• Organic Net Sales Growth: 1% driven by volume growth.

• Net Sales Growth: 4% reflecting organic growth and contribution from Rao's.

• Adjusted EBIT: Increased 2% versus prior year.

• Adjusted EPS: Down 3% to $0.73.

• Meals & Beverages Organic Net Sales: Increased 6% for the quarter.

• Snacks Organic Net Sales: Declined 5% driven by lower volume and mix.

• Operating Cash Flow Year-to-Date: $872 million.

• Capital Expenditures Year-to-Date: $296 million.

• Net Debt-to-Adjusted EBITDA Leverage Ratio: 3.6 times.

• Cost Savings Program: $110 million of total savings delivered.

• Warning! GuruFocus has detected 5 Warning Signs with CPB.

Release Date: June 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Campbell's Co (NASDAQ:CPB) exceeded third-quarter earnings expectations, driven by strong performance in the Meals & Beverages division.

• Organic net sales growth of 1% was achieved, marking five consecutive quarters of flat or positive volume across the enterprise.

• The company's soup portfolio continued strong performance, with Campbell's total wet soup growing dollar-share by 0.4 points.

• The Meals & Beverages division saw a 6% increase in organic net sales, led by volume and mix growth.

• The integration of Sovos Brands into Campbell's ERP system is expected to unlock additional back-office savings.

Negative Points

• The Snacks business faced mixed performance due to continued category softness and an increasingly competitive environment.

• Adjusted EPS was down 3% compared to the prior year, impacted by higher adjusted interest expense.

• The company expects adjusted earnings to be at the low end of the guidance range due to slower-than-anticipated recovery in the Snacks business.

• Snacks organic net sales decreased by 5%, driven by lower volume and mix.

• The company faces potential headwinds from tariffs, estimated to impact fiscal '25 adjusted EPS by up to 3 to 5 cents per share.

Q & A Highlights

Q: How much of the pressure in the Snacks segment is due to overall category trends versus Campbell's in-market execution, and what steps is the company taking to address these issues? A: Mick Beekhuizen, CEO, explained that about two-thirds of the pressure is due to worsening aggregate categories, while one-third is due to in-market performance. The company is focusing on innovation, distribution expansion, and price pack architecture to address these challenges. They are also working on reigniting core brands like Goldfish with advertising and strategic promotional activities.