Campbell Soup Q4 2021 Earnings Report
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%.
Campbell Soup
Campbell Soup
Campbell Soup 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