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Jan 30, 2022
Campbell Soup Q2 2022 Earnings Report
Second quarter results were impacted by industry-wide inflation and supply constraints, while full-year guidance was reaffirmed.
Key Takeaways
Campbell Soup Company reported a 3% decrease in net sales and a 2% decrease in organic net sales for the second quarter of fiscal 2022. Adjusted EPS decreased by 16% to $0.69 due to industry-wide inflation and supply constraints. The company reaffirmed its full-year guidance, expecting improved financial performance in the second half of the year.
Earnings Per Share (EPS) from Continuing Operations were $0.70.
Adjusted EPS decreased 16% to $0.69 due to industry-wide inflation and supply constraints.
Net Sales decreased 3%; Organic Net Sales decreased 2%.
Full-year guidance reaffirmed.
Campbell Soup
Campbell Soup
Campbell Soup Revenue by Segment
Revenue by Segment
Meals & Beverages Revenue
CapyFin.comSnacks Revenue
CapyFin.com Forward Guidance
Campbell continues to expect full-year fiscal 2022 net sales, adjusted EBIT and adjusted EPS performance to be consistent with its guidance provided on December 8, 2021.
Positive Outlook
- Expected continued strong demand for the balance of the year
- Steady supply recovery
- Improved service levels particularly in the fourth quarter as labor recovers
- Wave two pricing will be fully reflected in the third quarter
- Company expects to continue managing inflationary headwinds through pricing, supply chain productivity improvements and cost savings initiatives
Challenges Ahead
- Core inflation is now expected to be low double-digits for the full year
- Impacts of, and associated responses to, the COVID-19 pandemic on our business, suppliers, customers, consumers and employees
- The company’s ability to execute on and realize the expected benefits from its strategy, including growing sales in snacks and growing/maintaining its market share position in soup
- The impact of strong competitive responses to the company’s efforts to leverage its brand power with product innovation, promotional programs and new advertising
- The risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies
Revenue & Expenses
Visualization of income flow from segment revenue to net income