Campbell Soup Company (CPB) Bundle
A Brief History of Campbell Soup Company
Company Overview
Campbell Soup Company, established in 1869, has grown to become a leading global food company, primarily known for its soups, sauces, and snacks. As of 2024, Campbell operates in over 120 countries and is recognized for its commitment to quality and innovation in food production.
Financial Performance
In the fiscal year ending July 28, 2024, Campbell Soup Company reported net earnings of $567 million, translating to $1.89 per share. This marks a decline from the previous year’s net earnings of $858 million or $2.85 per share. The decrease is attributed to various factors including increased marketing and selling expenses, as well as higher interest expenses.
| Year | Net Earnings (in Millions) | Earnings Per Share (EPS) |
|---|---|---|
| 2024 | $567 | $1.89 |
| 2023 | $858 | $2.85 |
| 2022 | $1,081 | $3.44 |
Recent Transactions
On August 26, 2024, Campbell Soup Company sold its Pop Secret popcorn business for $75 million, with a pre-tax loss expected to be around $25 million due to allocated goodwill. The Pop Secret business had net sales of $119 million in 2024, down from $133 million in 2023.
Segment Performance
Campbell's Snacks segment reported net sales of $2.5 billion in 2024, a slight decrease from $2.6 billion in 2023. The Soup segment, however, showed resilience with net sales of $1.8 billion, which remained stable compared to the previous year.
| Segment | 2024 Net Sales (in Millions) | 2023 Net Sales (in Millions) |
|---|---|---|
| Snacks | $2,500 | $2,600 |
| Soup | $1,800 | $1,800 |
Acquisitions and Growth Strategy
In 2024, Campbell Soup Company acquired Sovos Brands, which contributed approximately 2% to total assets and 4% to total net sales. The company continues to focus on strategic acquisitions to enhance its portfolio and market presence.
Market Position and Challenges
Facing increased competition and rising commodity costs, Campbell Soup Company has been working on cost optimization strategies. The company’s management has emphasized the importance of innovation and brand loyalty as key drivers for future growth.
Outlook for 2025
Looking ahead, Campbell Soup Company aims to improve its financial performance through strategic initiatives and investments in product innovation. The management is optimistic about recovering market share and enhancing profitability in the coming years.
A Who Owns Campbell Soup Company (CPB)
Major Shareholders
As of 2024, the ownership of Campbell Soup Company (CPB) is characterized by a mix of institutional and individual shareholders. The largest institutional shareholders include:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8.2% |
| BlackRock, Inc. | Institutional | 7.5% |
| State Street Corporation | Institutional | 4.5% |
| Wellington Management Group LLP | Institutional | 3.9% |
| JPMorgan Chase & Co. | Institutional | 3.1% |
| Other Institutional Investors | Various | 69.8% |
Insider Ownership
Insiders, including executives and board members, hold a smaller percentage of shares. Key insider ownership includes:
| Name | Position | Shares Owned |
|---|---|---|
| Mark A. Clouse | President & CEO | 150,000 |
| Carrie L. Anderson | SVP & Controller | 75,000 |
| Other Executives | Various | 300,000 |
| Total Insider Ownership | 525,000 |
Stock Performance and Market Trends
As of July 28, 2024, Campbell Soup Company’s stock is traded on the Nasdaq under the symbol "CPB." The stock performance for the past year is summarized as follows:
| Period | Stock Price | Market Capitalization |
|---|---|---|
| July 2023 | $41.00 | $12.3 billion |
| January 2024 | $36.50 | $11.0 billion |
| July 2024 | $43.66 | $13.1 billion |
Shareholder Equity and Financial Position
The equity position of Campbell Soup Company as of July 28, 2024, is detailed below:
| Component | Amount (in millions) |
|---|---|
| Capital Stock | $12 |
| Additional Paid-in Capital | $437 |
| Earnings Retained in the Business | $4,569 |
| Capital Stock in Treasury | $(1,207) |
| Accumulated Other Comprehensive Income (Loss) | $(17) |
| Total Shareholders' Equity | $3,794 |
Recent Transactions and Dividends
In 2024, Campbell Soup Company completed the acquisition of Sovos Brands for $2.899 billion and sold its Pop Secret business for $75 million. The dividend declared in 2024 was $1.48 per share, totaling approximately $449 million in dividends paid.
| Transaction | Amount (in millions) |
|---|---|
| Acquisition of Sovos Brands | $2,899 |
| Sale of Pop Secret | $75 |
| Dividends Paid | $449 |
Campbell Soup Company (CPB) Mission Statement
Mission Statement Overview
Campbell Soup Company aims to provide high-quality, branded food and beverage products that deliver taste, convenience, and nutrition. The company focuses on meeting consumer needs while promoting sustainability and community engagement.
Financial Performance
In the fiscal year 2024, Campbell Soup Company reported net sales of $9.636 billion, an increase from $9.357 billion in 2023. The breakdown of net sales by category is as follows:
| Category | 2024 (in millions) | 2023 (in millions) | 2022 (in millions) |
|---|---|---|---|
| Meals & Beverages | $5,258 | $4,907 | $4,607 |
| Snacks | $4,378 | $4,450 | $3,955 |
| Total | $9,636 | $9,357 | $8,562 |
Earnings and Expenses
In 2024, Campbell Soup reported net earnings attributable to the company of $567 million ($1.89 per share), compared to $858 million ($2.85 per share) in 2023. Key expenses in 2024 included:
| Expense Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cost of Products Sold | $6,665 | $6,440 |
| Marketing and Selling Expenses | $833 | $811 |
| Administrative Expenses | $737 | $654 |
| Research and Development Expenses | $102 | $92 |
| Total Costs and Expenses | $8,636 | $8,045 |
Acquisition and Divestiture
On March 12, 2024, Campbell Soup Company completed the acquisition of Sovos Brands for a total purchase consideration of $2.899 billion. Additionally, the company sold its Pop Secret popcorn business on August 26, 2024.
Market Position and Strategy
Campbell Soup Company operates primarily in North America, with over 90% of its net sales and long-lived assets related to U.S. operations. The mission emphasizes sustainability and community goals, aiming for a lasting impact through responsible sourcing and production practices.
Stock Performance
As of July 28, 2024, Campbell Soup's capital stock began trading on The Nasdaq Stock Market LLC following its withdrawal from the New York Stock Exchange. The stock continues to trade under the symbol CPB.
Recent Initiatives
The company has undertaken cost savings initiatives aimed at achieving approximately $250 million in targeted annual savings by the end of 2028, reflecting its commitment to operational efficiency and financial discipline.
Conclusion on Mission Statement Alignment
Campbell Soup Company's mission to deliver quality products aligns with its financial strategies and market objectives, maintaining a focus on consumer preferences and operational improvements.
How Campbell Soup Company (CPB) Works
Company Overview
Campbell Soup Company (CPB) is a manufacturer and marketer of branded food and beverage products. As of 2024, the company operates through two main segments: Meals & Beverages and Snacks.
Financial Performance
In the fiscal year 2024, Campbell Soup Company reported total net sales of $9.636 billion, an increase of 3% compared to $9.357 billion in 2023. The breakdown of net sales by segment is as follows:
| Segment | 2024 Net Sales (Millions) | 2023 Net Sales (Millions) | 2022 Net Sales (Millions) |
|---|---|---|---|
| Meals & Beverages | $5,258 | $4,907 | $4,607 |
| Snacks | $4,378 | $4,450 | $3,955 |
| Total | $9,636 | $9,357 | $8,562 |
Earnings Analysis
Net earnings attributable to Campbell Soup Company for 2024 were $567 million ($1.89 per share), down from $858 million ($2.85 per share) in 2023. Key factors impacting earnings included:
- Increased marketing and selling expenses.
- Higher interest and other expenses.
- Restructuring charges totaling $38 million.
Gross Profit and Margins
Gross profit as a percentage of sales was 30.8% in 2024, down from 31.2% in 2023. The decrease was attributed to:
- Cost inflation and supply chain costs.
- Impact of the Sovos Brands acquisition.
- Productivity improvements partially offsetting cost increases.
Operating Expenses
Marketing and selling expenses were 8.6% of sales in 2024, slightly down from 8.7% in 2023. Administrative expenses increased to 7.6% of sales due to acquisition-related costs and inflation pressures.
Capital Expenditures
Capital expenditures totaled $517 million in 2024, up from $370 million in 2023. Key areas of investment included:
- Expansion of chip and cracker capacity.
- Upgrades across manufacturing assets.
- Improvements to headquarters in Camden, New Jersey.
Cash Flow and Liquidity
Cash flows from operations were $1.185 billion in 2024, an increase from $1.143 billion in 2023. The company had negative working capital of $1.386 billion as of July 28, 2024.
Debt and Financing
Total debt maturing within one year was $1.423 billion as of July 28, 2024. The company has maintained a strategy of refinancing and managing its debt effectively.
Market Position and Distribution
Wal-Mart Stores, Inc. accounted for approximately 22% of consolidated net sales in 2024. The company utilizes a direct-store-delivery distribution model for its Snacks segment, leveraging independent contractor distributors.
Recent Acquisitions and Divestitures
On March 12, 2024, Campbell Soup Company completed the acquisition of Sovos Brands for $2.899 billion. Additionally, the company divested its Pop Secret popcorn business in August 2024.
Dividend Policy
Dividends paid were $445 million in 2024, with an annual dividend declared of $1.48 per share. The fourth-quarter dividend was $.37 per share.
Summary of Key Financial Metrics
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Net Sales (Millions) | $9,636 | $9,357 | $8,562 |
| Net Earnings (Millions) | $567 | $858 | $757 |
| Earnings Per Share | $1.89 | $2.85 | $2.51 |
| Gross Profit Margin | 30.8% | 31.2% | 30.7% |
| Capital Expenditures (Millions) | $517 | $370 | $242 |
| Cash Flows from Operations (Millions) | $1,185 | $1,143 | $1,181 |
How Campbell Soup Company (CPB) Makes Money
Revenue Streams
The Campbell Soup Company generates revenue primarily through two main segments: Meals & Beverages and Snacks. In fiscal year 2024, total net sales amounted to $9.636 billion, representing a 3% increase from $9.357 billion in 2023.
| Segment | Net Sales 2024 (Millions) | Net Sales 2023 (Millions) | Change (%) |
|---|---|---|---|
| Meals & Beverages | $5,258 | $4,907 | 7% |
| Snacks | $4,378 | $4,450 | (2%) |
| Total | $9,636 | $9,357 | 3% |
Product Categories
Net sales by product categories in 2024 are detailed below:
| Product Category | Net Sales (Millions) |
|---|---|
| Soup | $2,709 |
| Snacks | $4,597 |
| Other Simple Meals | $1,618 |
| Beverages | $712 |
Operating Earnings
Operating earnings for 2024 were reported as follows:
| Segment | Earnings Before Interest and Taxes (Millions) |
|---|---|
| Meals & Beverages | $974 |
| Snacks | $648 |
| Total | $1,000 |
Gross Profit and Margins
Gross profit in 2024 was $2.971 billion, with a gross profit margin of 30.8%. This is a decrease from 31.2% in 2023.
Marketing and Selling Expenses
Marketing and selling expenses were 8.6% of sales in 2024, totaling approximately $830 million. This represented a 3% increase from 2023.
Acquisition Impact
In 2024, Campbell Soup Company completed the acquisition of Sovos Brands for approximately $2.899 billion. This acquisition contributed significantly to the Meals & Beverages segment's growth.
Cost Management Initiatives
Campbell Soup has implemented various cost savings initiatives, resulting in pre-tax charges of $104 million in 2024. These initiatives are expected to generate ongoing savings of approximately $250 million annually by the end of 2028.
Key Financial Metrics
The following key financial metrics highlight Campbell Soup's performance in 2024:
| Metric | Value |
|---|---|
| Net Earnings | $567 million |
| Earnings Per Share (EPS) | $1.89 |
| Dividends Paid | $445 million |
| Total Debt | $5.761 billion |
Market Presence
Campbell Soup's largest customer, Wal-Mart Stores, Inc., accounted for approximately 22% of consolidated net sales in 2024, 2023, and 2022.
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