On September 1st Campbell Soup Company (CPB) reported on the fourth quarter and Fiscal 2022 ending July 31st. The Company is a bellwether for packaged foods, beverages and snacks subject to pressure from grocery chains, competition and inflation in ingredients, labor and transport. For the period, net earnings were $96 million on sales of $1,987 million with a diluted EPS of $0.32. For the fourth quarter of Fiscal 2021 ending Augst 1st, Campbell Soup Company earned $288 million on net sales of $1,873 million with a diluted EPS of $0.95.
For FY 2022, net earnings were $757 million on sales of $8,562 million with a diluted EPS of $2.51. In comparison for Fiscal 2021 ending August 1st, Campbell Soup Company earned $1,002 million on net sales of $8,476 million with a diluted EPS of $3.29.
Gross margin declined from 31.3 percent in the fourth quarter of FY 2022 to 28.7 percent for the most recent quarter denoting inflation in the price of ingredients and pressure on unit revenue.
Of the fourth quarter revenue, 47 percent was derived from the Meals and Beverages Segment and the remainder from the Snacks Segment. Meals and Beverages contributed 53 percent of operating earnings, down 18 percent from the corresponding quarter in 2021 with 46 percent from the Snacks Segment, down 3 percent from the fourth quarter of 2021.
In commenting on results Mark Clouse, President and CEO, stated “I'm proud of our team for delivering full-year adjusted EPS at the high end of our original fiscal year 2022 guidance range, despite the volatile environment,” He added “During fiscal 2022, we demonstrated a significant step up in execution across the company with improved supply chain performance and effective revenue management to counter inflation. Our solid foundation and momentum will serve us well in fiscal 2023 as we continue to make progress on unlocking Campbell's full growth potential.”
Guidance for FY 2023 included a 5 percent increase in net sales and a diluted EPS over a range of $2.88 to $ 2.95
On July 31st, 2021 Campbell Soup Company posted total assets of $11,892 million including intangibles of $7,177. Long- term debt was $3,996 million against a market capitalization of $15,240 million and has traded over the past 52 weeks in a range of $39.76 to $51.94 with a 50-day moving average of $49.37. CPB trades with a forward P/E of 17.3 and has a beta of 0.4. Trailing 12-month operating margin was 16.6 percent and profit margin 11.2 percent. The return on assets was 7.4 percent and on equity, 29.7 percent.
Approximately 36 percent of equity is held by insiders with ibstitutions holding 53 percent with 7 percent of the float short.
On August 31st CPB closed at $50.53 but opened on September 1st, post-release at $47.66.