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Oct 27, 2024

Campbell Soup Q1 2025 Earnings Report

Campbell Soup's first-quarter results for fiscal year 2025 were reported, showing a 10% increase in net sales but a 1% decrease in organic net sales. The company reaffirms its full-year fiscal 2025 guidance and increases its quarterly dividend by 5%.

Key Takeaways

Campbell Soup's first-quarter fiscal 2025 results showed a mixed performance with a 10% increase in net sales driven by the Sovos Brands acquisition, while organic net sales decreased by 1%. Adjusted EBIT increased by 6%, and the company reaffirmed its full-year fiscal 2025 guidance. The quarterly dividend was increased by 5% to $0.39 per share.

Net sales increased by 10% to $2.8 billion, but decreased 1% on an organic basis.

Adjusted EBIT increased 6% to $432 million, including the impact of the Sovos Brands acquisition.

Adjusted EPS decreased 2% to $0.89.

Quarterly dividend increased by 5% to $0.39 per share.

Total Revenue
$2.77B
Previous year: $2.52B
+10.1%
EPS
$0.89
Previous year: $0.91
-2.2%
Organic Net Sales Growth
-1%
Gross Profit
$867M
Previous year: $788M
+10.0%
Cash and Equivalents
$808M
Previous year: $91M
+787.9%
Free Cash Flow
$115M
Previous year: $31M
+271.0%
Total Assets
$16.1B
Previous year: $12.3B
+31.5%

Campbell Soup

Campbell Soup

Campbell Soup Revenue by Segment

Forward Guidance

Campbell's is reaffirming its full-year fiscal 2025 guidance provided on August 29, 2024. Guidance ranges reflect a balance between expected sequential progress and pragmatism as the company continues to navigate the dynamic consumer environment and uneven category recovery.

Positive Outlook

  • Net Sales growth of +9% to +11%
  • Organic Net Sales growth of 0% to 2%
  • Adjusted EBIT growth of +9% to +11%
  • Adjusted EPS growth of +1% to +4%
  • Adjusted EPS between $3.12 to $3.22

Challenges Ahead

  • Dynamic consumer environment
  • Uneven category recovery
  • Potential delays in normalization of consumer environment
  • Slower pace of recovery
  • Unpredictable financial impact of actuarial gains or losses on pension and postretirement plans

Revenue & Expenses

Visualization of income flow from segment revenue to net income