Campbell Reports Fourth Quarter Fiscal 2022 Results and Provides Guidance for Fiscal 2023

Campbell Soup Company announced its fourth quarter and fiscal year 2022 results.

For the fourth trimester:

  • Net sales and organic net sales increased 6% to $2.0 billion.
  • Earnings before interest and taxes (EBIT) fell to $170 million. Adjusted EBIT increased 5% to $269 million.
  • Earnings per share (EPS) from continuing operations decreased to $0.32. Adjusted EPS rose 8% to $0.56.

For the full year:

  • Net sales increased 1% and organic net sales increased 2% to $8.6 billion.
  • EBIT decreased to $1.2 billion. Adjusted EBIT decreased 4% to $1.3 billion.
  • EPS from continuing operations of $2.51. Adjusted EPS of $2.85 compared to $2.86 the previous year.

“I’m proud of our team for delivering full-year Adjusted EPS at the high end of our initial fiscal 2022 guidance range, despite the volatile environment,” said Mark Clouse, President and Chief Executive Officer. direction of Campbell, in the ad. “In fiscal 2022, we demonstrated a significant acceleration in execution across the business with improved supply chain performance and effective revenue management to counter inflation. Our strong foundation and momentum will stand us in good stead in fiscal 2023 as we continue to move forward to unlock Campbell’s full growth potential. »

Sector operational review

Meals and drinks

Net sales for the quarter increased by 6%. Organic net sales, which exclude currency impacts, increased 7% driven by higher sales of soups in the US and gains in foodservice and Prego pasta sauces. Inflation-linked pricing and sales discounts were partially offset by volume declines and increased promotional spending. Sales of soups in the United States increased 6% due to gains in ready-to-serve soups and condensed soups, partially offset by declines in broths.

Food and beverage operating profit in the quarter increased 18%, primarily due to higher gross margin and lower marketing and sales expenses, partially offset by higher administrative expenses. Gross margin percentage improved, reflecting ongoing inflation easing with pricing actions and supply chain productivity improvements. Lower volume and an unfavorable mix, as well as higher levels of promotional spend, put pressure on the gross margin percentage.

Snacks

Net sales for the quarter, both published and organic, increased 6%, driven by sales of power brands which increased 9%. Snack sales increased due to higher sales of salty snacks, primarily Kettle Brand and Cape Cod potato chips, as well as cookies and crackers, primarily Goldfish crackers. Inflation-related pricing and discounts were partially offset by increased promotional spending and lower volumes.

Snacks operating income in the quarter increased 3% primarily due to higher gross margin, partially offset by higher marketing and sales expenses and higher administrative expenses. Gross margin percentage remained relatively flat, reflecting ongoing inflation easing with pricing actions, supply chain productivity improvements and cost reduction initiatives, partially offset by higher higher promotional spend, lower volume and an unfavorable mix.

Forecast for fiscal year 2023

After a strong end to fiscal 2022, Campbell is providing guidance for fiscal 2023 reflecting expectations of continued strong consumer demand for its portfolio of brands. With previous pricing actions fully reflected on shelves and elasticities expected to be slightly above fiscal 2022 levels, the company expects sales growth across both divisions. The company expects better supply chain execution and disciplined investments in its brands to drive market share recovery. Productivity improvements and cost reduction initiatives will continue to play an important role in mitigating inflation, which is expected to remain elevated.

Find the full report here.

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