NASDAQ$CPB

Campbell Soup Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Campbell Soup's Q2 2023 performance showcased double-digit growth in net sales and EPS, driven by favorable pricing and strong brand performance, leading to an increased fiscal year 2023 guidance.

Campbell Soup Company reported a strong second quarter in fiscal year 2023, with double-digit increases in net sales and EPS. The company raised its full-year fiscal 2023 net sales guidance and the midpoint of adjusted EBIT and adjusted EPS guidance range, reflecting confidence in its continued performance.

  • Net Sales increased 12% and Organic Net Sales increased 13% due to favorable net price realization and continued brand strength.
  • Reported Earnings Before Interest and Taxes (EBIT) increased 8% to $350 million. Adjusted EBIT increased 14% to $362 million.
  • Reported Earnings Per Share (EPS) increased 10% to $0.77. Adjusted EPS increased 16% to $0.80.
  • Full-year fiscal 2023 net sales guidance was raised and the midpoint of adjusted EBIT and adjusted EPS guidance range was raised reflecting the continued strength of the company's performance

Headline financials

Total Revenue

$2.49B

Previous: $2.21B+12.5%
EPS (adj)

$0.80

Previous: $0.69+15.9%
Organic Net Sales Change

13.0%

Previous: -2.0%+750.0%
Gross Margin

30.5%

No prior period
Capital Expenditures

-$155M

Previous: -$129M-20.2%
Free Cash Flow

$77M

Previous: $83M-7.2%
Net Income

$232M

Previous: $212M+9.4%
Operating Income

$350M

Previous: $323M+8.4%
Gross Profit

$759M

Previous: $669M+13.5%
Cash & Equivalents

$158M

Previous: $357M-55.7%
Total Assets

$12B

Previous: $12B-0.2%
Stock-Based Comp

$16M

Previous: $17M-5.9%

Revenue & EPS history

Campbell Soup · Revenue · Quarterly

$2.49B

Q2 2023+12.5%vs Q2 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Campbell Soup · $2.49B total across 2 segments · Q2 2023

  • Meals & Beverages
    $1.41B+10.4%
  • Snacks
    $1.08B+15.3%

Forward guidance

Campbell is raising its full-year fiscal 2023 net sales outlook and raising the midpoint of its adjusted EBIT and adjusted EPS outlook from the guidance provided on December 7, 2022.

Tailwinds

  • Net Sales: +8.5% to +10%
  • Organic Net Sales: +8.5% to +10%
  • Adjusted EBIT: +4.5% to +6.5%
  • Adjusted EPS: $2.95 to $3.00
  • The higher revenue expectations reflect the strength of Campbell’s brands with price elasticities remaining favorable to historical norms and continued strong supply chain execution..

Headwinds

  • Updated adjusted EBIT and adjusted EPS guidance reflect planned investment to sustain momentum and value for consumers, as well as higher year-over-year estimated pension and post retirement headwinds.
  • Fiscal year 2023 pre-tax pension and post-retirement benefit income is now expected to be lower by approximately $45 million, or $0.12 per share, compared to the prior year.
  • This represents approximately 3.5% of adjusted EBIT growth and approximately 4% of adjusted EPS growth, a 50-basis point increase from previous estimates as a result of interim remeasurements.
  • The plans continue to be well-funded.
  • Unspecified

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.9%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.2%

Avg return

30 days after

38%

27 / 72 earnings

Positive

+12.9%

Q3 2019

Best reaction

-14.4%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.0%+5.1%
Q2 2026-7.0%-13.3%-17.2%
Q1 2026-5.2%-4.3%-11.9%
Q4 2025+7.3%+7.8%+1.6%
Q3 2025-2.0%-5.3%-8.3%
Q2 2025-2.9%+4.2%-3.8%
Q1 2025-7.7%-7.6%-9.1%
Q4 2024-0.9%+2.4%-1.6%
Q3 2024-1.5%-3.9%+2.1%
Q2 2024-2.0%+0.1%+0.8%
Q1 2024+7.6%+8.6%+8.0%
Q4 2023-2.6%-1.8%-2.1%
Q3 2023-7.6%-9.1%-10.0%
Q2 2023+0.4%+2.2%+6.4%
Q1 2023+7.7%+7.4%+7.6%
Q4 2022-2.5%-3.1%-6.5%
Q3 2022+0.9%-1.6%+4.2%
Q2 2022-1.0%+1.2%+7.5%
Q1 2022+2.6%+6.2%+11.5%
Q4 2021+2.6%+3.2%-0.5%
Q3 2021-6.9%-6.7%-7.1%
Q2 2021+1.1%+1.4%+2.4%
Q1 2021-2.0%-3.2%-2.9%
Q4 2020-9.3%-13.8%-6.9%
Q3 2020-6.2%-4.1%-5.2%
Q2 2020+10.9%+4.8%+3.4%
Q1 2020+0.1%+1.4%+1.8%
Q4 2019+4.9%+4.1%+8.2%
Q3 2019+12.9%+10.2%+9.1%
Q2 2019+9.5%+9.4%+15.9%
Q1 2019+2.8%+5.4%-2.0%
Q4 2018-1.4%-0.8%-8.4%
Q3 2018-14.4%-12.6%-5.4%
Q2 2018-3.4%-10.1%-8.6%
Q1 2018-6.3%-7.8%-2.5%
Q4 2017-9.7%-7.1%-6.8%
Q3 2017+1.0%+2.5%-3.3%
Q2 2017-5.8%-5.4%-5.4%
Q1 2017+3.2%+4.5%+9.4%
Q4 2016-4.9%-5.0%-9.9%
Q3 2016-6.4%-5.2%-2.4%
Q2 2016+2.4%
Q1 2016+5.5%
Q4 2015+0.4%
Q3 2015+1.7%
Q2 2015-1.6%
Q1 2015-0.3%
Q4 2014-3.0%
Q3 2014-2.4%
Q2 2014+5.6%
Q1 2014-7.7%
Q4 2013-3.4%
Q3 2013-3.3%
Q2 2013+3.3%
Q1 2013-1.4%
Q4 2012-1.2%
Q3 2012-2.2%
Q2 2012+3.1%
Q1 2012-7.0%
Q4 2011-0.3%
Q3 2011+0.1%
Q2 2011+1.6%
Q1 2011-0.1%
Q4 2008-1.9%
Q4 2010-1.9%
Q3 2009-0.3%
Q3 2010-0.3%
Q2 2009+0.6%
Q2 2010+0.6%
Q1 2009-0.7%
Q4 2009-0.7%
Q1 2010-0.7%

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