Campbell Soup Co. (CPB) on Thursday announced financial results for its fiscal first quarter that surpassed consensus forecast. However, its outlook for the current quarter did not match expectations, sending its shares slightly down in the previous trading session.
The Camden, New Jersey-based company reported earnings of $309 million, or $1.02 a share for the three months ended Nov. 1, significantly higher than $166 million, or 55 cents a share in the comparable period last year. Analysts on average were looking for a profit of 91 cents per share.
Revenue for the quarter came in at $2.34 billion, up from $2.18 billion in the year-ago quarter, and above consensus forecast of $2.32 billion.
If we look at the sales performance of different segments, revenue from the meals and beverages segment jumped 12 percent on a year-over-year basis. Comparatively, revenue from the snacks business rose just 1 percent in the quarter.
CEO Mark Clouse said in a statement, “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.”
The company also increased its quarterly dividend to $0.37 per share that will be payable to shareholders on February 1.
Gross margins in the quarter increased to 34.7 percent, as compared to 33.8 percent in the year-ago quarter. Moreover, marketing and selling costs rose 1 percent to $208 million.
Q2 Financial Outlook
However, the company has been maintaining its leading position in the market through its brand recognition, innovation, the nutritional value of its products, promotions, and customer service, among others.
The demand for Campbell’s
The company generates most of its revenue during the winter season. Demand for its soup products remained relatively higher as compared to the previous years, mainly driven by the Covid-19 pandemic.
The company’s revenue-generating capacity is also expected to suffer if it is unable to foresee changing consumer preferences. In short, it continuously needs to offer a wide range of products according to the taste of customers to keep growing in the coming time.