Categories AlphaGraphs, Consumer, Earnings

Campbell Soup slips to a loss in Q4 but beats estimates

Campbell Soup Company (NYSE: CPB) slipped to a loss in the fourth quarter from a profit last year, due to higher costs and expenses. However, the results exceeded analysts’ expectations.

Net loss was $8 million or $0.03 per share compared to a profit of $94 million or $0.31 per share in the previous year quarter. Adjusted earnings soared by 96% to $0.49 per share and the adjusted combined EPS, which includes continuing operations and Campbell International, grew by 14% to $0.50.

Net sales rose by 2% to $1.78 billion, driven by gains in Snacks, as well as Meals & Beverages. The combined total net sales increased by 2% to $2.02 billion.

Campbell Soup slips to a loss in Q4 but beats estimates

Looking ahead into fiscal 2020, the company expects net sales growth in the range of 1% to 3% and adjusted earnings to increase by 9% to 11% year-over-year to the range of $2.50 to $2.55 per share. Adjusted EBIT is predicted to be in the range of 2% to 4%.

On July 12, 2019, the company agreed to sell the Kelsen Group and on August 2, that it agreed to sell Arnott’s and certain of Campbell’s International operations. These transactions are expected to close in the first half of fiscal 2020. This portfolio of businesses referred to as Campbell International, which was previously included in the Global Biscuits and Snacks segment, is now reported as discontinued operations along with Campbell Fresh.

Effective as of the fourth quarter of fiscal 2019, Campbell is reporting operating results in two segments: Meals & Beverages, and Snacks. The expected net proceeds of about $3 billion from the divestitures of Campbell Fresh and Campbell International are being used to reduce debt.

Read: Will Tesla stock continue to fall on tariff uncertainty

In the fourth quarter, Campbell achieved $45 million in savings under its multi-year cost savings program, inclusive of Snyder’s-Lance synergies, bringing total program-to-date savings to $560 million. As previously announced, Campbell is targeting cumulative annualized savings of $850 million by the end of fiscal 2022.

For the fourth quarter, sales from Meals & Beverages were comparable to the prior year. Organic sales rose 1% reflecting solid performance in US soup, Prego pasta sauces, and Pace Mexican sauces. Sales of US soup increased 3% as gains in ready-to-serve and condensed soups were offset by declines in broth.

Sales from Snacks rose by 3% and organic sales increased by 4%. This performance reflects continued momentum in Pepperidge Farm bakery products, Kettle Brand potato chips, Snack Factory Pretzel Crisps, and Late July snacks, as well as gains in Goldfish crackers, as the company laps the negative impact of the voluntary recall on July 2018.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top