Campbell Soup (CPB) Plunges as Sales and Profit Decrease, Guidance Lowered Amid Rising Inflation and Supply Chain Costs
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Shares of Campbell Soup Company (NYSE: CPB) are down nearly 7% after the company reported falling sales and profit compared to a year-ago period.
The processed food and snack company posted a net income of $160 million, or 52 cents per share. Adjusted earnings for one-time gains and costs stood at 57 cents per share. The report fell short of analysts’ expectations of 66 cents of earnings per share.
Revenue came in at $1.98 billion, missing the Wall Street expectations of $2 billion.
Mark Clouse, Campbell’s President and CEO, said:
“While we recognized the third quarter would be a challenging net sales comparison to the demand surge at the onset of the COVID-19 pandemic a year ago, we faced additional headwinds. Our results were impacted by a rising inflationary environment, short-term increases in supply chain costs, and some executional pressures as we continued to advance our transformation agenda, primarily in our Snacks division. We are confident that these are all addressable, and we are taking appropriate actions, including putting pricing in place for the next fiscal year.”
“Our confidence is further strengthened by the underlying health of our brands. Nearly three-quarters of our portfolio gained or held share in the quarter, with most of our core categories having grown at higher rates than pre-pandemic levels."
As for the full-year outlook, Campbell said it expects earnings to range between $2.90 and $2.93 per share. This is lower compared to the prior guidance of $3.03 to $3.11 per share. Sales are now expected to decline 3.25% on a year-over-year basis compared to previous guidance of 3%.
As of yesterday, shares of Campbell are up 2% year-to-date, compared to the 13% surge in the S&P 500 index over the same period.
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