The Campbell's Company reported its second-quarter fiscal 2025 results on March 4, 2025, with net sales increasing 9% to $2.685 billion, primarily due to the Sovos Brands acquisition. However, organic net sales decreased by 2%, driven by lower net price realization with flat volume/mix.
Adjusted diluted earnings per share (EPS) decreased 8% to $0.74, while adjusted EBIT increased 2% to $372 million. The Meals & Beverages segment saw net sales rise 21% and operating earnings grow 18%, largely benefiting from the acquisition. In contrast, the Snacks segment experienced a 6% decrease in net sales and a significant 29% decline in operating earnings, primarily due to lower gross profit and higher marketing expenses.
Based on year-to-date performance and the dynamic consumer environment, Campbell's updated its full-year fiscal 2025 guidance. Reported net sales are now expected to increase 6% to 8% (down from 9% to 11%), organic net sales are projected to be down 2% to flat (down from 0% to 2%), adjusted EBIT is expected to grow 3% to 5% (down from 9% to 11%), and adjusted EPS is forecast in the range of $2.95 to $3.05 (down from $3.12 to $3.22). The company attributed the adjustment to slower-than-anticipated recovery in the Snacks business and the impact of the noosa divestiture.
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