Campbell Soup Company (NYSE:CPB) lost ground Wednesday on quarterly numbers.
The food giant declared Earnings per Share (EPS) from Continuing Operations of $0.80 increased 43%. Adjusted EPS of $0.84 increased 17%.
Earnings Before Interest and Taxes (EBIT) increased 15% to $401 million. Adjusted EBIT increased 8% to $393 million.
Net sales, both reported and organic, increased 5% to $2.28 billion driven by gains in both Meals & Beverages and Snacks. The growth was driven by a 4% increase in volume and mix reflecting heightened demand as at-home food consumption remained elevated as a result of the COVID-19 pandemic, partly offset by declines in foodservice and in partner brands within the Snyder's-Lance portfolio.
Lower promotional spending net of price and sales allowances contributed a 1% increase to net sales growth.
Gross margin increased from 34.3% to 34.4%. Excluding items impacting comparability, adjusted gross margin decreased 10 basis points to 34.3% as cost inflation, other operational costs and continued COVID-19 related costs were partially offset by the benefits of supply chain productivity improvements and cost savings initiatives, as well as moderated promotional spending.
Marketing and selling expenses decreased 2% to $232 million.
Said CEO Mark Clouse, "We delivered another quarter of strong results, with top-line growth in both segments—partly tempered by foodservice and supply constraints caused by COVID-19—as well as continued growth in EBIT and EPS. In addition, nearly 75% of our brands grew or held share which was an important goal for the quarter."
CPB shares dropped $1.55, or 3.3%, to $45.38.
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