The Campbell's Company · NASDAQ:CPB
The Campbell's — Campbell Soup Company — Q2 2025 Earnings Presentation
52 slides from The Campbell's's earnings presentation, Mar 5, 2025
Slide 1: Q2 Fiscal 2025 Earnings Presentation
Q2 Fiscal 2025 Earnings Presentation
Slide 2: Agenda
Rebecca Gardy Chief Investor Relations Officer Welcome Today’s Mick Beekhuizen Strategy and Agenda Chief Executive Officer Business Update Carrie Anderson Financial Results Chief Financial Officer and Outlook 2
Slide 3: Forward-looking Statements
Forward-looking Statements Safe Harbor Regarding Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations regarding our future results of operations, economi
Slide 4: Strategy and Business Update
Strategy and Business Update Mick Beekhuizen Chief Executive Officer 4
Slide 5: Q2 FY25 key messages
Q2 FY25 key messages Q2 earnings performance in line with expectations Weaker Snacks category growth resulted in slightly lower than anticipated top-line 10 out of 16 Leadership Brands held or grew share Reflecting the strength of our portfolio of advantaged brands Updated FY25 guidance reflecting d
Slide 6: Key Q2 and H1 FY25 results
Key Q2 and H1 vs. PY (except Adjusted EPS) Q2 FY25 H1 FY25 FY25 results Net Sales +9% +10% Organic Net Sales* (2)% (2)% Adjusted EBIT* +2% +4% Adjusted EPS* $0.74 $1.63 $ Consumption1 (1)% Flat *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 1/26/25 excluding Sovos Brands. 6
Slide 7: Continue to strengthen our portfolio of Leadership Brands
Continue to strengthen our portfolio of Leadership Brands Leadership Brands represented ~90% of total Q2 FY25 Net Sales = Grew or held $ share vs. PY2 Meals & Leadership Beverages1 1 Brands +1% $ consumption Flat $ share Flat $ consumption Snacks Flat (1)% $ consumption $ share Flat $ share 1 Consum
Slide 8: Demonstrated brand strength during holiday season
Demonstrated brand strength during holiday season Mixed holiday season with soft category performance $ Consumption, $ Share Growth Total Meals & Beverages Snacks CPB Key Seasonal Categories during Holiday Period1 Holiday Condensed Categories2 Broth / Stock PF Cookies PF Stuffing Cooking Categories
Slide 9: Consumption growth reflects strength of Rao's
Meals & Beverages Consumption growth reflects strength of Rao's Volume growth within M&B Division amplified with Sovos Brands addition Q2 FY25 H1 FY25 vs. PY vs. PY Pro forma Pro forma Reported Reported combined2 combined2 Organic Net Sales* (1)% Flat (1)% +1% Volume/mix +1% +2% +1% +3% Dollar consu
Slide 10: Q2 FY25 Soup portfolio performance
Meals & Beverages Q2 FY25 Soup portfolio performance Q2 FY251 Wet Soup Broth Condensed RTS $ Consumption Category (0.4)% 5% (4)% (3)% Campbell’s (1)% 5% (3)% (5)% $ Share (0.5) pts Flat +1 pt (1) pt 1 Circana Total US MULO+, 13 weeks ending 1/26/25. 10
Slide 11: $1B Sauces portfolio momentum continues
Meals & Beverages $1B Sauces portfolio momentum continues Continued strength on Rao’s and steady Prego performance Campbell’s Italian Sauce Consumption1 Category $ Consumption 1 $ Consumption 1 Consumption1 +5% +3% Dollars Volume +7% +3% +1.5% Dollars Share change1 $ Share Brand in Italian $ Share B
Slide 12: Rao's sauce has ample runway for sustained growth
Meals & Beverages Rao’s sauce has ample runway for sustained growth Building brand awareness Continued product innovation +10 New Sauce SKUs Launched in L52wks 12
Slide 13: Category softness reflected Q2 performance
Snacks Category softness reflected Q2 performance Organic Net Sales impacted by ~ 1.5pt headwind from Partner/Contract brands and competitive pressure in select categories Q2 FY25 H1 FY25 vs. PY vs. PY Organic Net Sales* (3)% (3)% Volume/mix (2)% (2)% Dollar consumption1 (1)% (1)% *See Non-GAAP reco
Slide 14: Shares mixed in Q2; pressure focused in Salty/Crackers
Snacks Shares mixed in Q2; pressure focused in Salty/Crackers Held1 Cookies Fresh Bakery Deli Salty Crackers Strong action plans to navigate dynamic snacking categories Elevated innovation against consumer macro trends, including Better for You choices (e.g., Kettle Brand Avocado Oil) and Enhanced V
Slide 15: Snacks innovation: expanding consumer reach
Snacks Snacks innovation: Expanding consumer reach through new flavors, formats and price points Enhanced Value Innovative Flavor & Forms Better for You 15
Slide 16: Core Focus Areas
Support growth of our Leadership Brands 1 through highly relevant, compelling marketing and innovation Core Focus Continue to improve efficiency and effectiveness 2 across the organization to support top-line growth and healthy margin profile Areas 3 Maintain disciplined capital allocation strategy
Slide 17: Financial Results and Outlook
Financial Results and Outlook Carrie Anderson Chief Financial Officer 17
Slide 18: Earnings in-line with our expectations, top-line slightly behind
$ Millions, except per share Q2 FY25 Key Financial Results Earnings in-line with our expectations, top-line slightly behind Sovos Brands slightly accretive to adjusted EPS Net Sales Adjusted EBIT* Adjusted EPS* $2,685 $364 $372 $0.80 $2,456 $0.74 +2% (8)% +9% vs. PY vs. PY vs. PY Q2 FY24 Q2 FY25 Q2
Slide 19: Q2 FY25 Net Sales Bridge
$ Millions Q2 FY25 Net Sales Bridge Sovos Brands led Net Sales growth; organic results reflect slower category recovery Organic Net Sales decreased with lower net price realization and flat volume/mix 11 pts $2,685 $2,456 0 pts (2) pts $2,380 0 pts (2)% +9% vs. PY vs. PY Q2 FY24 Net Sales Volume/mix
Slide 20: Q2 FY25 Adjusted Gross Profit Margin Bridge
Q2 FY25 Adjusted Gross Profit Margin* Bridge Adj. gross profit margin decrease reflects lower base business margin and the impact of the acquisition Productivity improvements and cost savings partially offset net price, inflation and other supply chain costs in base business + 20 bps (110) bps 31.4%
Slide 21: Q2 FY25 Other Operating Items
$ Millions Q2 FY25 Other Operating Items Other operating items as % of Net Sales remained consistent to PY Adjusted Marketing & Selling Expenses* Adjusted Administrative Expenses* $255 1 $159 $156 1 $216 A&C +25% vs. PY1 +18% (2)% vs. PY vs. PY 9% 9% 6% 6% % of Net Sales: 8% % of Net Sales: Q2 FY24
Slide 22: Adj. EBIT +2% driven by acquisition contribution
Q2 FY25 Adjusted EBIT* Bridge $ Millions Adj. EBIT +2% driven by acquisition contribution Lower adj. EBIT margin primarily reflects lower adj. gross margin and higher brand investments $43 ($39) $364 $3 $1 $372 +2% vs. PY Q2 FY24 Adjusted Gross Adjusted Adjusted Adjusted Other Q2 FY25 Profit Impact*
Slide 23: Adj. EPS moved lower with higher interest expense
Q2 FY25 Adjusted EPS* Bridge Adj. EPS moved lower with EBIT growth more than offset by higher interest expense The impact of the Sovos Brands acquisition was slightly accretive to adj. EPS $0.80 $0.02 ($0.09) $0 $0 $0.74 (8)% vs. PY Q2 FY24 Adjusted EBIT* Interest Adjusted Taxes* Share Impact Q2 FY2
Slide 24: Q2 FY25 Meals & Beverages results
$ Millions Q2 FY25 Meals & Beverages results Net Sales Operating Earnings $3,385 $2,786 +18% vs. PY $1,679 +22% +18% vs. PY $628 $1,382 vs. PY $534 +21% $291 vs. PY $247 Q2 Q2 YTD Q2 YTD Q2 FY24 FY25 FY24 FY25 Q2 Q2 YTD Q2 YTD Q2 FY24 FY25 FY24 FY25 Vol/Mix (2)% 1% (4)% 1% Operating Margin 17.9% 17.
Slide 25: Q2 FY25 Snacks results
$ Millions Q2 FY25 Snacks results Net Sales Operating Earnings $2,188 $2,072 (20)% (6)% vs. PY vs. PY (29)% (5)% vs. PY $322 $1,074 $1,006 vs. PY $256 $161 $114 Q2 Q2 YTD Q2 YTD Q2 Q2 Q2 YTD Q2 YTD Q2 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Vol/Mix (2)% (2)% (3)% (2)% Operating Margin 15.0% 11.3% 14
Slide 26: Capital Allocation
$ Millions Capital Allocation Strong operating cash flow and a disciplined focus on shareholder value creation Returned $283M to shareholders in FY25 year-to-date. Dividend to increase by 5% to $0.39 per share beginning with Q3 FY25 payout Net Cash Flows from Operations Capital Allocation $737 Q2 YT
Slide 27: FY25 Updated Guidance
Outlook FY25 Updated Guidance FY25 Assumptions $ Millions, Except Per Share • Guidance updated for divestiture of noosa on Feb. 24, 2025, FY24 Prior Updated with a ~(1)pt. and ($0.01) impact on FY25 Net Sales growth Results FY25 Guidance FY25 Guidance and adj. EPS, respectively • Prior/current guida
Slide 28: Q2 FY25 and looking ahead
Wrap Up Q2 FY25 and looking ahead Q2 organic results mixed with overall stable market shares on weaker category growth Strong performance by Rao’s expected to continue; Acquisition expected to be accretive to full-year adj. EPS FY25 Guidance lowered to reflect slower than anticipated recovery of sna
Slide 29: Q&A
Q&A Mick Beekhuizen Carrie Anderson President & Chief Executive Officer EVP & Chief Financial Officer 29
Slide 30: Appendix
—— Appendix
Slide 31: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of January 26, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,67
Slide 32: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) First Half % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of January 26, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 3,385 $
Slide 33: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) First Quarter % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of October 27, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,706
Slide 34: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter % Change Net Sales, Impact of Organic Net Sales, Organic January 28, 2024 As Reported Currency Net Sales As Reported Net Sales Meals & Beverages $ 1,382 $ - $ 1,382 (2%) (2%) Snacks 1,074 - 1,074 0% 1% Total Net Sales
Slide 35: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) First Half % Change Net Sales, Impact of Organic Net Sales, Organic January 28, 2024 As Reported Currency Net Sales As Reported Net Sales Meals & Beverages $ 2,786 $ 3 $ 2,789 (3%) (3%) Snacks 2,188 (1) 2,187 0% 1% Total Net Sales $
Slide 36: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Three Months Ended Three Months Ended January 26, 2025 January 28, 2024 Net Earnings, as reported $ 173 $ 203 Taxes 74 68 Interest, net 80 46 Earnings before interest and taxes, as reported $ 327 $ 317 36
Slide 37: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Second Quarter EBIT EBIT Margin % Earnings Diluted EPS 2025 – As Reported $ 327 12.2% $ 173 $ 0.58 Costs associated with cost savings and optimization initiatives 25 19 0.06 Commodity mark-to-market gains (
Slide 38: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) First Half EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 694 12.7% $ 391 $ 1.30 Costs associated with cost savings and optimization initiatives 60 46 0.15 Commodity mark-to-market gains (18)
Slide 39: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter Gross Profit GP % EBT Tax Tax Rate 2025 – As Reported $ 819 30.5% $ 247 $ 74 30.0% Costs associated with cost savings and optimization initiatives 10 25 6 Commodity mark-to-market gains (14) (14) (4) Accelerated amort
Slide 40: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter Marketing & Selling Other Expenses / Expenses (Income) 2025 – As Reported $ 256 $ 41 Costs associated with cost savings and optimization initiatives (1) - Impairment charges - (26) Accelerated amortization - (7) 2025
Slide 41: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter Administrative R&D Expenses Expenses Total 2025 – As Reported $ 165 $ 25 $ 190 Costs associated with cost savings and optimization initiatives (8) (1) (9) Certain litigation expenses (1) - (1) 2025 – Adjusted $ 156 $
Slide 42: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Second Quarter – Adjusted Diluted EPS Impact from Adjusted EBIT EBIT 2025 – Adjusted $ 372 2024 – Adjusted 364 $ Change $ 8 Deduct: 2024 Adjusted tax rate impact on EBIT $ (2) Impact to Net Earnings $ 6 Sec
Slide 43: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Adjusted Diluted EPS Impact from Change in Adjusted Tax Rate Second Quarter 2025 – Adjusted EBT $ 292 Decrease (Increase) in Adjusted Tax Rate 0.5% Adjusted EBT multiplied by the Change in Adjusted Tax Rate
Slide 44: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Q3 Fiscal 2024 Organic Sales Base for Q3 Fiscal 2025 Guidance Third Quarter Net Sales, Impact of Organic Net Sales Base for April 28, 2024 As Reported Divestitures* Q3 FY2025 Guidance Meals & Beverages $ 1,272 $ (21) $ 1,251 Snacks
Slide 45: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Q4 Fiscal 2024 Organic Sales Base for Q4 Fiscal 2025 Guidance Fourth Quarter Net Sales, Impact of Organic Net Sales Base for July 28, 2024 As Reported Divestitures* Q4 FY2025 Guidance Meals & Beverages $ 1,200 $ (47) $ 1,153 Snacks
Slide 46: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Fiscal 2024 Organic Sales Base for Fiscal 2025 Guidance Full Year Net Sales, Impact of Organic Net Sales Base July 28, 2024 As Reported Divestitures* for FY2025 Guidance Meals & Beverages $ 5,258 $ (68) $ 5,190 Snacks 4,378 (111) 4,
Slide 47: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Full Year EBIT Earnings Diluted EPS* 2024 – As Reported $ 1,000 $ 567 $ 1.89 Costs associated with cost savings and optimization initiatives 109 83 0.28 Pension and postretirement actuarial losses 33 25 0.08 Commodity mark-to-market
Slide 48: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Net Debt January 28, 2024 October 27, 2024 January 26, 2025 Short-Term Borrowings $ 14 $ 1,212 $ 1,179 Long-Term Debt 4,506 6,705 6,496 Total Debt $ 4,520 $ 7,917 $ 7,675 Less: Cash and Cash Equivalents (169) (808) (829) Net Debt $
Slide 49: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures (a) (b) (c) = (a)-(b)+(c) ($ millions) Trailing Twelve Twelve Months Months Ended Ended Six Months Ended Six Months Ended (TTM) July 30, 2023 January 29, 2023 January 28, 2024 January 28, 2024 Net Earnings, as reported $ 858 $ 529 $ 437 $ 766 Ta
Slide 50: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures (a) (b) (c) (d) = (a)-(b)+(c)+(d) Twelve Months Trailing Twelve ($ millions) Ended Three Months Ended Three Months Ended Sovos November Months Ended (TTM) July 28, 2024 October 29, 2023 October 27, 2024 2023 – March 11, 2024 October 27, 2024 Net
Slide 51: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures (a) (b) (c) (d) = (a)-(b)+(c)+(d) Twelve Months Trailing Twelve ($ millions) Ended Six Months Ended Six Months Ended Sovos February Months Ended (TTM) July 28, 2024 January 28, 2024 January 26, 2025 2024 – March 11, 2024 January 26, 2025 Net Ear
Slide 52: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Second Quarter Net Sales Meals & Beverages Net Sales 2025 $ 1,679 Add: Impact of Currency 6 Meals & Beverages $ 1,685 Meals & Beverages Net Sales 2024 $ 1,382 Add: Sovos Brands, Inc. October 30, 2023 – January 28, 2024 304 Pro Forma
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