Vending

Campbell Soup Q1 2024 sales, earnings dip

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December 7, 2023

Campbell Soup Co. reported lower sales and earnings for Q1 2024 against the prior year period and reaffirmed its full year 2024 guidance. Highlights include:

• Net sales fell 2% from $2.575 billion in Q1 2023 to $2.52 billion in the quarter ending Oct. 30, 2023.
• Net earnings fell from $297 million to $234 million in the comparative quarters.
• Diluted EPS fell 21% from 99 cents to 78 cents on a reported basis and 11% from $1.02 to 91 cents on an adjusted basis.
• Meals and beverages net sales decreased 4% and organic net sales decreased 3% as declines in U.S. retail products, primarily declines in U.S. soup and beverages, were partially offset by an increase in foodservice sales.
• Snacks net sales decreased 1%. Excluding the impact from the divestiture of the Emerald nuts business, organic net sales increased 1% driven by sales of its eight power brands, which were up 5%. Sales growth was driven by increases in cookies and crackers, primarily Lance sandwich crackers and Goldfish crackers, partially offset by declines in sales of third-party partner brands.

Shares traded today at $43.17 against a 52-week range of $37.94 to $57.78.

The company declared a 37 cents per share dividend payable on Jan. 29 to shareholders of record on Jan. 4.

The $2.52 billion in quarterly revenue was in line with analyst expectations while the non-GAAP EPS of 91 cents beat analyst expectations by 3 cents, according to Seeking Alpha.

"Our first-quarter results were in line with our expectations, as we continue to effectively navigate the current consumer landscape, while lapping 15% growth rates from a year ago," Mark Clouse, president and CEO, said in the press release. "As a result, we are confident in reaffirming our full-year guidance. Lastly, we remain excited about adding the Sovos Brands portfolio and expect to close the transaction in calendar year 2024."

Th company expects full year net sales to range from a 0.5% loss to a 15% gain with adjusted EPS to range from 3% ($3.09) to 5% ($3.15).