Campbell Soup Co (Campbell Soup Co) Gross Margin %

: 31.60% (As of Jan. 2024)

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Gross Margin % is calculated as gross profit divided by its revenue. Campbell Soup Co's Gross Profit for the three months ended in Jan. 2024 was $776 Mil. Campbell Soup Co's Revenue for the three months ended in Jan. 2024 was $2,456 Mil. Therefore, Campbell Soup Co's Gross Margin % for the quarter that ended in Jan. 2024 was 31.60%.

Warning Sign:

Campbell Soup Co gross margin has been in long-term decline. The average rate of decline per year is -2.8%.

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

CPB' s Gross Margin % Range Over the Past 10 Years
Min: 30.68 Med: 34.47 Max: 41.84
Current: 31.15

During the past 13 years, the highest Gross Margin % of Campbell Soup Co was 41.84%. The lowest was 30.68%. And the median was 34.47%.

CPB's Gross Margin % is ranked better than
64.55% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 24.995 vs CPB: 31.15

Campbell Soup Co had a gross margin of 31.60% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Campbell Soup Co was -2.80% per year.

Campbell Soup Co Gross Margin % Historical Data

The historical data trend for Campbell Soup 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.

Campbell Soup Co Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Gross Margin %

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33.22

34.51

33.16

30.68

31.17

Campbell Soup Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															30.54	29.97	31.72	31.29	31.60

Competitive Comparison

For the Packaged Foods subindustry, Campbell Soup 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.

Campbell Soup Co Gross Margin % Distribution

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

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

Campbell Soup Co Gross Margin % Calculation

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

Campbell Soup Co's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )	=	Gross Profit (A: Jul. 2023 )	/	Revenue (A: Jul. 2023 )
	=	2917	/	9357
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9357 - 6440)	/	9357
	=	31.17 %

Campbell Soup Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	776	/	2456
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2456 - 1680)	/	2456
	=	31.60 %

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.

Campbell Soup Co (NYSE: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

Campbell Soup Co had a gross margin of 31.60% for the quarter that ended in Jan. 2024 => 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.

Campbell Soup Co Gross Margin % Related Terms

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Campbell Soup Co (Campbell Soup Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Campbell Soup Co (NYSE:CPB) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CPB:Mexico CSC:Germany CSC:Germany CSC:Germany C1PB34:Brazil

Address

1 Campbell Place, Camden, NJ, USA, 08103-1799

Website

https://www.campbellsoupcompany.com

With a history that dates back around 150 years, Campbell Soup is now a leading manufacturer and marketer of branded convenience food products, most notably soup. The firm's product assortment includes well-known brands like Campbell's, Pace, Prego, Swanson, V8, and Pepperidge Farm. Following the sale of its international snacking operations in calendar 2019, the firm derives nearly all of its sales from the United States. Campbell has made a handful of acquisitions to reshape its product mix in the past several years, including the tie-up with Snyder's-Lance in March 2018, which enhanced its exposure to the faster-growing on-trend snack food aisle, complementing its Pepperidge Farm lineup.

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