Campbell (CPB) Q1 Profit, Sales Decline Ahead of 'Transition Year'
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Price: $46.05 --0%
EPS Growth %: +10.7%
Financial Fact:
Weighted average shares outstanding - assuming dilution: 316M
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EPS Growth %: +10.7%
Financial Fact:
Weighted average shares outstanding - assuming dilution: 316M
Today's EPS Names:
REDF, REX, SNPS, More
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Shares of Campbell Soup Company (NYSE: CPB) are mostly unchanged Tuesday morning following results for the first quarter of fiscal 2012.
Total sales for the quarter fell roughly 1 percent from the same quarter last year to $2.161 billion. This was slightly lower than the Street’s consensus of $2.21 billion. Total costs and expenses also fell by 1 percent to $1.745 billion.
Net earnings fell 5 percent year over year to $265 million. On a per share basis, earnings were flat at $0.82. The Street was forecasting earnings of $0.79 per share for the quarter.
Sales for U.S. simple meals were down 3 percent to $874 million while U.S. soup sales declined 4 percent on lower volumes. Sales for U.S. beverages were down 3 percent to $198 million.
Sales for Global Baking and Snacking were $568 million, an increase of 4 percent from a year ago. Sales for International Simple Meals and Beverages were also down 3 percent to $359 million.
“In U.S. Beverages, we faced increased inflation, a weaker category and intensified competition, with new entrants in both 100-percent vegetable juice and fruit and vegetable blends. We stepped up our advertising near the end of October, when our new ‘V8’campaign began airing. Although our consumption growth outpaced the category and our market share increased, this required significant investment to protect our business,” commented Denise Morrison, Campbell’s President and CEO.
Management reaffirmed its fiscal 2012 guidance of 0 to 2 percent sales growth and earnings of $2.45-$2.42 per share. The company noted again that 2012 was going to be the year of transition and investments. Campbell's closed the quarter with $285 million in cash and cash equivalents, down 2 percent year over year.
Mr. Morrison stated, “As we’ve previously stated, fiscal 2012 will be a year of investment as we establish the foundation for the next era of profitable growth at Campbell.
"While it is early in this transition year, our efforts to stabilize U.S. Soup profitability are on track. As planned, we raised prices in response to inflation and reduced ineffective marketing spending, which led to improved profits despite anticipated volume declines. Specifically, we engaged in significantly less promotional spending. We also commenced our U.S. Soup advertising later in the quarter to coincide with the start of soup season. This is part of a planned, full-year timing shift of our media dollars into the soup season where they are most effective."
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Total sales for the quarter fell roughly 1 percent from the same quarter last year to $2.161 billion. This was slightly lower than the Street’s consensus of $2.21 billion. Total costs and expenses also fell by 1 percent to $1.745 billion.
Net earnings fell 5 percent year over year to $265 million. On a per share basis, earnings were flat at $0.82. The Street was forecasting earnings of $0.79 per share for the quarter.
Sales for U.S. simple meals were down 3 percent to $874 million while U.S. soup sales declined 4 percent on lower volumes. Sales for U.S. beverages were down 3 percent to $198 million.
Sales for Global Baking and Snacking were $568 million, an increase of 4 percent from a year ago. Sales for International Simple Meals and Beverages were also down 3 percent to $359 million.
“In U.S. Beverages, we faced increased inflation, a weaker category and intensified competition, with new entrants in both 100-percent vegetable juice and fruit and vegetable blends. We stepped up our advertising near the end of October, when our new ‘V8’campaign began airing. Although our consumption growth outpaced the category and our market share increased, this required significant investment to protect our business,” commented Denise Morrison, Campbell’s President and CEO.
Management reaffirmed its fiscal 2012 guidance of 0 to 2 percent sales growth and earnings of $2.45-$2.42 per share. The company noted again that 2012 was going to be the year of transition and investments. Campbell's closed the quarter with $285 million in cash and cash equivalents, down 2 percent year over year.
Mr. Morrison stated, “As we’ve previously stated, fiscal 2012 will be a year of investment as we establish the foundation for the next era of profitable growth at Campbell.
"While it is early in this transition year, our efforts to stabilize U.S. Soup profitability are on track. As planned, we raised prices in response to inflation and reduced ineffective marketing spending, which led to improved profits despite anticipated volume declines. Specifically, we engaged in significantly less promotional spending. We also commenced our U.S. Soup advertising later in the quarter to coincide with the start of soup season. This is part of a planned, full-year timing shift of our media dollars into the soup season where they are most effective."
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