UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended Commission File Number October 29, 2023 1-3822 CAMPBELL SOUP COMPANY New Jersey 21-0419870 State of Incorporation I.R.S. Employer Identification No. 1 Campbell Place Camden, New Jersey 08103-1799 Principal Executive Of ices Telephone Number: (856) 342-4800 Securities registered pursuant to Section 12(b) of the ...

| --- | --- | --- | --- | --- | |----------------------------------------------------------|-------|--------------|-------|----------| | (Millions) \nFair value at beginning of year | $ | 2023 \n 4 | $ | 2022 \n1 | | Gains (losses) | | 3 | | 18 | | Settlements | | (5) | | (15) | | Fair value at end of year | $ | 2 | $ | 4 | Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. There were no cash equivalents at J ...

Campbell Soup Company (NYSE:CPB) Q4 2023 Earnings Conference Call August 31, 2023 8:00 AM ET Company Participants Rebecca Gardy - Chief Investor Relations Officer Mark Clouse - President and CEO Carrie Anderson - CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Peter Galbo - Bank of America Michael Lavery - Piper Sandler Jason English - Goldman Sachs Operator Greetings, ladies and gentlemen, and welcome to the Campbell Soup Company Fourth Quarter Fiscal 2023 Earnings Conferenc ...

Campbell Soup Company (NYSE:CPB) Q3 2023 Earnings Conference Call June 7, 2023 8:00 AM ET Company Participants Rebecca Gardy - Chief Investor Relations Officer Mark Clouse - President and Chief Executive Officer Carrie Anderson - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Peter Galbo - Bank of America Merrill Lynch Michael Lavery - Piper Sandler David Palmer - Evercore ISI Pamela Kaufman - Morgan Stanley Operator Greetings, ladies and gentlemen, and w ...

BUILDING MOMENTUM Appendix 30 Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------|-------|-------------------------|-------|---------------------|-------|-------|--------------------|------------------------------------|--------------------| | Third Quarter \nApril 30, 2023 | | Net Sales, As Reported | | Impact of Currency | | | Organic Net Sales | % Change \nNet Sales, As Reported | Organic Net ...

Financial Performance - Net sales for the three months ended April 30, 2023, were $2,229 million, an increase of 4.6% compared to $2,130 million for the same period in 2022[9]. - Net earnings attributable to Campbell Soup Company for the three months ended April 30, 2023, were $160 million, a decrease of 15% from $188 million in the prior year[9]. - Net earnings for the nine months ended April 30, 2023, were $689 million, compared to $661 million for the same period in 2022, representing a 4.2% increase[18]. - Earnings per share (basic) for the three months ended April 30, 2023, were $0.54, down from $0.62 in the prior year[9]. - Total net sales for the nine-month period ended April 30, 2023, were $7.29 billion, an 11% increase compared to $6.58 billion in the prior year[125]. Assets and Liabilities - Total assets as of April 30, 2023, amounted to $12,073 million, up from $11,892 million as of July 31, 2022[14]. - Current liabilities decreased to $2,288 million as of April 30, 2023, from $2,886 million as of July 31, 2022[14]. - Long-term debt increased to $4,496 million as of April 30, 2023, compared to $3,996 million as of July 31, 2022[14]. - Cash and cash equivalents increased to $223 million as of April 30, 2023, from $109 million as of July 31, 2022[14]. Expenses and Costs - Research and development expenses for the three months ended April 30, 2023, were $24 million, up from $22 million in the same period last year[9]. - Depreciation and amortization expenses rose to $284 million, up from $251 million, reflecting a 13.1% increase[18]. - Marketing and selling expenses increased by 10% in 2023, primarily due to higher advertising and consumer promotion expenses[129]. - Administrative expenses as a percentage of sales increased to 7.5% in 2023 from 7.1% in 2022, with an 11% increase in absolute terms attributed to inflation and higher incentive compensation[116]. Shareholder Returns - Total dividends paid during the period amounted to $336 million, slightly down from $340 million in the previous year[21]. - The company purchased treasury stock worth $141 million, compared to $116 million in the same period last year, indicating a 21.6% increase[18]. - The company repurchased a total of 1,393,891 shares at an average price of $54.09 per share during the three months ended April 30, 2023[171]. - The company has authorized a strategic share repurchase program of up to $500 million, which has no expiration date[173]. Segment Performance - The Meals & Beverages segment reported net sales of $1,108 million for the three months ended April 30, 2023, compared to $1,131 million in the prior year, a decline of 2.0%[37]. - The Snacks segment achieved net sales of $1,121 million for the three months ended April 30, 2023, up from $999 million in the same period last year, an increase of 12.2%[35]. - Segment operating earnings increased 14% in 2023, with Meals & Beverages at $762 million (up 7%) and Snacks at $482 million (up 28%) compared to the previous year[132]. Restructuring and Costs - The company incurred restructuring charges of $15 million during the nine months ended April 30, 2023, compared to none in the prior year[18]. - Total pre-tax charges related to restructuring initiatives for the three months ended April 30, 2023, were $33 million, compared to $6 million in the same period last year[41]. - The company expects total estimated pre-tax costs for identified actions to be approximately $880 million to $900 million, with expected cash expenditures of $700 million to $720 million[44]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $918 million, a decrease of 16.6% from $1,101 million in the prior year[18]. - Capital expenditures were $257 million in 2023, with expectations to total approximately $360 million for the year, including capacity expansions for Snacks and Meals & Beverages[151]. Risks and Challenges - The company faces risks related to supply chain inputs, including labor and raw materials, which could impact future performance[164]. - The company is monitoring the impacts of the COVID-19 pandemic on its business and operations[164]. - The company experienced volatility in costs due to the Russia-Ukraine conflict, but it has not had a material impact on its business or financial condition[102]. - The company has identified potential disruptions to its supply chain and operations as a risk factor[164]. Tax and Regulatory - The effective tax rate for 2023 was 23.1%, slightly higher than 23.0% in 2022[124]. - The effective tax rate increased to 23.7% in 2023 from 22.2% in 2022, mainly due to favorable tax resolutions in the previous year[137]. Other Financial Metrics - The company recognized losses of $9 million in Cost of products sold associated with unrealized mark-to-market adjustments on commodity hedges in the third quarter of 2023[108]. - The total cost of products sold expense for the nine months ended April 30, 2023, was $5,028 million, an increase from $4,519 million for the same period in 2022[66].

Campbell Soup Company (NYSE:CPB) Q2 2023 Earnings Call Transcript March 8, 2023 8:00 AM ET Company Participants Rebecca Gardy - Chief Investor Relations Officer Mark Clouse - President & Chief Executive Officer Mick Beekhuizen - President, Meals & Beverages Carrie Anderson - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Peter Galbo - Bank of America Robert Moskow - Credit Suisse Operator Greetings, ladies and gentlemen, and welcome to the Campbell Soup C ...

1 Rebecca Gardy Senior Vice President Investor Relations BUILDING MOMENTUM Forward-Looking Statements the risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; the impacts of, and associated responses to, the COVID-19 pandemic on our business, suppliers, customers, consumers and employees; the company's ability to execute on and realize the expected benefits from its strategy, including growing sales in sn ...

Financial Performance - Net sales for the three months ended January 29, 2023, were $2,485 million, a 12.5% increase from $2,209 million for the same period in 2022[9] - Net earnings attributable to Campbell Soup Company for the three months ended January 29, 2023, were $232 million, up 9.4% from $212 million in the prior year[9] - Earnings per share (EPS) for the three months ended January 29, 2023, were $0.78, compared to $0.70 for the same period in 2022, reflecting an increase of 11.4%[9] - Net earnings for the six months ended January 29, 2023, were $529 million, compared to $473 million for the same period in 2022, representing an increase of 11.8%[18] - Net sales increased by 12% to $2.485 billion in the quarter, driven by inflation-driven net price realization, despite volume/mix declines[103] - Gross profit margin improved to 30.5% in 2023 from 30.3% in the prior-year quarter, primarily due to favorable net price realization and supply chain productivity improvements[103] Assets and Liabilities - Total assets as of January 29, 2023, were $11,967 million, an increase from $11,892 million as of July 31, 2022[15] - Total current liabilities decreased to $2,699 million as of January 29, 2023, from $2,886 million as of July 31, 2022[15] - The company’s long-term debt was $3,992 million as of January 29, 2023, slightly down from $3,996 million as of July 31, 2022[15] - Cash and cash equivalents increased to $158 million as of January 29, 2023, from $109 million as of July 31, 2022[15] - The balance of total equity as of January 29, 2023, was $3,601 million, an increase from $3,469 million at the end of the previous fiscal year[21] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $732 million, slightly down from $766 million in the prior year[18] - Cash and cash equivalents at the end of the period were $158 million, down from $357 million a year earlier[18] - Capital expenditures totaled $155 million in 2023, with expectations to reach approximately $325 million for the year, focusing on capacity expansion and new manufacturing lines[143] Segment Performance - The Meals & Beverages segment reported net sales of $1,408 million for the three months ended January 29, 2023, compared to $1,275 million in the same period of 2022, representing a 10.4% increase[36] - The Snacks segment achieved net sales of $1,077 million for the three months ended January 29, 2023, up from $934 million in the same period of 2022, marking a 15.3% increase[36] - Segment operating earnings increased by 19% in 2023, with Meals & Beverages and Snacks reporting increases of 17% and 24%, respectively[115][116] Expenses and Charges - The company incurred restructuring charges of $9 million during the current period, while there were no such charges in the prior year[18] - Total pre-tax charges related to restructuring initiatives for the three months ended January 29, 2023, were $14 million, compared to $5 million for the same period in 2022[42] - Marketing and selling expenses as a percentage of sales decreased to 8.7% in 2023 from 8.9% in 2022, despite a 10% increase in absolute terms due to higher advertising and consumer promotion expenses[112] - Administrative expenses as a percentage of sales decreased to 6.5% in 2023 from 6.7% in 2022, with a 10% increase in absolute terms driven by higher general administrative costs and inflation[113] Shareholder Returns - Total dividends paid during the period amounted to $226 million, compared to $228 million in the previous year[18] - The company repurchased 1.298 million shares at a cost of $66 million in 2023, with approximately $106 million remaining under the June 2021 share repurchase program[146] Debt and Financing - The company entered into a delayed draw term loan credit agreement totaling up to $500 million, scheduled to mature on November 15, 2025[52] - As of January 29, 2023, the company had $578 million of short-term borrowings due within one year, with no commercial paper borrowings[147] - The company is in compliance with covenants in its credit facilities, including a minimum consolidated interest coverage ratio of 3.25:1.00[149] Risks and Estimates - The company faces risks related to supply chain inputs, competitive responses, and the impacts of the COVID-19 pandemic on its business[153] - The company has significant accounting estimates that could differ from actual results, as described in its 2022 Annual Report[150]

Financial Data and Key Metrics Changes - Organic net sales increased 15% to $2.6 billion, driven by inflation-driven pricing and strong consumer demand [11][41] - Adjusted EBIT rose 15%, reflecting higher adjusted gross profit, partially offset by increased marketing and selling expenses [13][41] - Adjusted earnings per share were $1.02, also up 15%, supported by lower weighted average diluted shares [14][41] Business Line Data and Key Metrics Changes - Meals & Beverages division reported and organic net sales growth of 15%, with dollar consumption growing 8% year-over-year [16][56] - Snacks division also saw a 15% increase in reported and organic net sales, driven by strong performance in power brands [58][29] - U.S. soup net sales grew 11%, with positive dollar share growth in key segments despite competitive pressures [21][22] Market Data and Key Metrics Changes - Dollar consumption was up 10% year-over-year and 21% compared to three years ago, indicating strong market demand [12] - The foodservice business experienced a significant recovery, with growth of approximately 45% in the quarter [88][89] - Retail inventory recovery contributed to improved service levels, allowing for better supply chain execution [17][12] Company Strategy and Development Direction - The company is focused on maintaining brand relevance and consumer value amidst inflationary pressures [9][10] - There is a strategic emphasis on innovation and marketing to support brand growth and consumer engagement [32][38] - The goal remains to build a $1 billion sauce business, with ongoing exploration of new opportunities in the sauces category [25][110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the strength of the brands and supply chain execution [10][38] - The company raised its full-year guidance, expecting net sales growth of 7% to 9% and adjusted EBIT growth of 2.5% to 6.5% [64][65] - Management highlighted the importance of navigating inflation through targeted pricing and cost-saving initiatives [49][50] Other Important Information - The company upgraded its credit rating to BBB with a stable outlook [62] - A new renewable power purchase agreement was established to support sustainability goals [63] - Recent management changes were announced, with Mick Beekhuizen appointed as President of Meals & Beverages [39][40] Q&A Session Summary Question: Expectations for gross margins in the upcoming quarters - Management indicated that Q1 gross margins were better than expected due to strong top-line performance and effective supply chain execution, but cautioned about potential margin pressures in the future [67][70][74] Question: Competitive pricing dynamics in the soup category - Management noted that while competitors are aggressive, their pricing strategy remains balanced and focused on maintaining price gaps [76][80] Question: Inventory replenishment and shipment expectations - Management confirmed they are largely caught up on inventory replenishment and expect sales to align more closely with consumption moving forward [82][83] Question: Inflation dynamics and pricing contributions - Management explained that inflation remains in the low teens, with expectations for moderation in the second half of the year [92][94] Question: Pricing discussions with retailers - Management described ongoing conversations with retailers as constructive, focusing on transparency and rationalizing pricing actions based on cost increases [98][100] Question: Update on snack division margin targets - Management remains confident in achieving the 17% margin target for snacks by 2025, despite current environmental challenges [105][108] Question: Potential new sauce brand developments - Management continues to explore opportunities for new sauce brands, both organically and through acquisitions, to enhance their portfolio [109][110]