Q3 Fiscal 2024 Results
NYSE: CPB
- Sequential volume / mix improvement with stable organic net sales*. Double-digitgrowth in Adjusted Earnings Before Interest and Taxes* (EBIT) and Adjusted Earnings Per Share* (EPS).
- Sovos Brands, Inc. (Sovos Brands) performance ahead of expectations leading to neutral impact on Adjusted EPS in the quarter.
- In-marketperformance stable for Meals & Beverages with some pressure in Snacks reflecting the pace of consumer recovery.
- Remain on track for Snacks FY24 operating margin target.
- Full-yearFY24 guidance updated to reflect the expected performance of the base business and the impact of the recent acquisition.
Key Metrics
Three months ended 04/28/2024
Net Sales | Adj. EBIT* | Adj. EPS* | $ Consumption1 | ||||||||
$2.4 Billion | $354 Million | $0.75 | (2)% | ||||||||
i | N | vs. PY | |||||||||
et | |||||||||||
n | c | S | |||||||||
a | |||||||||||
g | a | ||||||||||
l | |||||||||||
r | e | ||||||||||
O | s | ||||||||||
* | |||||||||||
Flat | +13% | +10% | +6% | ||||||||
vs. PY | vs. PY | vs. PY | vs. 2YA |
"We are excited about the integration of the Sovos Brands business, which already is bringing significant incremental growth to our company as we continue to navigate the pace of consumer recovery."
Mark Clouse
President & CEO
Meals & Beverages
- Organic Net Sales* Flat vs. PY; (1)% on a two-year CAGR* basis
- $ Consumption1 (2)% vs. PY; Flat on a two-year CAGR basis
- Topline stabilization with sequential volume / mix improvement
- Condensed Cooking and Broth continue to benefit from consumers seeking stretchable foods
- Well-positionedItalian sauce portfolio with share strength in the quarter
Snacks
- Organic Net Sales* (1)% vs. PY; +6% on a two-year CAGR* basis
- $ Consumption1 (2) vs. PY; +6% on a two-year CAGR basis
- 8 Power Brands: Net Sales +2% vs. PY;
+9% on a two-year CAGR basis - Late July innovation fuels quarterly performance with net sales +26% vs. PY
- +190 bps operating margin growth
(Q3 FY24 YTD vs. Q3 FY22 YTD)
*See Non-GAAP reconciliation. 1 Total Circana US MULO $ Consumption latest 13 weeks ending 04/28/2024. Total Company and Meals & Beverages exclude Sovos Brands.
Campbell Soup Company | NYSE: CPB | Campbell updates its full-year fiscal 2024 | ||||||||||||||||||||||||||
Full-Year Fiscal 2024 Guidance | guidance for Net Sales, Adjusted EBIT and | ||||||||||||||||||||||||||
Adjusted EPS. | |||||||||||||||||||||||||||
Updates include Sovos Brands | |||||||||||||||||||||||||||
*See non-GAAP reconciliation | |||||||||||||||||||||||||||
FY2023 | Previous FY2024 | Updated FY2024 | |||||||||||||||||||||||||
1 A non-GAAP reconciliation is not provided for fiscal 2024 guidance as | |||||||||||||||||||||||||||
Results | Guidance | 1 | Guidance Including | impact of items such as actuarial gains or losses on pension and | |||||||||||||||||||||||
Sovos Brands1 | |||||||||||||||||||||||||||
the company is unable to reasonably estimate the full-year financial | |||||||||||||||||||||||||||
postretirement plans because these impacts are dependent on future | |||||||||||||||||||||||||||
($ millions, except per share amounts) | changes in market conditions. The inability to predict the amount and | ||||||||||||||||||||||||||
timing of these future items makes a detailed reconciliation of these | |||||||||||||||||||||||||||
Net Sales | $9,357 | (0.5)% to +1.5% | +3% to +4% | ||||||||||||||||||||||||
forward-looking financial measures impracticable. | |||||||||||||||||||||||||||
Organic Net Sales2 | $9,306* | 0% to +2% | (1)% to 0% | 2 Growth rate adjusted for the Emerald nuts business, which was | |||||||||||||||||||||||
divested on May 30, 2023 and Sovos Brands, which was acquired on | |||||||||||||||||||||||||||
Adjusted EBIT3 | $1,367* | +3% to +5% | +6.5% to +7% | ||||||||||||||||||||||||
March 12, 2024. | |||||||||||||||||||||||||||
Adjusted EPS3 | $3.00* | +3% to +5% | +2% to +3% | 3 Adjusted EBIT in fiscal 2023 included approximately $14 million and | |||||||||||||||||||||||
$3.09 to $3.15 | $3.07 to $3.10 | adjusted EPS included approximately $0.04 of litigation expenses | |||||||||||||||||||||||||
related to the Plum baby food and snacks business, which was | |||||||||||||||||||||||||||
divested on May 3, 2021. We are excluding these expenses from our | |||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | fiscal 2024 adjusted EBIT and adjusted EPS and thereafter as we | ||||||||||||||||||||||||||
do not believe that these expenses reflect our underlying operating | |||||||||||||||||||||||||||
($ millions) | performance. | ||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||
Third Quarter | |||||||||||||||||||||||||||
April 28, 2024 | Net Sales, | Impact of | Impact of | Organic | Net Sales, | Organic | |||||||||||||||||||||
As Reported | Currency | Acquisition | Net Sales | As Reported | Net Sales | ||||||||||||||||||||||
Meals & Beverages | $1,272 | $- | $(166) | $1,106 | 15% | 0% | |||||||||||||||||||||
Snacks | 1,097 | (1) | - | 1,096 | (2)% | (1)% | |||||||||||||||||||||
Total Net Sales | $2,369 | $(1) | $(166) | $2,202 | 6% | 0% | |||||||||||||||||||||
April 30, 2023 | Net Sales, | Impact of | Organic | ||||||||||||||||||||||||
As Reported | Divestiture | Net Sales | |||||||||||||||||||||||||
Meals & Beverages | $1,108 | $- | $1,108 | ||||||||||||||||||||||||
Snacks | 1,121 | (16) | 1,105 | ||||||||||||||||||||||||
Total Net Sales | $2,229 | $(16) | $2,213 | ||||||||||||||||||||||||
($ millions)
Third Quarter
April 28, 2024 | Net Sales, | Impact of | Impact of | Organic | |||||||
As Reported | Currency | Acquisition | Net Sales | ||||||||
Meals & Beverages | $1,272 | $8 | $(166) | $1,114 | |||||||
Snacks | 1,097 | (1) | - | 1,096 | |||||||
Total Net Sales | |||||||||||
$2,369 | $7 | $(166) | $2,210 | ||||||||
May 1, 2022 | Net Sales, | Impact of | Organic | |||||||
As Reported | Divestiture | Net Sales | ||||||||
Meals & Beverages | $1,131 | $- | $1,131 | |||||||
Snacks | 999 | (17) | 982 | |||||||
Total Net Sales | $2,130 | $(17) | $2,113 | |||||||
($ millions, except per share amounts) | ||||||||||
Third Quarter | ||||||||||
EBIT | ||||||||||
2024 - As Reported | $248 | |||||||||
Add: Costs associated with cost savings and optimization initiatives | 20 | |||||||||
Deduct: Commodity mark-to-market adjustments | (13) | |||||||||
Add: Accelerated amortization | 6 | |||||||||
Add: Costs associated with acquisition | 93 | |||||||||
2024 - Adjusted | $354 | |||||||||
2023 - As Reported | $254 | |||||||||
Add: Costs associated with cost savings and optimization initiatives | 33 | |||||||||
Add: Pension actuarial losses | 17 | |||||||||
Add: Commodity mark-to-market adjustments | 9 | |||||||||
2023 - Adjusted | $313 | |||||||||
% Change - Adjusted | 13% |
Two-Year CAGR
Net Sales, | Organic | |||
As Reported | Net Sales | |||
6% | (1)% | |||
5% | 6% | |||
5% | 2% | |||
Earnings | Diluted EPS** |
$133 | $0.44 |
15 | 0.05 |
- (0.03)
5 | 0.02 | |
81 | 0.27 | |
$224 | $0.75 | |
$160 | $0.53 | |
24 | 0.08 | |
13 | 0.04 |
70.02
$204$0.68
10%10%
($ millions)
Full Year
July 30, 2023 | Net Sales, | Impact of | Organic Net Sales Base for | |||
As Reported | Divestiture | FY2024 Guidance | ||||
Meals & Beverages | $4,907 | $- | $4,907 | |||
Snacks | 4,450 | (51) | 4,399 | |||
Total Net Sales | $9,357 | $(51) | $9,306 | |||
($ millions, except per share amounts)
Full Year
EBIT | Earnings | Diluted EPS | |||||
2023 | - As Reported | $1,312 | $858 | $2.85 | |||
Add: Costs associated with cost savings and optimization initiatives | 66 | 50 | 0.17 | ||||
Deduct: Pension and postretirement actuarial gains | (15) | (11) | (0.04) | ||||
Deduct: Commodity mark-to-market adjustments | (21) | (16) | (0.05) | ||||
Add: Charges associated with divestiture | 13 | 13 | 0.04 | ||||
Add: Accelerated amortization | 7 | 5 | 0.02 | ||||
Add: Costs associated with acquisition | 5 | 4 | 0.01 | ||||
2023 | - Adjusted | $1,367 | $903 | $3.00 | |||
**The sum of the individual per share amounts may not add due to rounding.
The document contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements reflect the Company's current expectations of the Company's future business or financial results. These forward-looking statements, including any statements made regarding sales, EBIT and EPS guidance, rely on a number of assumptions and estimates that could be inaccurate and which are subject to risks and uncertainties. For important information on forward-looking statements, please see our press release on our investor website at https://investor.campbellsoupcompany.com.
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Campbell Soup Company published this content on 05 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2024 11:17:10 UTC.