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Aug 01, 2021
Campbell Soup Q4 2021 Earnings Report
Campbell Soup's Q4 2021 performance reflected sales decline due to cycling elevated demand and strategic plan advancement.
Key Takeaways
Campbell Soup Company reported a decrease in net sales by 11% and a decrease in organic net sales by 4% for the fourth quarter of fiscal year 2021. Earnings per share (EPS) from continuing operations were $0.95, while adjusted EPS decreased by 13% to $0.55.
Net Sales decreased 11% and Organic Net Sales decreased 4% due to cycling elevated demand and partial retailer inventory recovery in the prior year.
Earnings Per Share (EPS) from Continuing Operations were $0.95.
Adjusted EPS decreased 13% to $0.55, which included an approximately $0.04 impact from the additional week in fiscal 2020.
Gross margin decreased to 31.3% from 35.4% last year, with adjusted gross margin decreasing 420 basis points to 31.4%.
Revenue by Segment
Forward Guidance
The company provided full-year fiscal 2022 guidance, anticipating continued cycling of elevated demand, accelerating inflationary pressures, and a constrained labor market partially mitigated by in-market momentum and pricing strategies.
Positive Outlook
- Positive net price realization.
- Supply chain productivity improvements.
- Cost savings initiatives.
- Year-over-year EBIT margin improvement in the second half of the year
- Strong plans to manage inflation.
Challenges Ahead
- Continued cycling of elevated demand.
- Accelerating inflationary pressures.
- Constrained labor market.
- First quarter is expected to be the most challenging.
- First half margins will continue to be impacted by transitional headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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