Categories Analysis, Consumer

Key takeaways from Campbell Soup’s (CPB) Q3 earnings report

Adjusted EPS is expected to range between $2.95-3.00 in FY2023

Shares of Campbell Soup Company (NYSE: CPB) were down 7% on Wednesday, following the announcement of the company’s third quarter 2023 earnings results. Although earnings beat projections and revenue came in line with estimates, the full-year earnings outlook fell short of expectations. The stock has dropped 17% year-to-date. Here’s a look at the key takeaways from the earnings report.

Quarterly performance

In Q3 2023, Campbell Soup’s net sales increased 5% to $2.23 billion compared to the same period last year, matching expectations. The top line benefited from inflation-driven price increases but took a hit from declines in volume. On a reported basis, EPS decreased 15% year-over-year to $0.53. Adjusted EPS fell 3% to $0.68 but beat estimates of $0.64.

Category performance

During the third quarter, Campbell Soup saw sales in the Meals & Beverages segment drop by 2% on a reported basis and 1% on an organic basis, mainly due to declines in the US soup category. Sales in US soup fell 11% in Q3.

Campbell’s Chunky soup saw a decline in dollar share versus the previous year whereas Pacific Foods managed to grow its dollar share. Pacific Foods saw dollar consumption grow by 24% in Q3 versus the year-ago period.

Within the Snacks segment, reported and organic sales increased 12%, driven by a 16% growth in power brands. The top line benefited from gains in cookies and crackers as well as salty snacks. Dollar consumption in this segment grew 15% versus the previous year.

The company saw strength in brands such as Goldfish crackers, Lance sandwich crackers, Kettle Brand potato chips, and Snyder’s of Hanover pretzels. Goldfish and Lance saw dollar consumption grow by 21% and 30%, respectively while Kettle Brand saw a 10% growth in Q3. Snyder’s grew dollar consumption by 13% during the quarter.

Last month, Campbell announced the sale of its Emerald nuts business to Flagstone Foods. The divestiture of this business, which was acquired as part of the Snyder’s-Lance acquisition, is not expected to have a material impact on FY2023 results.


For fiscal year 2023, Campbell Soup expects both net sales and organic sales to grow 8.5-10% from the previous year. Adjusted EPS is expected to range between $2.95-3.00, which would reflect a growth of 3.5-5% versus the prior year. However, this is lower than analysts’ estimates of $3.01.

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