Campbell Soup Company (0HST.L) Q3 2024 Earnings Report

Campbell Soup Company reported Q3 2024 revenue of USD 2.369 billion, with a year-over-year decline of 5.92%. The quarter exhibited margin compression, as gross margin stood at 29.7% and operating margin at 11.7%, yielding an operating income of USD 277 million and a net income of USD 133 million (EPS USD 0.45). Net income declined 43% year over year, while EPS contracted by roughly 43%. The reported results reflect ongoing cost-pressure dynamics, including higher operating expenses and a challenging price-cost environment, alongside substantial investing activity that materially affected cash flow metrics. Free cash flow for the quarter was USD 100 million, supported by USD 213 million of operating cash flow, but the period also featured a sizable cash outflow for acquisitions (USD -2.619 billion) within investing activities, contributing to a total investing outflow of USD -2.731 billion. Financing activities generated USD 2.456 billion, helping to offset investing outflows and leaving cash and equivalents at USD 107 million at period end. The balance sheet shows total assets of USD 15.243 billion and total liabilities of USD 11.328 billion, with stockholders’ equity of USD 3.913 billion. Net debt stood at USD 7.377 billion, and liquidity remains tight given a current ratio of 0.62 and a cash ratio of 0.031. The company maintains an attractive dividend program (payout around 82.7%), but leverage and interest coverage (≈3.96x) imply a cautious stance on near-term financial flexibility. Valuation metrics imply market sentiment reflects an earnings yield below peers in some cases, with a price-to-earnings around 25.6x and price-to-free-cash-flow around 136x. Overall, the QQ3 2024 print signals a period of normalization from recent acquisitions or large one-time items, with a strategic emphasis on cost control, pricing integrity, and balance sheet deleveraging to restore more sustainable cash generation.