Campbell Soup Company (NYSE:CPB) settled Wednesday on third-quarter figures
The Camden, New Jersey-based food giant reported Wednesday $2.238 billion in net sales, a 15% hike over the prior-year quarter. Organic net sales, which exclude the impact from the divested European chips business, increased 17% from the prior year driven by favorable volume in both Meals & Beverages and Snacks reflecting increased demand for at-home food consumption with the stay-at-home mandate.
Earnings before interest and taxes increased 11% to $273 million, with diluted earnings per share at 55 cents, compared to 41 in the prior-year quarter. Excluding items impacting comparability, adjusted EBIT increased 31% to $386 million as higher sales volumes and improved gross margin performance were offset partly by increased marketing investment.
Mark Clouse, Campbell’s President and CEO, stated, "Since the onset of the COVID-19 pandemic, we have simplified our mission to keep our people safe, while meeting the urgent need for food and supporting the communities in which we operate.
"I am incredibly proud of how the entire Campbell organization has mobilized and want to thank our team, especially those on the front lines, for continuing to step up to ensure our food is readily available across North America."
As a result of the third quarter, in which performance was significantly impacted by the increase in demand of the company's products amidst the COVID-19 pandemic, and its current outlook for continued demand for Campbell products, CPB is raising its fiscal 2020 outlook for net sales (to $8.107 billion) and adjusted EBIT to $1.266 billion.
Shares fell $1.65, or 3.2%, to $50.35.
