Campbell Soup Company's Net Sales Decline 2% in Latest Quarter
Segments of revenue
In the latest quarter, Campbell Soup Company reported net sales of $2.518 billion, representing a 2% decrease compared to the same quarter last year. The company's Meals & Beverages segment generated $1.404 billion in sales, a 4% decline from the prior year. Within this segment, U.S. retail products, including soup and beverages, experienced declines, partially offset by gains in foodservice. The Snacks segment, on the other hand, saw sales of $1.114 billion, a slight 1% decrease from the previous year.
Despite the overall decline in net sales, Campbell Soup Company has shown a two-year compounded annual growth rate (CAGR) of approximately 6%, indicating a positive long-term trend. The company's management attributes the decrease in net sales to volume/mix declines, which were partially offset by favorable net price realization. Additionally, Campbell Soup Company has implemented supply chain productivity improvements, which have helped mitigate some of the higher cost inflation and other supply chain costs.
The 2% decline in net sales reflects the challenges faced by Campbell Soup Company in the latest quarter. The company's Meals & Beverages segment, particularly U.S. retail products, experienced declines, which impacted overall revenue. Additionally, the Snacks segment saw a slight decrease in sales, further contributing to the decline in net sales.
It is worth noting that the decrease in gross profit, as a percent of sales, from 32.4% in the prior-year quarter to 31.3% in the current quarter. This decrease can be attributed to higher cost inflation and other supply chain costs, as well as unfavorable volume/mix. However, the company's favorable net price realization and supply chain productivity improvements partially offset these factors.
Campbell Soup Company's net sales declined 2% in the latest quarter, primarily driven by declines in the Meals & Beverages segment, particularly U.S. retail products. The company's Snacks segment also saw a slight decrease in sales. However, the company has shown a positive two-year compounded annual growth rate (CAGR) of approximately 6%. Despite the challenges faced, Campbell Soup Company has implemented supply chain productivity improvements and achieved favorable net price realization.