- Net Sales increased 7%; Organic Net Sales increased 8%
reflecting continued elevated demand for Campbell's brands.
- Earnings Before Interest and Taxes (EBIT) increased 45% to $461
million. Adjusted EBIT increased 18% to $463 million.
- Earnings Per Share (EPS) from Continuing Operations of $1.02
increased 82%. Adjusted EPS of $1.02 increased 31%.
- Increases quarterly dividend by 6% to $0.37 per share.
- Provides guidance for the second quarter of fiscal 2021.
Campbell Soup Company (NYSE:CPB) today reported results
for its first-quarter fiscal 2021 and announced a 6% increase to
its quarterly dividend.
Continuing Operations
Three Months Ended
($ in millions, except per share)
Nov. 1, 2020
Oct. 27, 2019
% Change
Net Sales
As Reported (GAAP)
$
2,340
$
2,183
7
%
Organic
8
%
Earnings Before Interest and Taxes
(EBIT)
As Reported (GAAP)
$
461
$
317
45
%
Adjusted
$
463
$
392
18
%
Diluted Earnings Per Share
As Reported (GAAP)
$
1.02
$
0.56
82
%
Adjusted
$
1.02
$
0.78
31
%
Note: A detailed reconciliation of the
reported (GAAP) financial information to the adjusted financial
information is included at the end of this news release.
CEO Comments
Mark Clouse, Campbell’s President and CEO, stated, “Fiscal 2021
is off to a strong start with first-quarter sales growth across
both divisions and double-digit gains in EBIT and EPS. Our Meals
& Beverages division continued to drive impressive sales and
margin growth as we positioned our brands to align with macro
consumer trends, and retailers rebuilt inventory for the holidays
and the heart of soup season. Snacks continued to deliver strong
results while increasing capacity in key power brands. We continue
to build a high-performing Snacks business with differentiated
brands and improving margins.”
Clouse continued: “The Board approved a 6% increase in our
quarterly dividend, reflecting the company’s strong earnings
performance, cash flows and increasing confidence in our long-term
growth prospects, as well as our continued commitment to
shareholder returns.”
Items Impacting Comparability for Continuing
Operations
The table below presents a summary of items impacting
comparability in each period. A detailed reconciliation of the
reported (GAAP) financial information to the adjusted information
is included at the end of this news release.
Diluted Earnings Per
Share
Three Months Ended
Nov. 1, 2020
Oct. 27, 2019
As Reported (GAAP)
$
1.02
$
0.56
Restructuring charges, implementation
costs and other related costs associated with cost savings
initiatives
$
0.02
$
0.03
Net pension settlement gains
$
(0.01
)
$
—
Charges associated with divestiture
$
—
$
0.20
Adjusted*
$
1.02
$
0.78
*Numbers may not add due to rounding.
First-Quarter Results from Continuing Operations
Net sales increased 7% to $2.34 billion driven by gains in both
Meals & Beverages and Snacks. Organic net sales grew 8% driven
by a 6% increase in volume and mix and a 2% increase from lower
levels of promotional spending. The volume increase reflected
heightened demand as at-home food consumption remained elevated as
a result of the COVID-19 pandemic as well as improved retailer soup
inventories. Organic net sales exclude the impact from the sale of
the European chips business in fiscal 2020.
Gross margin increased from 33.8% to 34.7%. Excluding items
impacting comparability in the current year, adjusted gross margin
increased 100 basis points to 34.8% driven primarily by moderated
promotional spending and favorable mix, offset partly by slightly
higher net supply chain costs as productivity improvements and
improved operating leverage were more than offset by cost
inflation, other operational costs and COVID-19 related costs.
Marketing and selling expenses increased 1% to $208 million,
driven primarily by increased investments in advertising and
consumer promotion, partly offset by the benefits of cost savings
initiatives, lower marketing overhead and lower selling expenses.
Administrative expenses increased 5% to $141 million. Excluding
items impacting comparability, adjusted administrative expenses
increased by $11 million, or 9%, driven primarily by higher benefit
costs, general administrative costs and inflation, partially offset
by the benefits of cost savings initiatives.
Other income was $18 million compared to other expenses of $56
million in the prior year. Excluding items impacting comparability,
adjusted other income was $14 million compared to $8 million in the
prior year.
As reported EBIT increased 45% to $461 million. Excluding items
impacting comparability, adjusted EBIT increased 18% to $463
million primarily due to higher sales volumes, improved gross
margin performance and lower selling expenses, offset partly by
increased marketing investment and higher adjusted administrative
expenses.
Net interest expense was $55 million compared to $80 million in
the prior year reflecting lower levels of debt. Taxes increased to
$97 million compared to $68 million in the prior year. Excluding
items impacting comparability, the adjusted tax rate decreased 20
basis points to 23.8% from 24.0%.
As reported and adjusted EPS from continuing operations were
$1.02 per share. Excluding items impacting comparability, adjusted
EPS from continuing operations increased 31% reflecting an increase
in adjusted EBIT and lower net interest expense.
Cash flows from operations of $180 million were comparable to
the prior year. Capital expenditures were $74 million compared to
$98 million in the prior year. The decline was due to capital
expenditures associated with discontinued operations in the prior
year. Capital expenditures for continuing operations were
comparable to the prior year. In the first quarter of fiscal 2021,
the company paid $108 million of cash dividends, or the equivalent
of $0.35 per share, reflecting our commitment to shareholder
returns.
Cost Savings Program from Continuing Operations
In the first quarter of fiscal 2021, Campbell achieved $15
million in savings under its multi-year cost savings program,
inclusive of Snyder’s-Lance synergies, bringing total
program-to-date savings to $740 million. Campbell remains on track
to deliver annualized savings of $850 million by the end of fiscal
2022.
Quarterly Dividend Increase
The company’s Board of Directors has approved an increase in its
quarterly dividend from $0.35 per share to $0.37 per share, an
increase of 6%, or $1.48 on an annualized basis. The quarterly
dividend is payable Feb. 1, 2021, to shareholders of record at the
close of business Jan. 9, 2021.
Campbell Provides Second-Quarter Fiscal 2021 Guidance
The impact of the continuing pandemic on the company's fiscal
2021 results is uncertain and makes it difficult to provide a
full-year outlook at this time. Based on our expectation of a
continued elevated demand landscape and increased investment in our
brands, the company is providing second-quarter fiscal 2021
guidance as set forth in the table below:
Continuing Operations
Q2 2020 Results
Q2 2021 Guidance
($ in millions, except per share)
Net Sales
$2,162
+5% to +7%
Adjusted EBIT
$364*
+5% to +7%
Adjusted EPS
$0.72*
+12% to +15%
$0.81 to $0.83
* Adjusted - refer to the detailed
reconciliation of the reported (GAAP) financial information to the
adjusted financial information at the end of this news release.
Note: A non-GAAP reconciliation is not
provided for 2021 guidance as certain amounts are not estimable,
such as pension and postretirement mark-to-market adjustments, and
these items are not considered to reflect the company's ongoing
business results.
Segment Operating Review
An analysis of net sales and operating earnings by reportable
segment follows:
Three
Months Ended Nov. 1, 2020
($ in millions)
Meals & Beverages*
Snacks*
Total
Net Sales, as Reported
$1,342
$998
$2,340
Volume and Mix
11%
1%
6%
Price and Sales Allowances
—%
—%
—%
Promotional Spending
2%
2%
2%
Organic Net Sales
12%
4%
8%
Divestiture
—%
(3)%
(1)%
% Change vs. Prior Year
12%
1%
7%
Segment Operating Earnings
$333
$139
% Change vs. Prior Year
18%
11%
*Numbers may not add due to rounding.
Note: A detailed reconciliation of the
reported (GAAP) net sales to organic net sales is included at the
end of this news release.
Meals & Beverages
Net sales, both reported and organic, in the quarter increased
12% reflecting increases across U.S retail products, including
gains in U.S. soup, inclusive of Pacific Foods soups and broths,
Prego pasta sauces, V8 beverages, Campbell’s pasta and Pace Mexican
sauces, as well as gains in Canada, partially offset by declines in
foodservice. Volume was favorable in U.S. retail and Canada, driven
by increased demand of food purchases for at-home consumption,
offset partly by the negative impact on foodservice as a result of
shifts in consumer behavior and continued COVID-19 related
restrictions. Sales of U.S. soup increased 21% due to retailers
rebuilding inventory for the upcoming soup season, in-market gains
in condensed soups and broth and moderated promotional
activity.
Segment operating earnings increased 18%. The increase was
primarily due to sales volume gains and improved gross margin
performance, offset partly by increased marketing investment. Gross
margin performance was impacted by the lower levels of promotional
spending and favorable mix, as productivity improvements and
improved operating leverage were offset by other operational costs,
cost inflation and COVID-19 related costs.
Snacks
Net sales in the quarter increased 1%. Excluding the impact from
the sale of the European chips business, organic sales increased 4%
fueled by our power brands. Contributors to growth were lower
levels of promotional spending as well as healthy velocity on the
majority of the base business including volume gains in fresh
bakery products, Late July snacks, Pop Secret popcorn, Pepperidge
Farm cookies, Snack Factory Pretzel Crisps as well as Kettle Brand
potato chips, partly offset by declines in Lance sandwich crackers.
Sales of Goldfish crackers were relatively flat in the quarter, as
increased demand for family size products was offset by reduced
away-from-home consumption.
Segment operating earnings increased 11% driven by lower selling
expenses, lower marketing overhead and sales volume gains partly
offset by higher administrative expenses. Gross margin performance
was consistent with prior year as lower levels of promotional
spending were offset by higher net supply chain costs as
productivity improvements, cost savings initiatives and improved
operating leverage were more than offset by cost inflation and
COVID-19 related costs.
Corporate
Corporate expenses were $10 million in the first quarter of
fiscal 2021 compared to $87 million in the prior year. Corporate
expenses in the first quarter of fiscal 2021 included costs related
to cost savings initiatives of $5 million and pension settlement
gains of $4 million. Corporate expenses in the first quarter of
fiscal 2020 included charges related to the sale of the European
chips business of $64 million and costs of $8 million related to
cost savings initiatives. Excluding these amounts, the remaining
decrease in expenses primarily reflects losses on investments in
the prior year.
Conference Call and Webcast
Campbell will host a conference call to discuss these results
today at 8:30 a.m. Eastern Time. To join, dial +1 (703) 639-1316.
The access code is 4837006. Access to a live webcast of the call
with accompanying slides, as well as a replay of the call will be
available at
investor.campbellsoupcompany.com/events-and-presentations. A
recording of the call will also be available until midnight on
December 23, 2020, at +1 (404) 537-3406. The access code for the
replay is 4837006.
Reportable Segments
Campbell Soup Company earnings results are reported as
follows:
Meals & Beverages includes the
retail and foodservice businesses in the U.S. and Canada. The
segment includes the following products: Campbell’s condensed and
ready-to-serve soups; Swanson broth and stocks; Pacific Foods
broth, soups and non-dairy beverages; Prego pasta sauces; Pace
Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces;
Swanson canned poultry; Plum baby food and snacks; V8 juices and
beverages; and Campbell’s tomato juice.
Snacks includes Pepperidge Farm
cookies, crackers, fresh bakery and frozen products in U.S. retail,
including Milano cookies and Goldfish crackers, as well as Snyder’s
of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle
Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps,
Pop Secret popcorn, Emerald nuts, and other snacking products in
the U.S. and Canada. The segment also includes the retail business
in Latin America.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our purpose, "Real
food that matters for life's moments." For generations, people have
trusted Campbell to provide authentic, flavorful and affordable
snacks, soups and simple meals, and beverages. Founded in 1869,
Campbell has a heritage of giving back and acting as a good steward
of the planet's natural resources. The company is a member of the
Standard and Poor's 500 and the FTSE4Good Index. For more
information, visit www.campbellsoupcompany.com or follow company
news on Twitter via @CampbellSoupCo.
Forward-Looking Statements
This release contains “forward-looking statements” that reflect
the company’s current expectations about the impact of its future
plans and performance on the company’s business or financial
results. These forward-looking statements, including any statements
made regarding sales, EBIT and EPS guidance, rely on a number of
assumptions and estimates that could be inaccurate and which are
subject to risks and uncertainties. The factors that could cause
the company’s actual results to vary materially from those
anticipated or expressed in any forward-looking statement include:
(1) impacts of, and associated responses to, the COVID-19 pandemic;
(2) the company’s ability to execute on and realize the expected
benefits from its strategy, including growing sales in snacks and
maintaining its market share position in soup; (3) the impact of
strong competitive responses to the company’s efforts to leverage
its brand power with product innovation, promotional programs and
new advertising; (4) the risks associated with trade and consumer
acceptance of product improvements, shelving initiatives, new
products and pricing and promotional strategies; (5) the ability to
realize projected cost savings and benefits from cost savings
initiatives and the integration of recent acquisitions; (6)
disruptions to the company’s supply chain and/or operations, as
well as fluctuations in the supply of and inflation in energy and
raw and packaging materials cost; (7) the company’s ability to
manage changes to its organizational structure and/or business
processes, including selling, distribution, manufacturing and
information management systems or processes; (8) changes in
consumer demand for the company’s products and favorable perception
of the company’s brands; (9) changing inventory management
practices by certain of the company’s key customers; (10) a
changing customer landscape, with value and e-commerce retailers
expanding their market presence, while certain of the company’s key
customers maintain significance to the company’s business; (11)
product quality and safety issues, including recalls and product
liabilities; (12) the possible disruption to the independent
contractor distribution models used by certain of the company’s
businesses, including as a result of litigation or regulatory
actions affecting their independent contractor classification; (13)
the uncertainties of litigation and regulatory actions against the
company; (14) the costs, disruption and diversion of management’s
attention associated with activist investors; (15) a material
failure in or breach of the company’s information technology
systems; (16) impairment to goodwill or other intangible assets;
(17) the company’s ability to protect its intellectual property
rights; (18) increased liabilities and costs related to the
company’s defined benefit pension plans; (19) the company’s ability
to attract and retain key talent; (20) negative changes and
volatility in financial and credit markets, deteriorating economic
conditions and other external factors, including changes in laws
and regulations; (21) unforeseen business disruptions in one or
more of the company’s markets due to political instability, civil
disobedience, terrorism, armed hostilities, extreme weather
conditions, natural disasters, other pandemics or other calamities;
and (22) other factors described in the company’s most recent Form
10-K and subsequent Securities and Exchange Commission filings. The
company disclaims any obligation or intent to update the
forward-looking statements in order to reflect events or
circumstances after the date of this release.
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF
EARNINGS (unaudited)
(millions, except per share
amounts)
Three Months Ended
November 1, 2020
October 27, 2019
Net sales
$
2,340
$
2,183
Costs and expenses
Cost of products sold
1,527
1,445
Marketing and selling expenses
208
206
Administrative expenses
141
134
Research and development expenses
20
22
Other expenses / (income)
(18
)
56
Restructuring charges
1
3
Total costs and expenses
1,879
1,866
Earnings before interest and taxes
461
317
Interest, net
55
80
Earnings before taxes
406
237
Taxes on earnings
97
68
Earnings from continuing operations
309
169
Loss from discontinued operations
—
(3
)
Net earnings
309
166
Net loss attributable to noncontrolling
interests
—
—
Net earnings attributable to Campbell Soup
Company
$
309
$
166
Per share - basic
Earnings from continuing operations
attributable to Campbell Soup Company
$
1.02
$
.56
Loss from discontinued operations
—
(.01
)
Net earnings attributable to Campbell Soup
Company
$
1.02
$
.55
Weighted average shares outstanding -
basic
302
301
Per share - assuming dilution
Earnings from continuing operations
attributable to Campbell Soup Company
$
1.02
$
.56
Loss from discontinued operations
—
(.01
)
Net earnings attributable to Campbell Soup
Company
$
1.02
$
.55
Weighted average shares outstanding -
assuming dilution
304
303
CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL
SCHEDULE OF SALES AND EARNINGS (unaudited)
(millions, except per share
amounts)
Three Months Ended
November 1, 2020
October 27, 2019
Percent Change
Sales
Contributions:
Meals & Beverages
$
1,342
$
1,194
12
%
Snacks
998
989
1
%
Total sales
$
2,340
$
2,183
7
%
Earnings
Contributions:
Meals & Beverages
$
333
$
282
18
%
Snacks
139
125
11
%
Total operating earnings
472
407
16
%
Corporate
(10
)
(87
)
Restructuring charges
(1
)
(3
)
Earnings before interest and taxes
461
317
45
%
Interest, net
55
80
Taxes on earnings
97
68
Earnings from continuing operations
309
169
Loss from discontinued operations
—
(3
)
Net earnings
309
166
86
%
Net loss attributable to noncontrolling
interests
—
—
Net earnings attributable to Campbell Soup
Company
$
309
$
166
86
%
Per share - assuming dilution
Earnings from continuing operations
attributable to Campbell Soup Company
$
1.02
$
.56
82
%
Loss from discontinued operations
—
(.01
)
Net earnings attributable to Campbell Soup
Company
$
1.02
$
.55
85
%
CAMPBELL SOUP COMPANY
CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited)
(millions)
November 1, 2020
October 27, 2019
Current assets
$
2,463
$
1,738
Current assets of discontinued
operations
—
315
Plant assets, net
2,352
2,352
Intangible assets, net
7,327
7,371
Other assets
275
390
Noncurrent assets of discontinued
operations
—
944
Total assets
$
12,417
$
13,110
Current liabilities
$
2,906
$
3,252
Current liabilities of discontinued
operations
—
183
Long-term debt
4,996
6,706
Other liabilities
1,742
1,679
Noncurrent liabilities of discontinued
operations
—
41
Total equity
2,773
1,249
Total liabilities and equity
$
12,417
$
13,110
Total debt*
$
6,080
$
8,344
Total cash and cash equivalents*
$
722
$
176
*Includes discontinued operations as of
October 27, 2019.
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
(millions)
Three Months Ended
November 1, 2020
October 27, 2019
Cash flows from operating activities:
Net earnings
$
309
$
166
Adjustments to reconcile net earnings to
operating cash flow
Restructuring charges
1
3
Stock-based compensation
16
14
Pension and postretirement benefit
income
(20
)
(18
)
Depreciation and amortization
76
81
Deferred income taxes
25
(9
)
Loss on sales of businesses
—
104
Other
21
28
Changes in working capital, net of
divestitures
Accounts receivable
(189
)
(174
)
Inventories
(38
)
(37
)
Prepaid assets
8
6
Accounts payable and accrued
liabilities
(28
)
32
Other
(1
)
(14
)
Net cash provided by operating
activities
180
182
Cash flows from investing activities:
Purchases of plant assets
(74
)
(98
)
Purchases of route businesses
(1
)
(3
)
Sales of route businesses
3
2
Sales of businesses, net of cash
divested
—
368
Net cash provided by (used in) investing
activities
(72
)
269
Cash flows from financing activities:
Short-term borrowings, including
commercial paper
—
2,508
Short-term repayments, including
commercial paper
(123
)
(2,447
)
Long-term repayments
—
(399
)
Dividends paid
(108
)
(107
)
Treasury stock issuances
—
1
Payments related to tax withholding for
stock-based compensation
(13
)
(9
)
Other
(1
)
—
Net cash used in financing activities
(245
)
(453
)
Effect of exchange rate changes on
cash
—
(1
)
Net change in cash and cash
equivalents
(137
)
(3
)
Cash and cash equivalents — beginning of
period
859
31
Cash balance of discontinued operations —
beginning of period
—
148
Cash balance of discontinued operations —
end of period
—
(115
)
Cash and cash equivalents — end of
period
$
722
$
61
Reconciliation of GAAP to Non-GAAP Financial
Measures First Quarter Ended November 1, 2020
Campbell Soup Company uses certain non-GAAP financial measures
as defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted
in the United States and should be considered in addition to, not
in lieu of, GAAP reported measures. Management believes that also
presenting certain non-GAAP financial measures provides additional
information to facilitate comparison of the company's historical
operating results and trends in its underlying operating results,
and provides transparency on how the company evaluates its
business. Management uses these non-GAAP financial measures in
making financial, operating and planning decisions and in
evaluating the company's performance.
Organic Net Sales
Organic net sales are net sales excluding the impact of
currency, acquisitions, and divestitures. Management believes that
excluding these items, which are not part of the ongoing business,
improves the comparability of year-to-year results. A
reconciliation of net sales as reported to organic net sales
follows.
Three Months Ended
November 1, 2020
October 27, 2019
% Change
(millions)
Net Sales, as
Reported
Impact of Currency
Organic Net Sales
Net Sales, as
Reported
Impact of Divestiture
Organic Net Sales
Net Sales, as
Reported
Organic Net Sales
Meals & Beverages
$
1,342
$
—
$
1,342
$
1,194
$
—
$
1,194
12
%
12
%
Snacks
998
—
998
989
(25
)
964
1
%
4
%
Total Net Sales
$
2,340
$
—
$
2,340
$
2,183
$
(25
)
$
2,158
7
%
8
%
Items Impacting Earnings
Management believes that financial information excluding certain
items that are not considered to reflect the ongoing operating
results, such as those listed below, improves the comparability of
year-to-year results. Consequently, management believes that
investors may be able to better understand its results excluding
these items.
The following items impacted earnings:
Continuing Operations
(1)
The company has implemented
several cost savings initiatives in recent years.
In the first quarter of fiscal
2021, the company recorded Restructuring charges of $1 million and
implementation costs and other related costs of $4 million in
Administrative expenses and $1 million in Cost of products sold
(aggregate impact of $5 million after tax, or $.02 per share)
related to these initiatives. In the first quarter of fiscal 2020,
the company recorded Restructuring charges of $3 million and
implementation costs and other related costs of $8 million in
Administrative expenses (aggregate impact of $8 million after tax,
or $.03 per share) related to these initiatives. In the second
quarter of fiscal 2020, the company recorded Restructuring charges
of $7 million and implementation costs and other related costs of
$13 million in Administrative expenses, $2 million in Cost of
products sold, $2 million in Marketing and selling expenses, and $1
million in Research and development expenses (aggregate impact of
$19 million after tax, or $.06 per share) related to these
initiatives.
(2)
In the first quarter of fiscal
2021, the company recognized pre-tax pension settlement gains in
Other expenses / (income) of $4 million ($3 million after tax, or
$.01 per share). In the second quarter of fiscal 2020, the company
recognized pre-tax pension settlement gains in Other expenses /
(income) of $11 million ($8 million after tax, or $.03 per
share).
(3)
In the first quarter of fiscal
2020, the company recorded a loss in Other expenses / (income) of
$64 million ($60 million after tax, or $.20 per share) on the sale
of its European chips business. In the second quarter of fiscal
2020, the company recorded a tax benefit of $19 million ($.06 per
share) on the sale of its European chips business.
(4)
In the second quarter of fiscal
2020, the company recorded a loss in Interest expense of $75
million ($57 million after tax, or $.19 per share) on the
extinguishment of debt.
Discontinued Operations
(3)
In the first quarter of fiscal
2020, the company incurred charges of $51 million ($27 million
after tax, or $.09 per share) associated with the sale of the
Kelsen Group and the planned divestiture of the Arnott's business
and certain other international operations (Campbell
International).
The following tables reconcile financial information, presented
in accordance with GAAP, to financial information excluding certain
items:
Three Months Ended
November 1, 2020
October 27, 2019
(millions, except per share amounts)
As reported
Adjustments(a)
Adjusted
As reported
Adjustments(a)
Adjusted
Adjusted Percent
Change
Gross margin
$
813
$
1
$
814
$
738
$
—
$
738
10
%
Gross margin percentage
34.7
%
34.8
%
33.8
%
33.8
%
Administrative expenses
$
141
$
(4
)
$
137
$
134
$
(8
)
$
126
Other expenses / (income)
$
(18
)
$
4
$
(14
)
$
56
$
(64
)
$
(8
)
Restructuring charges
$
1
$
(1
)
$
—
$
3
$
(3
)
$
—
Earnings before interest and taxes
$
461
$
2
$
463
$
317
$
75
$
392
18
%
Interest, net
55
—
55
80
—
80
Earnings before taxes
$
406
$
2
$
408
$
237
$
75
$
312
Taxes
97
—
97
68
7
75
Effective income tax rate
23.9
%
23.8
%
28.7
%
24.0
%
Earnings from continuing operations
$
309
$
2
$
311
$
169
$
68
$
237
31
%
Earnings (loss) from discontinued
operations
—
—
—
(3
)
27
24
n/m
Net earnings attributable to Campbell Soup
Company
$
309
$
2
$
311
$
166
$
95
$
261
19
%
Diluted earnings per share - continuing
operations attributable to Campbell Soup Company*
$
1.02
$
.01
$
1.02
$
.56
$
.22
$
.78
31
%
Diluted earnings (loss) per share -
discontinued operations
—
—
—
(.01
)
.09
.08
n/m
Diluted net earnings per share
attributable to Campbell Soup Company*
$
1.02
$
.01
$
1.02
$
.55
$
.31
$
.86
19
%
(a)See following table for additional
information.
*The sum of individual per share amounts
may not add due to rounding.
n/m - not meaningful
Three Months Ended
November 1, 2020
October 27, 2019
(millions, except per share amounts)
Restructuring charges,
implementation costs and other related costs (1)
Pension settlement
(2)
Adjustments
Restructuring charges,
implementation costs and other related costs (1)
Divestitures
(3)
Adjustments
Gross margin
$
1
$
—
$
1
$
—
$
—
$
—
Administrative expenses
(4
)
—
(4
)
(8
)
—
(8
)
Other expenses / (income)
—
4
4
—
(64
)
(64
)
Restructuring charges
(1
)
—
(1
)
(3
)
—
(3
)
Earnings before interest and taxes
$
6
$
(4
)
$
2
$
11
$
64
$
75
Interest, net
—
—
—
—
—
—
Earnings before taxes
$
6
$
(4
)
$
2
$
11
$
64
$
75
Taxes
1
(1
)
—
3
4
7
Earnings from continuing operations
$
5
$
(3
)
$
2
$
8
$
60
$
68
Loss from discontinued operations
—
—
—
—
27
27
Net earnings attributable to Campbell Soup
Company
$
5
$
(3
)
$
2
$
8
$
87
$
95
Diluted earnings per share - continuing
operations attributable to Campbell Soup Company*
$
.02
$
(.01
)
$
.01
$
.03
$
.20
$
.22
Diluted loss per share - discontinued
operations
—
—
—
—
.09
.09
Diluted net earnings per share
attributable to Campbell Soup Company*
$
.02
$
(.01
)
$
.01
$
.03
$
.29
$
.31
*The sum of individual per share amounts
may not add due to rounding.
Three Months Ended
January 26, 2020
(millions)
As Reported
Restructuring charges,
implementation costs and other related costs (1)
Pension settlement
(2)
Divestitures
(3)
Loss on debt
extinguishment (4)
Adjusted
Earnings from continuing operations
attributable to Campbell Soup Company
$
171
$
19
$
(8
)
$
(19
)
$
57
$
220
Add: Net earnings (loss) attributable to
noncontrolling interests
—
—
—
—
—
—
Add: Taxes on earnings
33
6
(3
)
19
18
73
Add: Interest, net
146
—
—
—
(75
)
71
Earnings before interest and
taxes
$
350
$
25
$
(11
)
$
—
$
—
$
364
Three Months Ended
January 26, 2020
Diluted earnings per share - continuing
operations attributable to Campbell Soup Company, as
reported
$
.56
Add: Restructuring charges, implementation
costs and other related costs (1)
.06
Deduct: Pension settlement (2)
(.03
)
Deduct: Divestitures (3)
(.06
)
Add: Loss on debt extinguishment (4)
.19
Adjusted Diluted earnings per share -
continuing operations attributable to Campbell Soup Company
$
.72
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201209005227/en/
INVESTOR CONTACT: Rebecca Gardy
(856) 342-6081 rebecca_gardy@campbells.com
MEDIA CONTACT: Thomas Hushen (856)
342-5227 thomas_hushen@campbells.com
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