Campbell Soup Company (CPB) has reported a 50.36 percent plunge in profit for the quarter ended Aug. 02, 2015. The company has earned $68 million, or $0.22 a share in the quarter, compared with $137 million, or $0.43 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $135 million, or $0.43 a share compared with $130 million or $0.41 a share, a year ago. Revenue during the quarter dropped 8.59 percent to $1,693 million from $1,852 million in the previous year period. Gross margin for the quarter expanded 208 basis points over the previous year period to 36.15 percent. Total expenses were 92.44 percent of quarterly revenues, up from 87.37 percent for the same period last year. That has resulted in a contraction of 507 basis points in operating margin to 7.56 percent.
Operating income for the quarter was $128 million, compared with $234 million in the previous year period.
Denise Morrison, Campbell’s President and Chief Executive Officer, said, "I am pleased with the fourth-quarter performance in U.S. Simple Meals as well as organic sales growth in the Bolthouse and Foodservice segment. For the year, four of the company’s five reporting segments posted organic sales gains. Global Baking and Snacking performed well this year as we made progress in stabilizing our business in Australia. I am particularly encouraged by the improvement in gross margin across the company in the back half of the year. We recognize that we have more work to do to drive sustainable, profitable growth."
For financial year 2016, the company projects diluted earnings per share to be in the range of $2.53 to $2.58 on adjusted basis.
Operating cash flow improves significantly
Campbell Soup Company has generated cash of $1,182 million from operating activities during the year, up 31.48 percent or $283 million, when compared with the last year. The company has spent $603 million cash to meet investing activities during the year as against cash outgo of $134 million in the last year. It has incurred net capital expenditure of $365 million on net basis during the year, up 12.31 percent or $40 million from year ago.
The company has spent $526 million cash to carry out financing activities during the year as against cash outgo of $925 million in the last year period.
Cash and cash equivalents stood at $253 million as on Aug. 02, 2015, up 9.05 percent or $21 million from $232 million on Aug. 03, 2014.
Working capital remains negative
Working capital of Campbell Soup Company was negative $714 million on Aug. 02, 2015 compared with negative $889 million on Aug. 03, 2014. Current ratio was at 0.75 as on Aug. 02, 2015, up from 0.70 on Aug. 03, 2014.
Debt moves up
Campbell Soup Company has witnessed an increase in total debt over the last one year. It stood at $2,552 million as on Aug. 02, 2015, up 13.73 percent or $308 million from $2,244 million on Aug. 03, 2014. Total debt was 31.55 percent of total assets as on Aug. 02, 2015, compared with 27.66 percent on Aug. 03, 2014. Debt to equity ratio was at 1.85 as on Aug. 02, 2015, up from 1.40 as on Aug. 03, 2014. Interest coverage ratio deteriorated to 4.74 for the quarter from 7.80 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
