Executive Summary
Campbell Soup Company reported Q4 2024 revenue of $2.293 billion, reflecting a year-over-year decline of 6.64% and a quarter-over-quarter decrease of 3.21%. Despite top-line softness, gross profit reached $675 million with a margin of 29.44%, while operating income stood at $77 million (3.36% operating margin). The quarter ended with a net loss of $3 million and basic/diluted EPS of −$0.01, underscoring continued profitability headwinds from input costs, mix effects, and non-operating items. Cash flow remained robust, delivering $288 million of operating cash flow and $147 million of free cash flow, supporting capital allocation actions such as dividends and modest share repurchases. The balance sheet shows solid asset value and a heavy lean on goodwill/intangibles, paired with elevated debt levels, yielding a debt-to-capitalization of 0.665 and net debt of roughly $7.43 billion. Management commentary (where available) typically emphasizes price realization, productivity programs, and portfolio optimization as levers to restore margin, though no formal forward guidance is provided in the data. Investors should consider Campbell’s brand strength and cash generation against ongoing margin pressures and leverage during the near term.
Key Performance Indicators
QoQ: -7.79% | YoY:-13.02%
QoQ: -68.95% | YoY:-79.25%
QoQ: -102.26% | YoY:-101.48%
QoQ: -102.22% | YoY:-101.47%
Key Insights
Revenue: $2.293B (YoY -6.64%, QoQ -3.21%)
Gross Profit: $675M, Gross Margin 29.44% (YoY -13.02%, QoQ -7.79%)
Operating Income: $77M, Operating Margin 3.36% (YoY -79.25%, QoQ -68.95%)
Net Income: -$3M, Net Margin -0.13%
EPS (Diluted): -$0.01
EBITDA: $190M, EBITDA Margin ~8.29%
Cash Flow: Operating cash flow $288M; Free cash flow $147M; Capex $141M; Dividends paid $111M; Share repurchases ($21M)
Balance Sheet: Total assets $15.235B; Total liabilities $11.439B; Stockholders’ equity $3.794B; Goodw...
Financial Highlights
Revenue: $2.293B (YoY -6.64%, QoQ -3.21%)
Gross Profit: $675M, Gross Margin 29.44% (YoY -13.02%, QoQ -7.79%)
Operating Income: $77M, Operating Margin 3.36% (YoY -79.25%, QoQ -68.95%)
Net Income: -$3M, Net Margin -0.13%
EPS (Diluted): -$0.01
EBITDA: $190M, EBITDA Margin ~8.29%
Cash Flow: Operating cash flow $288M; Free cash flow $147M; Capex $141M; Dividends paid $111M; Share repurchases ($21M)
Balance Sheet: Total assets $15.235B; Total liabilities $11.439B; Stockholders’ equity $3.794B; Goodwill $5.078B; Intangibles $4.716B; Cash & equivalents $108M; Net debt $7.434B
Liquidity Ratios: Current 0.612, Quick 0.225, Cash 0.0302
Leverage: Debt/Capitalization 0.665; Debt/Equity 1.99; Interest Coverage ~2.3x (approx., based on EBITDA of $190M and interest expense of $84M)
Key Multiples: P/B ~2.63; P/S ~4.35; Dividend Yield ~1.11%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.29B |
-6.64% |
-3.21% |
| Gross Profit |
675.00M |
-13.02% |
-7.79% |
| Operating Income |
77.00M |
-79.25% |
-68.95% |
| Net Income |
-3.00M |
-101.48% |
-102.26% |
| EPS |
-0.01 |
-101.47% |
-102.22% |
Key Financial Ratios
operatingProfitMargin
13.9%
operatingCashFlowPerShare
$1.32
freeCashFlowPerShare
$0.67
dividendPayoutRatio
-3700%
priceEarningsRatio
-831.02
Management Commentary
Note: The earnings transcript data set provided is empty. As a result, there are no management quotes or verbatim themes to quote. If a transcript becomes available, I can extract CEO/CFO commentary on pricing actions, cost-savings initiatives, portfolio optimization, and near-term margin recovery plans to enrich this section.
Forward Guidance
No explicit forward guidance was supplied in the provided data for Campbell’s Q4 2024 release. Given the margin compression evident in the quarter, any credible outlook would hinge on a combination of: (a) price realization and mix benefits from the core soup and Pepperidge Farm portfolios; (b) ongoing cost-reduction programs and productivity gains across the supply chain; (c) working capital optimization and disciplined capital allocation. Investors should monitor: commodity input costs, wage/benefit trends, seasonality in demand for Simple Meals and Beverages, the pace of price increases, and progress toward deleveraging. A potential runway to mid-single-digit operating margins would likely require sustained pricing power and enduring cost savings, while maintaining or modestly growing free cash flow to support dividends and selective buybacks.