Campbell Soup Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −13.34%.
Did CPB Beat Earnings? Q2 2025 Results
Campbell's delivered a mixed fiscal second quarter, beating on the bottom line while falling short on revenue as acquisition-fueled growth masked underlying weakness across its core business. Adjusted EPS came in at $0.74, ahead of the $0.72 consensus estimate by 2.18%, though that figure still represented an 8% year-over-year decline as sharply higher interest expense, $80 million versus $46 million in the prior year, weighed on profitability following the Sovos Brands acquisition. Net sales rose 9.3% to $2.69 billion, missing the $2.74 billion consensus by 1.85%, with organic sales slipping 2% as the Snacks segment posted a 6% reported sales decline and softness in Goldfish crackers and Snyder's of Hanover pretzels pressured margins. The results prompted management to meaningfully cut full-year guidance, narrowing adjusted EPS expectations to $2.95 to $3.05 from a prior range of $3.12 to $3.22, and reducing net sales growth guidance to 6% to 8%, with shares falling on the news as investors also weighed potential tariff exposure the company declined to quantify in its outlook.
- Sovos Brands acquisition contributed to 9% reported net sales growth
- Organic net sales declined 2% driven by lower net price realization with flat volume/mix
- Snacks segment organic net sales decreased 3% driven by declines in third-party partner brands, Goldfish crackers and Snyder's of Hanover pretzels
- Higher net interest expense of $80 million vs $46 million reflecting higher debt levels
- Cost inflation and other supply chain costs pressured gross profit margins
- Supply chain productivity improvements and cost savings initiatives partially offset margin pressure
- Adjusted gross profit margin decreased 100 basis points to 30.4%
“Second quarter earnings were in line with our expectations despite the dynamic operating environment. Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialize during the quarter, and we now have a more muted second half expectation. As a result, we are updating our full-year guidance. We remain confident in our ability to successfully navigate the current consumer landscape with our portfolio of advantaged leadership brands, talented team and track record of execution. We have a strong foundation to deliver long-term sustainable, profitable growth and shareholder returns.”
Campbell's CEO, on the earnings call
Forward Guidance & Outlook
Campbell's lowered its full-year fiscal 2025 guidance: net sales growth of approximately 6% to 8% (previously 9% to 11%); organic net sales expected in the range of down 2% to flat (previously 0% to 2%); adjusted EBIT growth of 3% to 5% (previously 9% to 11%); and adjusted EPS of $2.95 to $3.05 (previously $3.12 to $3.22), or approximately down 4% to down 1% versus prior year. Net interest expense is expected to be $325 to $330 million. Full-year cost savings are increased to $120 million. The guidance includes the benefit of a 53rd week (estimated ~2 points of growth to reported net sales and adjusted EBIT, plus ~$0.07 of adjusted EPS) and reflects the noosa yoghurt divestiture (~1 percentage point impact on net sales, ~$0.01 dilutive to adjusted EPS). Guidance does not reflect any impact from potential import tariffs or retaliatory trade actions.
CPB YoY Financials
CPB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.