Campbell Soup Company (NYSE:CPB) shares perked on the release of first-quarter numbers Wednesday.
The Camden, New Jersey-based food company reported that net sales topped $2.183 billion in the quarter, down slightly from the $2.202 billion in the prior-year quarter. Earnings Before Interest, Taxation, Depreciation and Amortization (EBITDA) proved to be $392 million, better than the $371 million figure in the prior-year.
Gross margin increased from 33.0% to 33.8%. Excluding items impacting comparability in the prior year, adjusted gross margin increased 0.3 percentage points driven primarily by productivity improvements, the benefits from cost savings initiatives, and the benefit of recent pricing actions, offset partly by cost inflation and higher promotional spending.
The company reported EPS of $0.56. Excluding items impacting comparability, adjusted EPS increased 10% to $0.78 per share, reflecting the increase in adjusted EBIT and lower interest expense.
CEO Mark Clouse stated, "Our performance to start the new fiscal year was largely in-line with our expectations and builds upon the solid foundation we set in fiscal 2019. I was especially pleased that our in-market consumption grew more than 1% in measured channels.
"Additionally, we grew soup share for the first time in 10 quarters, one of the early signs of progress in our three-year journey to revitalize this business."
In October, Campbell completed the sale of the European chips business. The results of this business up through the time of sale have been reported as continuing operations within the Snacks segment. As a result, the outlook for fiscal 2020 has been updated to reflect a two-point negative impact on net sales for the remainder of the year.
Shares picked up 57 cents, or 1.2%, to $48.15, in the first few minutes of trading on Wednesday.
