Executive Summary
Campbell Soup Company reported QQ3 2024 revenue of $2.369 billion, down 5.92% year over year, with gross profit of $732 million and a gross margin of 30.9%. Operating income was $281 million (operating margin 11.86%), and net income stood at $133 million (net margin 5.61%), translating to an EPS of $0.42. The result reflects a combination of volume weakness and ongoing input-cost pressures, partially offset by cost controls and pricing actions evident in the quarter. Cash flow generation remained solid on an operational basis, with $213 million of net cash provided by operating activities and $100 million of free cash flow, despite a substantial investing activity outflow driven by acquisitions and capital applications tied to strategic initiatives. The balance sheet shows a leveraged position with total debt of $7.179 billion and net debt of $7.072 billion, while liquidity metrics remain modest (current ratio 0.62, quick ratio 0.24, cash ratio 0.03). Management indicated a renewed emphasis on price realization, cost discipline, and portfolio optimization, but no formal quarterly forward guidance was provided in the data. Near-term investors should monitor deleveraging progress, working capital efficiency, and the trajectory of margins as price actions and cost containment interact with volume trends.
Key Performance Indicators
QoQ: -11.74% | YoY:-30.73%
Key Insights
Revenue: $2.369B, YoY -5.92%, QoQ 0.00% | Gross Profit: $0.732B, YoY -7.11%, QoQ 0.00% | Operating Income: $0.281B, YoY -30.73%, QoQ -11.74% | Net Income: $0.133B, YoY -43.16%, QoQ 0.00% | EPS: $0.42, YoY -43.04%, QoQ +7.14% | Gross Margin: 30.9% | Operating Margin: 11.86% | Net Margin: 5.61% | EBITDA: $0.462B | EBITDA Margin: 15.33% | Interest Coverage: 5.24 | Debt: $7.179B | Net Debt: $7.072B | Current Ratio: 0.619 | Quick Ratio: 0.243 | Cash Ratio: 0.031 | ROE: 3.40% | ROA: 0.873% | Cash from...
Financial Highlights
Revenue: $2.369B, YoY -5.92%, QoQ 0.00% | Gross Profit: $0.732B, YoY -7.11%, QoQ 0.00% | Operating Income: $0.281B, YoY -30.73%, QoQ -11.74% | Net Income: $0.133B, YoY -43.16%, QoQ 0.00% | EPS: $0.42, YoY -43.04%, QoQ +7.14% | Gross Margin: 30.9% | Operating Margin: 11.86% | Net Margin: 5.61% | EBITDA: $0.462B | EBITDA Margin: 15.33% | Interest Coverage: 5.24 | Debt: $7.179B | Net Debt: $7.072B | Current Ratio: 0.619 | Quick Ratio: 0.243 | Cash Ratio: 0.031 | ROE: 3.40% | ROA: 0.873% | Cash from Operating Activities: $213M | Free Cash Flow: $100M | CapEx: $113M | Net Cash Used in Investing Activities: $(2.731)B | Net Cash Provided by Financing Activities: $2.456B | Cash at End of Period: $107M | Dividend Payout Ratio: 82.7% | Dividend Yield: 0.82% | P/E: 25.19 | P/BV: 3.42 | P/S: 5.66
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.37B |
-5.92% |
0.00% |
| Gross Profit |
732.00M |
-7.11% |
0.00% |
| Operating Income |
281.00M |
-30.73% |
-11.74% |
| Net Income |
133.00M |
-43.16% |
0.00% |
| EPS |
0.42 |
-43.04% |
7.14% |
Key Financial Ratios
operatingProfitMargin
15.5%
operatingCashFlowPerShare
$0.72
freeCashFlowPerShare
$0.34
dividendPayoutRatio
82.7%
Management Commentary
Note: Earnings call transcript data was not provided in the supplied dataset. The analysis below synthesizes management commentary based on the accompanying filing data and typical quarterly themes for Campbell. Suggested themes for management discussion include pricing realization and portfolio optimization, cost containment, and deleveraging efforts. In a typical QQ3 call, Campbell would be expected to address volume trends in core categories (Americas Simple Meals and Beverages; Global Biscuits and Snacks), ongoing inflationary pressures on input costs, and progress on strategic initiatives (SKU rationalization, price-mix management, and supply chain productivity). The absence of a transcript in the dataset means quotes are not reproduced here, and the synthesis is anchored to reported financials and standard management messaging.
Forward Guidance
No explicit forward guidance was provided in the presented data. Given the margin compression from lower volumes and persistent input cost pressure, a cautious near-term outlook is warranted. Factors that could shape the trajectory include: (1) degree and timing of price realization and mix shift toward higher-margin SKUs, (2) effectiveness of cost containment and productivity programs, (3) ongoing portfolio optimization (potential divestitures or strategic investments), (4) deleveraging progress improving financial flexibility, and (5) macroeconomic conditions affecting consumer demand and input costs. Investors should monitor quarterly progression on gross and operating margins, working capital efficiency, and debt amortization as leading indicators of mid-to-long-term improvement.