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Nov 01, 2020

Campbell Soup Q1 2021 Earnings Report

Reported strong sales growth across both divisions and double-digit gains in EBIT and EPS.

Key Takeaways

Campbell Soup Company reported a strong start to fiscal 2021, with net sales increasing by 7% and organic net sales increasing by 8%. The company's Meals & Beverages division drove sales and margin growth, while the Snacks division delivered strong results and increased capacity in key power brands. The Board approved a 6% increase in the quarterly dividend.

Net Sales increased 7%; Organic Net Sales increased 8% reflecting continued elevated demand for Campbell's brands.

Earnings Before Interest and Taxes (EBIT) increased 45% to $461 million. Adjusted EBIT increased 18% to $463 million.

Earnings Per Share (EPS) from Continuing Operations of $1.02 increased 82%. Adjusted EPS of $1.02 increased 31%.

Increased quarterly dividend by 6% to $0.37 per share.

Total Revenue
$2.34B
Previous year: $2.18B
+7.2%
EPS
$1.02
Previous year: $0.78
+30.8%
Organic Net Sales Growth
8%
Gross Profit
$813M
Previous year: $738M
+10.2%
Cash and Equivalents
$722M
Previous year: $61M
+1083.6%
Free Cash Flow
$106M
Previous year: $84M
+26.2%
Total Assets
$12.4B
Previous year: $13.1B
-5.3%

Campbell Soup

Campbell Soup

Campbell Soup Revenue by Segment

Forward Guidance

Based on our expectation of a continued elevated demand landscape and increased investment in our brands, the company is providing second-quarter fiscal 2021 guidance.

Positive Outlook

  • Net Sales +5% to +7%
  • Adjusted EBIT +5% to +7%
  • Adjusted EPS +12% to +15%
  • Adjusted EPS $0.81 to $0.83

Revenue & Expenses

Visualization of income flow from segment revenue to net income