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CPB NYSE· Campbell Soup Company
Earnings report Q4 2023

CPB Reports 2% Decrease in Net Sales in Latest Quarter

Segments of revenue

In the latest quarter, CPB reported a 2% decrease in net sales, amounting to $2.518 billion. This decline followed a significant 15% increase in net sales in the prior year. The decrease in net sales was primarily driven by volume/mix declines, which were partially offset by net price realization. However, when considering a two-year compounded annual growth rate (CAGR), net sales increased by approximately 6%.

Strengths

Despite the decrease in net sales, CPB demonstrated several strengths in its financial performance. The company was able to achieve favorable net price realization and supply chain productivity improvements, which partially offset the unfavorable volume/mix declines. Additionally, CPB's two-year CAGR growth of approximately 6% indicates a positive trend in its net sales.

Challenges

CPB faced challenges in its latest quarter, particularly in terms of gross profit. The gross profit, as a percentage of sales, decreased from 32.4% in the prior-year quarter to 31.3% in 2024. This decrease was primarily attributed to higher cost inflation and other supply chain costs, as well as unfavorable volume/mix. These challenges impacted the company's profitability and overall financial performance.

Noteworthy

It is worth noting that CPB's earnings per share decreased from $.99 in the prior year to $.78 in 2024. The current quarter included expenses of $.13 per share, while the prior-year quarter included expenses of $.03 per share from items impacting comparability. These expenses contributed to the decline in earnings per share.

Summary

CPB faced a 2% decrease in net sales in the latest quarter, primarily driven by volume/mix declines. However, the company demonstrated strengths in achieving favorable net price realization and supply chain productivity improvements. CPB's two-year CAGR growth of approximately 6% indicates a positive trend in net sales. Despite these strengths, CPB faced challenges in gross profit due to higher costs and unfavorable volume/mix. The decrease in earnings per share also impacted the company's financial performance. Overall, CPB's latest quarter performance reflects a mixed outcome with both strengths and challenges.

Source documents

Form 10-Q  filed on Dec 06, 2023
115 pages scanned

Reference data

Company financials Q4 revenue 2.46B
Analyst estimates Q4 EPS missed by -8.73%
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