Campbell Soup Posts Mixed Q1 Results

Campbell Soup Co CPB reported a first-quarter FY22 sales decline of 4% year-on-year, to $2.24 billion, missing the analyst consensus of $2.28 billion.

• Net sales from the Meals & Beverages segment declined 7%, and the Snacks segment fell 1%.
• The gross margin contracted 240 basis points Y/Y to 32.3%. Adjusted EBIT of $389 million decreased 15% Y/Y.
• Adjusted EPS of $0.89 beat the analyst consensus of $0.81.
• The company held $69 million in cash and equivalents as of October 31, 2021. Cash provided by operating activities totaled $288 million.
• "Topline was tempered by the expected cycling of a year ago retailer inventory replenishment and some industry-wide supply chain disruptions," said CEO Mark Clouse.
• Outlook: Campbell reaffirmed full-year guidance. It sees FY22 adjusted EPS of $2.75 - $2.85 versus the consensus of $2.76. The company expects FY22 sales growth of (2)% - 0%.
• Price Action: CPB shares are trading higher by 0.19% at $41.2 in premarket on the last check Wednesday.