Vending

Pandemic, labor and supply issues crimp Campbell Soup’s Q2 and HY 2022 results

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March 9, 2022

Campbell Soup Co. took a hit for its Q2 2022 and first half-year results due to ongoing COVID, labor and supply chain issues, according to an earnings release. Highlights include:

• First half-net sales decreased 3% from $2.79 billion to $2.21 billion. Organic net sales, which exclude the impact from the sale of the Plum baby food and snacks business, decreased 3% driven by volume declines primarily due to supply constraints, partly offset by favorable price and sales allowances.
• Earnings before interest and taxes fell 19% from $401 million to $323 million on a reported basis in the comparative quarters, and 17% from $382 million to $318 million on an adjusted basis.
• Diluted earnings per share fell 13% from 80 cents to 79 cents, while adjusted EPS fell 16% from 82 cents to 69 cents.
• Net sales for snacks in the quarter, both reported and organic, decreased 3% while sales of power brands were up 1%. Segment sales decreased due to declines in non-core businesses and in certain salty snacks, primarily Late July snacks, partially offset by gains in Goldfish crackers.
• Net sales for meals and beverages in the quarter decreased 3%. Organic net sales, which exclude the impact from the sale of the Plum baby food and snacks business, declined 2% driven by declines in U.S. retail, including U.S. soup and Campbell's pasta, as well as in Canada, partially offset by gains in foodservice.
• For the six month period, net sales fell 4% from $4.61 billion in 2021 to $4.445 billion in 2022.
• Earnings before interest and taxes fell 19% $862 million to $699 million on a reported basis for the first six months, and 16% from $839 million to $707 million on an adjusted basis.
• Diluted earnings per share fell 14% from $1.82 to $1.56 for the first six months, and 13% from $1.82 to $1.58 on an adjusted basis.

Shares traded today at $43.34 against a 52-week range of $39.75-$52.23.

The $2.21 billion in quarterly revenue missed analyst expectations by $40 million, while the non-GAAP EPS of 69 cents beat expectations by one cent, according to Seeking Alpha.

"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," Mark Clouse, president and CEO, said in the press release. "However, heading into the second half of the fiscal year, we are seeing labor availability and service levels improve, better mitigation of inflation with pricing, and strong levels of demand all underpinning our confidence in our delivery of full-year guidance."

For an update on how the coronavirus pandemic affected convenience services, click here.