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Campbell's CEO Highlights Brand Strength But Warns Tariffs Will Dent Profits

The Campbell’s Company (NASDAQ:CPB) shares are trading higher in Wednesday’s premarket session, despite a mixed fourth-quarter report. The iconic canned soup and snack company slightly missed revenue expectations but surpassed earnings per share estimates.

The company reported fourth-quarter sales growth of 1% year-over-year (Y/Y) to $2.32 billion, slightly missing the analyst consensus estimate of $2.33 billion.

The additional week in the quarter contributed 7% to the net sales. Organic net sales fell 3% Y/Y to $2.2 billion, owing to lower volume/mix (-4% Y/Y).

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Meals & Beverages net sales in the quarter remained flat Y/Y. Excluding the impact of the additional week in the quarter and the noosa divestiture, organic net sales were down 3% due to a decline in Rao’s pasta sauces and U.S. soup.

Adjusted gross profit margin decreased 90 basis points to 30.5% due to cost inflation and other supply chain costs.

Adjusted EBIT was down 2% Y/Y to $321 million due to a decline in adjusted gross profit and increased adjusted marketing and selling expenses.

Adjusted EPS of 62 cents beat the consensus estimate of 56 cents.

The company held $132 million in cash ...