The Campbell’s Company (CPB) Q4 2024 earnings summary

Executive summary

• Achieved double-digit year-over-year adjusted EBIT and EPS growth in Q4, with sequential volume improvement and margin expansion across both divisions.

• Sovos Brands acquisition completed March 12, 2024, contributed significantly to Q4 and FY24 results, with integration ahead of expectations.

• Meals and Beverages saw volume-driven growth and share gains, while Snacks showed sequential improvement despite competitive pressures.

• Fiscal 2025 guidance reflects steady progress, pragmatic expectations, and continued focus on consumer recovery and portfolio optimization.

• Returned $512 million to shareholders in FY24, including $445 million in dividends.

Financial highlights

• Q4 reported net sales up 11% year-over-year to $2.3B, driven by Sovos Brands; organic net sales down 1%.

• Adjusted EBIT up 36% to $329M and adjusted EPS up 26% to $0.63 in Q4; full-year adjusted EBIT up 6% to $1.5B and adjusted EPS up 3% to $3.08.

• Adjusted gross profit margin expanded 80 bps to 31.4% in Q4; full-year adjusted EBIT margin up to 15.1%.

• Generated $1.2 billion in operating cash flow for fiscal 2024; capital expenditures at $517 million; share repurchases $67 million.

• Q4 net interest expense rose to $83 million, reflecting higher debt for the acquisition.

Outlook and guidance

• Fiscal 2025 reported net sales expected to grow 9–11%, including full-year Sovos Brands and Pop Secret divestiture impact.

• Organic net sales growth expected flat to up 2%; adjusted EBIT growth projected at 9–11%.

• Adjusted EPS expected to rise 1–4% to $3.12–$3.22; Pop Secret divestiture expected to dilute EPS by $0.04.

• Core inflation anticipated in low single digits; $70 million in cost savings targeted for 2025.

• Capital expenditures planned at ~5% of net sales; leverage ratio expected below 4x.