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The Campbell's Company (CPB-0.73%) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
The filing reports net sales of $2.772 billion, a 10% increase from the same quarter in the previous year. This increase was primarily driven by the acquisition of Sovos Brands, which contributed a 12-point benefit to sales.
Gross profit as a percentage of sales remained unchanged at 31.3% compared to the prior year. Productivity improvements and favorable mark-to-market adjustments were offset by cost inflation and other supply chain costs.
Earnings per share for the quarter were reported at $0.72, down from $0.78 in the previous year. The decrease was attributed to higher interest expenses and increased marketing and administrative costs.
The company recognized a loss of $25 million from the sale of its Pop Secret popcorn business. Additionally, $27 million in pre-tax charges were recorded related to restructuring and cost-saving initiatives.
Operating earnings for the Meals & Beverages segment increased by 17%, primarily due to the acquisition of Sovos Brands. However, operating earnings for the Snacks segment decreased by 12% due to cost inflation and unfavorable pricing.
Interest expense increased to $87 million from $49 million in the previous year, primarily due to higher debt levels.
The effective tax rate decreased to 23.2% from 24.5% in the previous year, mainly due to excess tax benefits from stock-based compensation.
The Campbell's Company announced a name change from Campbell Soup Company, effective November 19, 2024, following shareholder approval.
The company continues to focus on cost-saving initiatives and expects to generate annual savings of approximately $250 million by the end of 2028.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Campbell's Company quarterly 10-Q report dated December 4, 2024. To report an error, please email earnings@qz.com.