Campbell Soup Company CPB reported fourth-quarter FY23 sales growth of 4.2% year-on-year to $2.068 billion, marginally beating the analyst consensus of $2.06 billion. Organic net sales rose 5%.
Net sales from the Meals & Beverages segment remained flat, and the Snacks segment climbed 8%.
Gross margin expanded 300 basis points Y/Y to 31.7%. Adjusted EBIT of $242 million decreased by 10% Y/Y.
Total costs and expenses decreased 1.2% to $1.79 billion.
Adjusted EPS of $0.50 was in line with the analyst consensus.
The company held $189 million in cash and equivalents as of July 30, 2023. Operating cash flow for twelve months totaled $1.14 billion.
"We expect accelerated growth and margin improvement in Snacks, and sequential and steady improvement in Meals & Beverages throughout the year, and with the pending strategic acquisition of Sovos Brands, Campbell will be one of the most dependable, growth-oriented names in food," said President and CEO Mark Clouse.
The company said it remains on track to deliver savings of $1 billion by the end of fiscal 2025.
Outlook: Campbell expects FY24 adjusted EPS of $3.09-$3.15 versus the consensus of $3.09.
The company sees FY24 sales to be down 0.5% to up 1.5%.
Price Action: CPB shares are trading higher by 3.74% at $43.53 in premarket on the last check Thursday.
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