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Campbell Soup
🇺🇸 NASDAQ:CPB
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•
Jan 29, 2023

Campbell Soup Q2 2023 Earnings Report

Campbell Soup's Q2 2023 performance showcased double-digit growth in net sales and EPS, driven by favorable pricing and strong brand performance, leading to an increased fiscal year 2023 guidance.

Key Takeaways

Campbell Soup Company reported a strong second quarter in fiscal year 2023, with double-digit increases in net sales and EPS. The company raised its full-year fiscal 2023 net sales guidance and the midpoint of adjusted EBIT and adjusted EPS guidance range, reflecting confidence in its continued performance.

Net Sales increased 12% and Organic Net Sales increased 13% due to favorable net price realization and continued brand strength.

Reported Earnings Before Interest and Taxes (EBIT) increased 8% to $350 million. Adjusted EBIT increased 14% to $362 million.

Reported Earnings Per Share (EPS) increased 10% to $0.77. Adjusted EPS increased 16% to $0.80.

Full-year fiscal 2023 net sales guidance was raised and the midpoint of adjusted EBIT and adjusted EPS guidance range was raised reflecting the continued strength of the company's performance

Total Revenue
$2.49B
Previous year: $2.21B
+12.5%
EPS
$0.8
Previous year: $0.69
+15.9%
Organic Net Sales Growth
13%
Previous year: -2%
-750.0%
Gross Margin
30.5%
Gross Profit
$759M
Previous year: $669M
+13.5%
Cash and Equivalents
$158M
Previous year: $357M
-55.7%
Free Cash Flow
$732M
Previous year: $766M
-4.4%
Total Assets
$12B
Previous year: $12B
-0.2%

Campbell Soup

Campbell Soup

Campbell Soup Revenue by Segment

Forward Guidance

Campbell is raising its full-year fiscal 2023 net sales outlook and raising the midpoint of its adjusted EBIT and adjusted EPS outlook from the guidance provided on December 7, 2022.

Positive Outlook

  • Net Sales: +8.5% to +10%
  • Organic Net Sales: +8.5% to +10%
  • Adjusted EBIT: +4.5% to +6.5%
  • Adjusted EPS: $2.95 to $3.00
  • The higher revenue expectations reflect the strength of Campbell’s brands with price elasticities remaining favorable to historical norms and continued strong supply chain execution..

Challenges Ahead

  • Updated adjusted EBIT and adjusted EPS guidance reflect planned investment to sustain momentum and value for consumers, as well as higher year-over-year estimated pension and post retirement headwinds.
  • Fiscal year 2023 pre-tax pension and post-retirement benefit income is now expected to be lower by approximately $45 million, or $0.12 per share, compared to the prior year.
  • This represents approximately 3.5% of adjusted EBIT growth and approximately 4% of adjusted EPS growth, a 50-basis point increase from previous estimates as a result of interim remeasurements.
  • The plans continue to be well-funded.
  • Unspecified

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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