Campbell’s Q3 Fiscal 2025 Results Announced

• Net sales surged 4% to $2.5 billion, with a 1% boost organically.
• Earnings Before Interest and Taxes (EBIT) reached $161 million. Adjusted EBIT increased 2% to $362 million, factoring in the Sovos Brands acquisition.
• Earnings Per Share (EPS) came in at $0.22. Adjusted EPS dipped 3% to $0.73.
• Year-to-date cash flow from operations hit $872 million, with $403 million returned to shareholders via dividends and share repurchases.
• The company is maintaining its full-year fiscal 2025 guidance, with adjusted EPS expected to be at the lower end of the range, excluding tariff impacts. Assuming current tariffs remain, the estimated net incremental headwind could be between $0.03 and $0.05 per share.

CAMDEN, N.J. – In a market update released today,
The Campbell’s Company (NASDAQ:CPB) disclosed its financial results for the third quarter of fiscal 2025, which concluded on April 27, 2025. All comparisons are against the same period last year. The Sovos Brands, Inc. (Sovos Brands) acquisition, completed on March 12, 2024, is a key factor in these figures.

A Word from the CEO


Mick Beekhuizen, Campbell’s President and CEO, shared, “We achieved solid third-quarter results that surpassed our projections, partly due to advantageous shipment timing. In Meals & Beverages, we see rising consumption across all income segments. Consumers are increasingly cooking at home, reminiscent of early 2020, turning to our brands for value, quality, and convenience. Performance in Snacks was varied across the portfolio, and while we’re seeing success with some strong new product launches, we’re refining our strategies to ensure we’re competitive across our entire brand range. Our overall performance highlights our robust execution and disciplined cost management in a dynamic operating landscape. We’re continually adjusting our organization and capabilities to better leverage our scale for growth and deliver long-term value.”

Items Influencing Comparability


The table below summarizes items affecting comparability in each period. A detailed reconciliation of the reported (GAAP) financial data to the adjusted data is available at the end of this press release.

Third-Quarter Highlights


Overall, the company’s net sales for the quarter climbed 4% to $2.5 billion compared to the same period in 2024, driven by the Sovos Brands deal. Organic sales, which exclude the impact of acquisitions, showed a 1% increase, reaching $2.3 billion. This was primarily fueled by a 2% rise in volume/mix, partly offset by a planned decrease in net price realization.

The gross profit saw fluctuations, decreasing from $732 million to $728 million. Adjusted gross profit experienced a slight increase, from $740 million to $745 million. The gross profit margin decreased by 110 basis points, mainly due to cost inflation in the supply chain, unfavorable net price realization, and the acquisition’s influence. These impacts were somewhat offset by productivity gains in the supply chain, cost savings initiatives, and favorable volume/mix dynamics.

Marketing and selling expenses rose by 5% to $216 million, accounting for about 9% of net sales. Adjusted marketing and selling expenses also increased by 5% to $207 million, driven by the acquisition.

Administrative expenses dropped by 22% to $162 million. Adjusted administrative expenses declined by 4% to $150 million, mainly due to cost-saving efforts, offset by higher general administrative expenses, inflation, and the acquisition.

Other expenses amounted to $160 million, a significant change from $30 million the previous year, largely due to a non-cash impairment charge of $150 million tied to the Snyder’s of Hanover trademark. On an adjusted basis, these expenses were $4 million, down from $8 million.

EBIT decreased to $161 million from $248 million, majorly influenced by the above-mentioned impairment charge. Adjusted EBIT increased 2% to $362 million, primarily due to the acquisition.

Net interest expense rose to $80 million from $66 million, due to a larger debt portfolio and higher interest rates. The effective tax rate decreased to 18.5% from 26.9%.

EPS experienced a decrease, dropping to $0.22 per share from $0.44 per share. Adjusted EPS fell by 3% to $0.73 per share, reflecting higher adjusted net interest expense.

Cash Flow and Shareholder Return


Cash flow from operations for the nine months ending was $872 million, slightly down from $897 million the previous year, mainly due to shifts in working capital. Capital expenditures for the year-to-date were $296 million, versus $376 million last year. The company has returned value to shareholders, paying out $343 million in cash dividends and repurchasing its stock for approximately $60 million during the year. Remaining under its anti-dilutive share repurchase program, the company has $200 million available, coupled with approximately $301 million remaining under the September 2021 strategic share repurchase program.

Cost Savings Program


Campbell’s has so far realized approximately $110 million in savings under the $250 million cost savings program announced in September 2024.

Fiscal Year 2025 Outlook:


Based on year-to-date performance, Campbell’s is maintaining its fiscal year 2025 guidance established on March 5, 2025, excluding tariff-related impacts. Adjusted EBIT and adjusted EPS are predicted to be at the lower end of the guidance range due to slower-than-expected recovery in the Snacks business.

The current tariff scenario is evolving due to recent legal challenges. Despite this, assuming the existing tariffs remain in effect, the company estimates that the net cost increase related to tariffs could amount to an additional $0.03 to $0.05 per share for fiscal 2025 adjusted EPS.

Fiscal 2025 encompasses 53 weeks, an additional week compared to fiscal 2024. The benefit of the 53rd week is integrated into the company’s fiscal 2025 guidance (except for organic net sales). This is estimated to add approximately 2 percentage points to reported net sales and adjusted EBIT, alongside around $0.05 to adjusted EPS.

For additional guidance details, see the investor presentation available at https://investor.thecampbellscompany.com/events-presentations.

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