Campbell Soup(US:CPB)2023-03-07 16:00Financial 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]