Campbell Soup Company (CPB) has reported 50.52 percent jump in profit for the quarter ended Oct. 30, 2016. The company has earned $292 million, or $0.94 a share in the quarter, compared with $194 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $311 million, or $1 a share compared with $297 million or $0.95 a share, a year ago.
Revenue during the quarter went down marginally by 0.05 percent to $2,202 million from $2,203 million in the previous year period. Gross margin for the quarter expanded 392 basis points over the previous year period to 38.19 percent. Total expenses were 79.25 percent of quarterly revenues, down from 85.70 percent for the same period last year. This has led to an improvement of 646 basis points in operating margin to 20.75 percent.
Operating income for the quarter was $457 million, compared with $315 million in the previous year period.
However, the adjusted operating income for the quarter stood at $486 million compared to $479 million in the prior year period. At the same time, adjusted operating margin improved 33 basis points in the quarter to 22.07 percent from 21.74 percent in the last year period.
Denise Morrison, Campbell’s President and Chief Executive Officer, said, “Fiscal 2017 is off to a solid start relative to our expectations. We continue to execute against our strategic imperatives, reinvest in our business to stimulate topline growth and aggressively manage our costs. We delivered expanded gross margin, and adjusted EBIT and EPS growth cycling a strong year-ago quarter. As expected, organic sales were down slightly compared to the prior year, due to the performance of Campbell Fresh. Campbell Fresh continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3 to $3.09 on adjusted basis.
Operating cash flow declines
Campbell Soup Company has generated cash of $221 million from operating activities during the quarter, down 9.43 percent or $ 23 million, when compared with the last year period. The company has spent $52 million cash to meet investing activities during the quarter as against cash outgo of $68 million in the last year period.
The company has spent $173 million cash to carry out financing activities during the quarter as against cash outgo of $162 million in the last year period.
Cash and cash equivalents stood at $290 million as on Oct. 30, 2016, up 10.27 percent or $27 million from $263 million on Nov. 01, 2015.
Working capital remains negative
Working capital of Campbell Soup Company was negative $614 million on Oct. 30, 2016 compared with negative $567 million on Nov. 01, 2015. Current ratio was at 0.78 as on Oct. 30, 2016, down from 0.80 on Nov. 01, 2015.
Days sales outstanding were almost stable at 13 days for the quarter, when compared with the last year period.
Debt comes down
Campbell Soup Company has recorded a decline in total debt over the last one year. It stood at $2,298 million as on Oct. 30, 2016, down 9.46 percent or $240 million from $2,538 million on Nov. 01, 2015. Total debt was 28.59 percent of total assets as on Oct. 30, 2016, compared with 30.56 percent on Nov. 01, 2015. Debt to equity ratio was at 1.44 as on Oct. 30, 2016, down from 1.80 as on Nov. 01, 2015. Interest coverage ratio improved to 16.32 for the quarter from 11.25 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: editor@irisindia.net
