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Benzinga
Benzinga
Business
Shivani Kumaresan

Campbell Soup's Q2 Top-Line Misses Consensus, Expects Improvement In 2H Performance

  • Campbell Soup Company (NYSE:CPB) reported a second-quarter FY22 sales decline of 3.1% year-on-year, to $2.21 billion, missing the consensus of $2.24 billion.
  • Net sales from the Meals & Beverages segment declined 3%, and the Snacks segment fell 3%.
  • The gross margin contracted 410 basis points Y/Y to 30.3%. Adjusted EBIT of $318 million decreased 17% Y/Y.
  • The operating margin was 15.1%, and the operating income declined 17% Y/Y to $334 million.
  • Adjusted EPS of $0.69 was in line with the Street view.
  • The company held $357 million in cash and equivalents as of January 30, 2022. Cash provided by operating activities for six months totaled $766 million.
  • "As expected, our second quarter was challenging as we lapped a difficult comparison and navigated labor and supply constraints, made even tougher by the Omicron surge," said CEO Mark Clouse.
  • Outlook: Campbell reaffirmed the FY22 outlook, including an adjusted EPS outlook of $2.75 - $2.85 versus the consensus of $2.79.
  • The company expects 2H financial performance to improve Y/Y as recent pricing actions will be fully reflected in the market while supply and labor conditions improve.
  • Price Action: CPB shares are trading higher by 2.03% at $43.16 on the last check Wednesday.
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