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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Campbell’s Soup Reports on Q4 and FY 2019

09/04/2019

In a press release dated August 30th, Campbell’s Soup Company reported on the 4th quarter and FY 2019 ending July 28th. For the Quarter the company posted a net loss of $8.0 million on sales of $1,780 million with a EPS of $(0.03). For the corresponding fourth quarter of fiscal 2018, Campbell’s Soup Company earned $94 million on sales of $1,745 million with an EPS of $0.31. During the fourth quarter of fiscal 2019 the company reported “other expenses” of $128 million compared to income of $66 million for Q4 2018. For the 12-month period, the company earned $211 million on sales of $8,107 million less than in fiscal 2018 with net earnings of $261 million on net sales of $6,615 million.

For the 12-month period, Meals and Beverages represented 53 percent of net sales with the remaining 47 percent from snacks. The Meals and Beverages segment generated a 20.9 percent operating margin compared to 13.6 percent from snacks. Earnings from the Meals and Beverages segment were down 9 percent compared to Fiscal 2018, but Snacks were up 34 percent.

Campbell’s Soup achieved some pricing strength during fiscal 2019 and apparently settled disputes with major customers including Walmart.

In commenting on results Mark Clouse, president and CEO noted “we made significant progress against our 2019 strategic initiatives namely:  improving our in-market performance; over delivering our cost savings program; strengthening our relationship with key retailers; focusing the portfolio on our two core businesses in North America and completing the divestiture of Campbell Fresh and announcing the divestiture of Campbell International”.

Sale of non-profitable components reduced long-term debt from $7.10 billion to $7.99 billion during FY2019. The Campbell’s Soup Company balance sheet posts assets of $13.15 billion of which 56.5 percent is represented by intangibles presumably brands. Following the expensive foray into organic and fresh including a major loss on Bolthouse Foods and other acquisitions under the previous president and CEO Campbell Soup is apparently returning to its core competence.


 
Copyright 2019 Simon M. Shane