Campbell Soup(US:CPB)2023-06-06 16:00Financial 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].