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Apr 30, 2023
Campbell Soup Q3 2023 Earnings Report
Campbell Soup's Q3 2023 results reflected a mix of sales growth and earnings decrease, driven by pricing strategies and cost management.
Key Takeaways
Campbell Soup Company reported a 5% increase in both reported and organic net sales, reaching $2.2 billion. However, the company experienced a decrease in reported EBIT by 14% to $254 million and a decrease in reported EPS by 15% to $0.53. The results were driven by favorable net price realization, offset by volume declines and increased expenses.
Net Sales increased by 5% due to favorable net price realization.
Reported EBIT decreased by 14% to $254 million, while adjusted EBIT decreased by 2% to $313 million.
Reported EPS decreased by 15% to $0.53, and adjusted EPS decreased by 3% to $0.68.
Full-year fiscal 2023 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 reaffirmed its full-year fiscal 2023 net sales, adjusted EBIT and adjusted EPS outlook from the guidance provided on March 8, 2023.
Positive Outlook
- Full-year fiscal 2023 net sales outlook reaffirmed.
- Full-year fiscal 2023 adjusted EBIT outlook reaffirmed.
- Full-year fiscal 2023 adjusted EPS outlook reaffirmed.
- The recent Emerald nuts business divestiture is not expected to have a material impact on fiscal year adjusted 2023 results.
- Adjusted EBIT and adjusted EPS guidance reflects planned investments in the fourth quarter to sustain momentum and value for consumers.
Challenges Ahead
- Fiscal year 2023 pre-tax pension and postretirement benefit income outlook is expected to be lower by approximately $45 million, or $0.12 per share, compared to the prior year.
- Lower pension and postretirement benefit income this year drove an approximate $12 million headwind to adjusted EBIT in the quarter.
- Lower pension and postretirement benefit income this year drove an approximate $0.03 headwind to adjusted EPS in the quarter.
- Anticipate that the recent Emerald nuts business divestiture, which closed on May 30, 2023, will not have a material impact on our fiscal year adjusted 2023 results, and accordingly, our full year guidance is inclusive of the lost sales and profits of that business for the remaining two months of the fiscal year.
- Our reaffirmed adjusted EBIT and adjusted EPS guidance reflects planned investments in the fourth quarter to sustain momentum and value for consumers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income