Campbell Soup Co. Faces Challenging Third Quarter | 2021-06-10

Campbell Soup Co. Faces Challenging Third Quarter |  2021-06-10

Meals & Beverages business unit sales fell 14% during the quarter to $1.04 billion. Segment operating earnings fell 35%. The decrease was primarily due to sales volume declines and lower gross margin performance partially offset by lower marketing and selling expenses, according to the company. Quarterly sales fell to $1.98 billion from $2.24 billion the year prior and reflected a difficult comparison to the third quarter of fiscal 2020 when there was the surge in at-home consumption. “Sales of US soup decreased 21% due to volume declines in condensed soups, ready-to-serve soups and broth, lapping a 35% increase in the prior year quarter,” said Mick J. Beekhuizen, chief financial officer.

“… I think that put some added pressure on an already tough quarter for us as it related to Snacks,” Mr. Clouse said. He called the third bucket “execution related” and said it was due to the transformation underway in Campbell’s Snacks business unit. Initiatives included the adoption of SAP, the closing of a plant in Columbus, Ga., and three capacity expansion projects at other facilities.

Net income for the quarter ended May 2 was $160 million, equal to 53¢ per share on the common stock, and a slight decline when compared to the third quarter of fiscal 2019 when the company earned $168 million, or 56¢ per share. “We, like others, faced pronounced inflation related primarily to steeply higher transportation costs, some of which was an outcome from the strain of the Texas winter storms on supply chain logistics and the closure of our Paris, Texas, facility for two weeks,” Mr. Clouse said. “The second bucket I would characterize as transitional items that we are working our way through as we move out of the COVID-19 environment and fully recover on supply. This includes areas like lower fixed cost leverage as we lapped the year ago elevated levels of demand, sustained labor challenges and added investment in higher-cost co-manufacturers to recover fully on supply.”

Source www.foodbusinessnews.net Adjusted earnings per share are expected to be between $2.90 to $2.93 for the year, down from $3.03 to $3.11 the year prior.

Based on third-quarter results and expected continued margin pressure in the fourth quarter related to the transition out of the COVID-19 business environment and commodity inflation, the company adjusted its fiscal 2021 guidance. Management is now forecasting fiscal 2021 sales to fall in a range between $8.38 billion and $8.43 billion. Fiscal 2020 sales were $8.69 billion. Snacks sales fell 8% to $945 million during the quarter. The business unit’s earnings fell 29%. Brands impacted by volume declines included Pop Secret, Cape Cod, Snyder’s of Hanover and Lance.

The News Highlights

  • Campbell Soup Co. Faces Challenging Third Quarter | 2021-06-10
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Xbox Game Pass is a subscription service that allows you to play In July, Monster Hunter World and seven more games will be lost

Xbox Game Pass is a subscription service that allows you to play In July, Monster Hunter World and seven more games will be lost

Multiple titles are scheduled to exit Xbox Game Pass on console and PC in July, such as Monster Hunter World and indie darling Outer Wilds. While a chunk of ...
Ole Tyme Produce Certified Nationally Women’s Owned Company – Produce Blue Book

Ole Tyme Produce Certified Nationally Women’s Owned Company – Produce Blue Book

“The pandemic gave us an opportunity to use our company’s expertise and assets as we joined with other great organizations to help our community get ...
Memphis Juneteenth Festival at Health Sciences Park: Federal Holiday

Memphis Juneteenth Festival at Health Sciences Park: Federal Holiday

“We wanted this process to be respectful, to be something that healed divisions,” Turner said during a recent press conference, describing a similarly “full ...
PS4 and PS5 Games: Battlefield 2042

PS4 and PS5 Games: Battlefield 2042

Set in a near-future world transformed by disorder, you’ll have to adapt and overcome dynamic battlegrounds with the help of your squad and an arsenal of ...
The Fed Will No More Talking About Talking: Morning Brief

The Fed Will No More Talking About Talking: Morning Brief

For months now, Powell and other Fed officials have reiterated that they both were not “talking about talking about” tapering asset purchases — which are still ...
Now that RuneScape is available on iOS and Android, it’s time to go fishing

Now that RuneScape is available on iOS and Android, it’s time to go fishing

RuneScape, or in this case RS3, is developed and published by Jagex and has been around in some form or another for the better part of 20 years now. In that ...
Alabama  News Council Announces Three Inside Promotions

Alabama News Council Announces Three Inside Promotions

Advertisement. Scroll to continue reading. Hope said: “I’m excited to continue our mission through this new role and honored to work with our team and many ...
A Company Fined more than £100,000 after it imported fake Apple chargers

Apple adds new backgrounds, improved search, notifications, and more to iMovie, Final Cut Pro, Motion, and Compressor

final cut pro x 10 4 9 iMovie 10.2.4 brings sixteen new solid and textured backgrounds with adjustable colors, the ability to import projects created with ...
Downtown businesses benefit from Aaron Rodgers COVID-19 relief fund

Downtown businesses benefit from Aaron Rodgers COVID-19 relief fund

Many businesses on Third street received funding from the foundation. Rodgers’ relief fund donated a total of $1.6 million through two rounds of grants. ...
Prime Day starts early for many gadgets

Deals on Amazon Prime Day 2021

Amazon Prime Day (June 21-22) brings savings in many categories, but some of the very best deals can consistently be found on Echo gadgets with Alexa ...
Show next
Compsmag - Latest News from tech, business and health
Logo