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Jul 28, 2024
Campbell Soup Q4 2024 Earnings Report
Campbell Soup's Q4 2024 performance was marked by an 11% increase in net sales, driven by the Sovos Brands acquisition, though organic net sales decreased by 1%. Adjusted EBIT rose by 36%, and adjusted EPS increased by 26%.
Key Takeaways
Campbell Soup Company reported an 11% increase in net sales to $2.3 billion for the fourth quarter of fiscal year 2024, driven by the Sovos Brands acquisition. However, organic net sales decreased by 1%. Adjusted EPS increased by 26% to $0.63, while reported EPS was a loss of $0.01. The company provided full-year fiscal 2025 guidance, anticipating net sales growth of 9% to 11% and adjusted EPS growth of 1% to 4%.
Net sales increased by 11% to $2.3 billion, but organic net sales decreased by 1%.
Adjusted EBIT increased by 36% to $329 million, including the impact of the Sovos Brands acquisition.
Adjusted EPS increased by 26% to $0.63, while reported EPS was a loss of $0.01.
Full-year fiscal 2025 guidance anticipates net sales growth of 9% to 11% and adjusted EPS growth of 1% to 4%.
Campbell Soup
Campbell Soup
Campbell Soup Revenue by Segment
Revenue by Segment
Meals & Beverages Revenue
CapyFin.comSnacks Revenue
CapyFin.com Forward Guidance
Campbell's full-year fiscal 2025 guidance reflects a balance between sequential progress and pragmatism as the company continues to navigate the on-going consumer recovery.
Positive Outlook
- Net sales growth of 9% to 11% reflecting a full twelve-month contribution from Sovos Brands and the loss of eleven months of net sales from the divestiture of Pop Secret.
- Organic net sales flat to up 2% reflecting modestly positive volume/mix compared to fiscal 2024.
- Adjusted EBIT growth of 9% to 11%, including the contribution from the acquisition, the impact of the divestiture of Pop Secret.
- Inflation in the low-single digit range, with continued mitigation through a variety of levers including productivity improvements of approximately 3% and cost savings initiatives of approximately $70 million, inclusive of cost synergies related to the integration of Sovos Brands.
- Total company adjusted EBIT margin comparable to fiscal 2024.
Challenges Ahead
- Fiscal 2025 comprises 53 weeks, one additional week compared to fiscal 2024. The benefit of the 53rd week is included in the fiscal 2025 guidance below and is estimated to be worth approximately 2 points of growth to both reported and organic net sales and adjusted EBIT, along with $0.06 of adjusted EPS.
- The recent Pop Secret business divestiture closed on August 26, 2024, and accordingly, full-year guidance is inclusive of the lost sales and earnings of that business for the remaining eleven months of fiscal year 2025. The estimated impact of this divestiture is expected to reduce reported net sales growth by approximately 1% and have an expected dilutive impact of $0.04 to adjusted EPS in fiscal 2025.
- Snacks operating margin is expected to reflect modest growth inclusive of the near-term margin impact of the Pop Secret divestiture.
- Meals & Beverages operating margin is expected to be modestly lower reflecting the mix impact of Sovos Brands, partially offset by a modest margin improvement in the base business.
- Adjusted EPS growth of 1% to 4% with Sovos Brands expected to be approximately neutral and including the impact of the Pop Secret divestiture.
Revenue & Expenses
Visualization of income flow from segment revenue to net income