Campbell Soup Q2 2025 Earnings Report
Key Takeaways
Campbell Soup's Q2 2025 revenue increased 9% to $2.7 billion, primarily due to the Sovos Brands acquisition, while organic sales declined 2%. GAAP EPS was $0.58, down 15% from the prior year, and adjusted EPS decreased 8% to $0.74 due to higher net interest expenses. The company updated its full-year 2025 guidance to reflect lower expected organic sales growth.
Q2 2025 revenue increased 9% to $2.7 billion, but organic sales declined 2%.
GAAP EPS was $0.58, down from $0.68 in Q2 2024, while adjusted EPS decreased 8% to $0.74.
EBIT increased 3% to $327 million, and adjusted EBIT rose 2% to $372 million.
Updated FY2025 guidance now projects adjusted EPS of $2.95 to $3.05, down from the prior estimate of $3.12 to $3.22.
Campbell Soup
Campbell Soup
Campbell Soup Revenue by Segment
Forward Guidance
Campbell Soup revised its full-year 2025 guidance, expecting lower organic sales growth and adjusted EPS between $2.95 and $3.05, reflecting increased cost pressures and lower-than-expected snacking category performance.
Positive Outlook
- Net sales expected to grow 6% to 8% in FY2025.
- Cost savings program increased to $120 million for FY2025.
- Sovos Brands acquisition contributed positively to earnings.
- 53rd week in FY2025 expected to provide an additional sales boost.
- Company remains committed to shareholder returns through dividends and repurchases.
Challenges Ahead
- Organic net sales expected to be down 2% to flat for FY2025.
- Adjusted EPS guidance lowered to $2.95-$3.05 from prior $3.12-$3.22.
- Higher interest expenses due to increased debt levels impacting net earnings.
- Snacking segment underperformed, with a 6% revenue decline in Q2 2025.
- Cost inflation and supply chain expenses continue to pressure margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income