On June 9th, Campbell Soup Company (CPB) reported on results for the third quarter of fiscal 2021 ended May 2nd. For the three months, the company posted net earnings of $160 million on sales of $1,984 million with an EPS of $0.53. Comparable figures for the third quarter ending April 26, 2020, were net earnings of $168 million on sales of $2,238 million with an EPS of $0.56. During the most recent quarter approximately 52 percent of revenue was derived from the Meals and Beverages segment and the remainder from the Snacks segment. Net sales for the two segments were down respectively 15 percent and eight percent compared to the corresponding quarter of FY 2020.
In commenting on results, Mark Clouse, President and CEO stated, "while we recognize the third quarter would be a challenging net sales comparison due to the demand surge at the onset of the COVID-19 pandemic a year ago, we faced additional headwinds. Our results were impacted by a rising inflationary environment, short-term increases in supply chain costs and some executional pressures as we continue to advance our agenda, primarily in our Snacks segment". The effect of inflation is evident in the gross margin that declined from 34.5 percent in Q3 FY 2020 to 31.7 percent for the most recently completed quarter.
Campbell Soup has a market capitalization of $14.1 billion. The company has traded over a fifty-two-week period in a range of $44.53 to $54.08 with a 50-day moving average of $48.96. On a trailing twelve-month basis, operating margin was 15.7 percent and profit margin 9.0 percent. Over the past twelve months CPB has returned 7.3 percent on assets and 29.7 percent on equity. As of May 14th, 10 percent of the float was short. Release of the results was reflected in a decline in share price from $49.10 at close of trading on Tuesday, June 8th to $46.51 at noon Wednesday, June 9th, down 5.3 percent.