Campbell Soup Co · Q3 2022 earnings

Briefing

Reported a strong recovery with sales growth and improved supply chain execution.

Campbell Soup Company reported a 7% increase in net sales and a 9% increase in organic net sales for the third quarter of fiscal 2022. The company raises full-year fiscal 2022 net sales guidance reflecting strong year-to-date performance. Reaffirms Adjusted Earnings Before Interest and Taxes (EBIT) and Adjusted EPS guidance given continued expected higher inflation.

• EPS from Continuing Operations increased 15% to $0.62. Adjusted EPS increased 37% to $0.70.
• Net Sales increased 7% and Organic Net Sales increased 9% to $2.1 billion.
• Demand for Campbell's products remained strong with consumption up 4% compared to prior year and up 14% on a three-year basis.
• Raises full-year fiscal 2022 net sales guidance reflecting strong year-to-date performance.

Headline financials

Revenue & EPS history

Campbell is raising its full-year fiscal 2022 net sales guidance to reflect year-to-date performance, expectations of continued strong demand for its portfolio of trusted brands, and limited price elasticities amidst a heightened inflationary environment, as well as continued supply recovery and improved service levels. Although the company’s third quarter adjusted EBIT margin improved relative to prior year, the company expects core inflation to exceed prior estimates for the balance of the year. The company expects margin pressure for full-year fiscal 2022 relative to the prior year despite ongoing mitigating actions such as net price realization, productivity improvements and cost savings initiatives. Accordingly, adjusted EBIT and adjusted EPS performance are expected to be consistent with the guidance provided on March 9, 2022.