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CPB (The Campbell's Co) Gross Margin % : 30.50% (As of Jan. 2025)


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What is The Campbell's Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Campbell's Co's Gross Profit for the three months ended in Jan. 2025 was $819 Mil. The Campbell's Co's Revenue for the three months ended in Jan. 2025 was $2,685 Mil. Therefore, The Campbell's Co's Gross Margin % for the quarter that ended in Jan. 2025 was 30.50%.

Warning Sign:

The Campbell's Co gross margin has been in long-term decline. The average rate of decline per year is -2.1%.


The historical rank and industry rank for The Campbell's Co's Gross Margin % or its related term are showing as below:

CPB' s Gross Margin % Range Over the Past 10 Years
Min: 30.57   Med: 33.82   Max: 41.84
Current: 30.57


During the past 13 years, the highest Gross Margin % of The Campbell's Co was 41.84%. The lowest was 30.57%. And the median was 33.82%.

CPB's Gross Margin % is ranked better than
60.35% of 1836 companies
in the Consumer Packaged Goods industry
Industry Median: 25.805 vs CPB: 30.57

The Campbell's Co had a gross margin of 30.50% for the quarter that ended in Jan. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Campbell's Co was -2.10% per year.


The Campbell's Co Gross Margin % Historical Data

The historical data trend for The Campbell's Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Campbell's Co Gross Margin % Chart

The Campbell's Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.51 33.16 30.68 31.17 30.83

The Campbell's Co Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.60 30.90 29.44 31.28 30.50

Competitive Comparison of The Campbell's Co's Gross Margin %

For the Packaged Foods subindustry, The Campbell's Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Campbell's Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Campbell's Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Campbell's Co's Gross Margin % falls into.


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The Campbell's Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Campbell's Co's Gross Margin for the fiscal year that ended in Jul. 2024 is calculated as

Gross Margin % (A: Jul. 2024 )=Gross Profit (A: Jul. 2024 ) / Revenue (A: Jul. 2024 )
=2971 / 9636
=(Revenue - Cost of Goods Sold) / Revenue
=(9636 - 6665) / 9636
=30.83 %

The Campbell's Co's Gross Margin for the quarter that ended in Jan. 2025 is calculated as


Gross Margin % (Q: Jan. 2025 )=Gross Profit (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=819 / 2685
=(Revenue - Cost of Goods Sold) / Revenue
=(2685 - 1866) / 2685
=30.50 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Campbell's Co  (NAS:CPB) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Campbell's Co had a gross margin of 30.50% for the quarter that ended in Jan. 2025 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Campbell's Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Campbell's Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Campbell's Co Business Description

Address
1 Campbell Place, Camden, NJ, USA, 08103-1799
Over the past 150-plus years, Campbell has evolved into a leading packaged food manufacturer in North America, with a portfolio that extends beyond its iconic red-and-white labeled canned soup. In fiscal 2024, snacks accounted for nearly half of its revenue, followed by soup (28%), other simple meals (17%), and beverages (7%). Outside its namesake, its brands include Pepperidge Farm, Goldfish, Snyder's of Hanover, Swanson, Pacific Foods, Prego, Pace, V8, and recently acquired Rao's (a deal that closed in March 2024). Around 90% of its revenue results from the US and the remainder from Canada and Latin America.
Executives
Anthony Sanzio officer: Executive Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Stanley Polomski officer: Vice President and Controller ONE CAMPBELL PLACE, CAMDEN NJ 08103
Carrie L Anderson officer: Executive Vice President & CFO 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Adam Grey Ciongoli officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Bennett Jr Dorrance director 1, CAMPBELL PLACE, CAMDEN NJ 08103
Craig Slavtcheff officer: Senior Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Daniel L Poland officer: EVP, Chief Supply Chain Off. 399 JEFFERSON ROAD, PARSIPPANY NJ 07054
May Diane Johnson officer: Executive VP & CHRO C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Grant Hill director 121 ORANGE AVE, SUITE 1500, ORLANDO FL 32801
Valerie Oswalt officer: Executive Vice President 1 CAMPBELL PLACE, ATTN: LEGAL DEPARTMENT, CAMDEN NJ 08103
Mick J Beekhuizen officer: Senior Vice President & CFO C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Robert Furbee officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Randall W Larrimore director OLIN CORPORATION, 190 CARONDELET PLAZA, SUITE 1530, CLAYTON MO 63105
Christopher Foley officer: Senior Vice President CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
John P Bilbrey director