Revenue climbed 6 percent to $1.61 billion from $1.52 billion, helped partly by higher prices, lower promotional spending and strength in the baking and snacking segment. Wall Street expected revenue of $1.58 billion.
The company said Friday that soup profits improved on reduced promotional spending, while higher costs and increased promotional spending lowered U.S. beverage profits.
Sales for the U.S. Simple Meals division dropped 8 percent in the quarter, as soup sales fell 9 percent. Campbell said soup volumes were hurt by reduced promotional spending and increased prices. Sales of Prego pasta sauce fell due to competition, while sales of Pace Mexican sauce declined mostly because of people buying store brands.
The U.S. beverage unit's sales dipped 1 percent, with sales of "V8" vegetable juice down because of competition. Sales of V8 V-Fusion were helped by the debut of V-Fusion + Tea, some new flavors and 8 oz. slim cans.
Sales for the global baking and snacking segment increased 17 percent, helped by higher sales of Pepperidge Farm products, cookies, crackers and frozen products. Arnott's sales rose, driven by sales of Shapes crackers and Tim Tam chocolate biscuits.
North American food-service sales climbed 10 percent.
The international simple meals and beverages unit reported a 12 percent rise in sales, with sales up in Europe, Canada and the Asia Pacific region.
For the year, net income fell 5 percent to $805 million, or $2.42 per share, compared with $844 million, or $2.42 per share, in the prior year.
Annual revenue edged up 1 percent to $7.72 billion from $7.68 billion.
