentrating on supply-chain efficiencies, along with curtailing costs and reinvesting part of these savings in areas with high-growth potential, is noteworthy. Through the third quarter of fiscal 2023, the company generated $880 million in savings under its multi-year cost-saving program, including Snyder’s-Lance synergies. Management remains on track to deliver savings worth $1 billion by the fiscal 2025-end.
However, shares of this food company have lost 15.8%, compared with the industry’s 1.6% fall. The company has been witnessing cost inflation and increased supply-chain costs. These have been affecting the its gross margin. Also, higher marketing and selling expenses and adjusted administrative expenses have been a deterrent.
Key Picks
Here we have highlighted three better-ranked stocks, namely Associated British Foods (ASBFY - Free Report) , Celsius Holdings (CELH - Free Report) and Lamb Weston (LW - Free Report) .
Associated British Foods is a diversified international food, ingredients and retail group, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ASBFY’s expected earnings per share (EPS) growth rate for three to five years is 7%.
The Zacks Consensus Estimate for Associated British Foods’ current financial-year sales and earnings suggests growth of 30.4% and 4.2%, respectively, from the year-ago reported figures.
Celsius Holdings, which offers functional drinks and liquid supplements, currently has a Zacks Rank #2 (Buy). CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
Lamb Weston Holdings is a leading global manufacturer, marketer and distributor of value-added frozen potato products. The company currently carries a Zacks Rank of 2. LW’s expected EPS growth rate for three to five years is 42.7%.
The Zacks Consensus Estimate for LW’s current financial-year sales and earnings suggests growth of 29.6% and 117.3%, respectively, from the year-ago period’s actuals. LW has a trailing four-quarter earnings surprise of 47.6%, on average.