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Oct 31, 2021

Campbell Soup Q1 2022 Earnings Report

Campbell Soup's first-quarter results for fiscal year 2022 were reported, showing a decrease in net sales and adjusted EPS, but reaffirming full-year guidance.

Key Takeaways

Campbell Soup Company reported a 4% decrease in net sales and a 12% decrease in adjusted EPS for the first quarter of fiscal 2022. The company reaffirms its full-year guidance, adjusting for the exclusion of unrealized mark-to-market gains and losses on commodity hedges.

Net Sales decreased by 4%, with a similar decrease in Organic Net Sales, impacted by retailer inventory recovery in the prior year.

Adjusted EBIT decreased by 15% to $389 million.

Adjusted EPS decreased by 12% to $0.89.

Full-year guidance was reaffirmed, adjusted to exclude unrealized mark-to-market gains and losses on commodity hedges.

Total Revenue
$2.24B
Previous year: $2.34B
-4.4%
EPS
$0.89
Previous year: $1.02
-12.7%
Organic Net Sales Growth
-4%
Previous year: 8%
-150.0%
Gross Profit
$722M
Previous year: $813M
-11.2%
Cash and Equivalents
$69M
Previous year: $722M
-90.4%
Free Cash Flow
$219M
Previous year: $106M
+106.6%
Total Assets
$11.9B
Previous year: $12.4B
-4.2%

Campbell Soup

Campbell Soup

Campbell Soup Revenue by Segment

Forward Guidance

Campbell continues to expect full-year fiscal 2022 net sales and adjusted EPS performance to be consistent with its guidance provided on September 1, 2021. Full-year guidance reflects the continued cycling of elevated demand, accelerating inflationary pressures and a constrained labor market partially mitigated by continued in-market momentum and well-executed pricing, productivity plans and cost savings program.

Positive Outlook

  • Continued in-market momentum
  • Well-executed pricing strategies
  • Productivity plans
  • Cost savings program
  • Recovery of labor

Challenges Ahead

  • Continued cycling of elevated demand
  • Accelerating inflationary pressures
  • Constrained labor market
  • Additional core inflation across commodities
  • Higher labor-related costs

Revenue & Expenses

Visualization of income flow from segment revenue to net income