Positive momentum: Campbell Soup reports record earnings in its fiscal first quarter 2024

Campbell Soup Company released results for its first quarter of fiscal 2024, which ended October 29, 2023. The news was greeted with enthusiasm on Wall Street and shares rose 5% after beating expectations.

Likewise, the company’s CEO, Mark Clouse, stated that the first quarter results met the expectations set by the company. Despite the current consumer landscape, they have managed to maintain 15% year-over-year growth and effectively navigate this market.

“We have had an encouraging start to our important holiday season, and we expect to build momentum for the remainder of the fiscal year behind disciplined execution, increased innovation and the overall relevance of our brands in this current environment. As a result, we are confident in reaffirming our guidance for the full year. Finally, we remain excited about the addition of the Sovos Brands portfolio and expect to close the transaction in calendar year 2024,” he added.

During the period under evaluation, total earnings were US$2.5 million, a decrease of 2% compared to the previous year. However, in organic terms, the decrease was 1%. Over the past two years, it has recorded an average annual growth of 6% in total revenues and 7% in organic revenues, thanks to the implementation of favorable pricing and a strong brand presence.

Earnings before interest and taxes (EBIT) amounted to US$358 million, while adjusted EBIT decreased by 9% to US$407 million. Earnings per share reached $0.78, while adjusted EPS was $0.91, a decrease of 11%.

The company continues to maintain its direction for fiscal 2024 and continues to expect that the purchase of Sovos Brands, Inc. (Sovos Brands) will be completed in 2024.