Campbell Soup Co (NYSE:CPB) reported third-quarter FY23 net sales and organic sales growth of 5% year-over-year to $2.229 billion, missing the consensus of $2.23 billion.
Net sales from the Meals & Beverages segment declined 2% YoY, and the Snacks segment climbed 12%.
The gross margin contracted by 120 bps to 30%, and the adjusted margin contracted by 60 bps to 30.9%. Adjusted EBIT was $313 million (-2% Y/Y), and the margin was 14%, down by 103 bps.
Adjusted EPS was $0.68 (-3% Y/Y), beating the consensus of $0.65.
Segment Operating Earning for Meals & Beverages was $182 million (-17% Y/Y), and Snacks was $179 million (+41% Y/Y).
The company held $223 million in cash and equivalents as of April 30, 2023. Operating cash flow for nine months totaled $918 million, compared to $1.1 billion a year ago.
The company stated that the recent Emerald nuts business divestiture would not materially impact FY23 adjusted results.
Campbell said it remains on track to deliver savings of $1 billion by the end of fiscal 2025.
FY23 Outlook reaffirmed: Campbell sees net sales growth of 8.5%-10%; adjusted EPS of $2.95-$3.00 versus consensus of $3.01. It sees Adjusted EBIT growth of 4.5%-6.5%.
Price Action: CPB shares are trading lower by 5.73% at $47.69 on the last check Wednesday.
