Campbell’s was caught upside-down at the close of financial year 2022. Sales were up on inflation-related price increases but were not enough to counter the weight of higher expenses.

“I’m proud of our team for delivering full-year adjusted EPS at the high end of our original fiscal year 2022 guidance range, despite the volatile environment,” said Mark Clouse, Campbell’s President and CEO. “During fiscal 2022, we demonstrated a significant step up in execution across the company with improved supply chain performance and effective revenue management to counter inflation. Our solid foundation and momentum will serve us well in fiscal 2023 as we continue to make progress on unlocking Campbell’s full growth potential.”

Net sales increased by 6% to $2billion MoM, but only 1% YoY to $8.6 billion, while organic net sales increased by just 2% YoY. Both were kept low by the now-ubiquitous supply chain issues and material shortages. Unfortunately, the rise in sales did nothing to help, which is why ending EBIT (Earnings Before Interest & Taxes) decreased a considerable 25% YoY to $1.2 billion. EPS (Earnings Per Share) decreased to $2.51/share compared to $3.31 in 2021.

Cash flow increased marginally YoY from $1,035 million to $1,181 million, while cash expenditures were down, having reached $275 million last year and only $242 million this year.

Moving into 2023, Campbell’s expects a slackening of problems related to supply constraints, but much of the same when it comes to inflation. They maintain pricing power that helps maintain flexibility as that inflation comes and goes.