Campbell's reports 4% net sales decrease in 2022 first quarter

Campbell Soup Co. (NYSE: CPB) this week reported results for its first-quarter fiscal 2022. Campbell’s president and chief executive Mark Clouse commented, "We are pleased with our first-quarter results as consumer demand for our brands remained elevated, and pricing paired with productivity moderated inflation driven margin pressure.

Clouse said the company's "topline" was tempered by cycling of year-ago retailer inventory replenishment, along with industrywide supply chain disruptions. "

"We expect the steps we are taking to continue to address labor challenges, drive net price realization and improve productivity will lead to solid year-over-year earnings growth in the second half allowing us to maintain our full-year fiscal 2022 guidance." he noted.

Campbell Soup Co.'s Q1 highlights

• Net sales decreased 4%; organic net sales decreased 4% cycling retailer inventory recovery in the prior year. Compared with the first quarter of fiscal 2020, net sales increased 2% and organic net sales increased 5%.
• Earnings before interest and taxes (EBIT) decreased 18% to $376 million. Adjusted EBIT decreased 15% to $389 million.
• Earnings per share from continuing pperations were $0.86. Adjusted EPS decreased $0.12, or 12%, to $0.89.
• Reaffirms full-year guidance which has been adjusted to reflect the exclusion of unrealized mark-to-market gains and losses on outstanding undesignated commodity hedges from adjusted net earnings until such time that the related exposure impacts operating results.

Campbell Soup Co.'s investor day to be held virtually on Dec. 14.