The Campbell’s Company (CPB) Q1 2025 earnings summary

Executive summary

• Net sales rose 10% year-over-year to $2.77B–$2.8B, driven by the Sovos Brands acquisition, while organic net sales declined 1%.

• Adjusted EBIT increased 6% to $432M, but adjusted EPS declined 2% to $0.89 due to higher interest expense from increased debt.

• Leadership brands, including Rao's and Prego, showed strong performance, with Rao's delivering double-digit growth and share gains.

• CEO Mark Clouse announced his retirement, with Mick Beekhuizen named as successor effective February 1, 2025.

• Major portfolio moves included the Sovos Brands acquisition, Pop Secret divestiture, and agreement to sell noosa yoghurt.

Financial highlights

• Net sales reached $2.77B–$2.8B (+10% year-over-year); organic net sales declined 1%.

• Adjusted EBIT was $432M (+6%); adjusted EPS $0.89 (-2%); adjusted gross profit margin 31.4% (down 70 bps).

• Operating cash flow was $225M, up from $174M year-over-year.

• Dividend payments totaled $116M, with a 5% increase to $0.39/share effective January 2025.

• $54M in share repurchases; capital expenditures ranged from $110M to $143M in Q1.

Outlook and guidance

• Full-year fiscal 2025 guidance reaffirmed: net sales growth 9–11%, adjusted EPS $3.12–$3.22.

• Sovos Brands expected to be accretive to adjusted EPS for FY25; Q2 organic net sales expected flat, adjusted EPS in low $0.70s.

• Guidance includes full-year Sovos, 53rd week benefit, and Pop Secret divestiture impact.

• Cost savings initiatives projected to deliver $250M annual savings by 2028, with $30M realized to date.

• Pending divestiture of noosa not yet reflected in guidance; expected to close in Q1 calendar 2025.