Campbell Soup Company Q2 Profit Matches Estimates; Net Sales Up 5%

(RTTNews) - Campbell Soup Company (CPB) said its second quarter adjusted earnings per share from continuing operations increased 17% year-on-year reflecting an increase in adjusted EBIT and lower adjusted net interest expense. Net sales, both reported and organic, increased 5% driven by gains in both Meals & Beverages and Snacks. Also, Campbell remains on track to deliver annualized savings of $850 million by the end of fiscal 2022.

Second quarter adjusted earnings per share was $0.84 compared to $0.72, a year ago. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.84, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBIT increased 8% to $393 million.

Second quarter net sales were $2.28 billion compared to $2.16 billion, previous year. Analysts expected revenue of $2.3 billion, for the quarter. The company said the growth was driven by a 4% increase in volume and mix reflecting heightened demand as at-home food consumption remained elevated as a result of the pandemic.

In the second quarter, Campbell achieved just over $20 million in savings under its multiyear cost savings program, bringing total program-to-date savings to approximately $760 million.

For fiscal 2021, the company projects adjusted earnings per share in a range of $3.03 to $3.11, an increase of 3% to 5% from prior year. Organic net sales are projected to decline in a range of 1.5% to 0.5%.