The Campbell's Company · NASDAQ:CPB
The Campbell's — Campbell Soup Company — Q3 2025 Earnings Presentation
51 slides from The Campbell's's earnings presentation, Jun 2, 2025
Slide 1: Q3 Fiscal 2025 Earnings Presentation
Q3 Fiscal 2025 Earnings Presentation
Slide 2: Agenda
Rebecca Gardy Chief Investor Relations Officer Welcome Today’s Mick Beekhuizen 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: Business Update
Business Update Mick Beekhuizen Chief Executive Officer 4
Slide 5: Q3 FY25 key messages
Q3 FY25 key messages Q3 earnings performance exceeded expectations M&B strength outweighed continued challenges in Snacks Stable share and consumption in Leadership Brands Driven by Meals & Beverages brand strength as at home cooking rises FY25 guidance reaffirmed, with adjusted EPS expected to be a
Slide 6: Key Q3 and YTD FY25 results
Key Q3 and vs. PY Q3 FY25 YTD FY25 YTD FY25 Organic Net Sales* +1% (1)% results Net Sales +4% +8% Adjusted EBIT* +2% +4% Adjusted EPS* (3)% (4)% $ Consumption 1 (1)% Flat *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 04/27/25 including Sovos Brands. 6
Slide 7: M&B Leadership Brands continued to outpace categories
M&B Leadership Brands continued to outpace categories Leadership Brands represented ~90% of total Q3 FY25 Net Sales = Grew or held $ share vs. PY2 Meals & Leadership Beverages1 1 Brands +2% $ consumption +0.4 $ share Flat $ consumption Snacks Flat (3)% $ consumption $ share (0.2) $ share 1 Consumpti
Slide 8: Leadership Brands drive consumption growth
Meals & Beverages Leadership Brands drive consumption growth Organic Net Sales benefitted by strength in unmeasured channels and shipment timing Q3 FY25 YTD FY25 vs. PY vs. PY Pro forma Reported Reported combined2 Organic Net Sales* +6% +1% +2% Volume/mix +7% +3% +4% Dollar consumption1 +2% +2% +2%
Slide 9: Q3 FY25 Soup portfolio performance
Meals & Beverages Q3 FY25 Soup portfolio performance Increased at-home cooking driving strength in broth and condensed soup Q3 FY251 Wet Soup Broth Condensed RTS $ Consumption Category 3% 7% 1% 1% Campbell’s 4% 15% 2% (2)% $ Share +0.4pts +3 pts +1 pt (1) pt 1 Circana Total US MULO+, 13 weeks ending
Slide 10: Unlocking Growth in Q3 in Campbell's Cooking Condensed
Unlocking Growth in Q3 in Campbell’s Cooking Condensed Highest Q3 volume growth in 4 years Highest HHP gain in ANY quarter in 4 years Gained 1M new cooking buyers (51% millennials) Increased brand perception among millennial families 10
Slide 11: Italian sauces portfolio maintains category leadership
Meals & Beverages Italian sauces portfolio maintains category leadership Campbell’s Italian Sauce Consumption1 Category $ Consumption 1 $ Consumption 1 Consumption1 +1% (2)% Dollars Volume +2% Flat +2% Dollars Share change1 $ Share Brand in Italian $ Share Brand in Italian +1% (0.4)pts (0.8)pts Sauc
Slide 12: Rao's sauce has significant long-term upside
Rao’s sauce has significant long-term upside Runway in both distribution and brand awareness Distribution Awareness Total Points of Average Household Aided Distribution1 SKU’s1 Penetration2 Awareness3 ~63% ~65% ~53% ~68% vs. vs. vs. vs. 1 Source: Circana, Italian Sauce Only, MULO+ 52wks we 04.27.25
Slide 13: Snacks facing continued competitive pressure
Snacks Snacks facing continued competitive pressure Q3 Organic Net Sales includes headwind from partner/contract brands Q3 FY25 YTD FY25 vs. PY vs. PY Organic Net Sales* (5)% (4)% Volume/mix (5)% (3)% Dollar consumption1 (3)% (2)% *See Non-GAAP reconciliation. 1 Circana Total US MULO+, 13 weeks endi
Slide 14: Mixed share performance across Snacks portfolio
Snacks Mixed share performance across Snacks portfolio Held1 Fresh Bakery Cookies Pretzels Chips Crackers Brand-specific action plans to navigate competitive snacking categories Maintain momentum in Bakery & Cookies with elevated Pepperidge Farm core plus innovation Accelerate trial build on Snack F
Slide 15: Unlocking Growth in Pepperidge Farm
Unlocking Growth in Pepperidge Farm Pepperidge Farm Bakery highest volume and dollar growth in 9 quarters driven by Farmhouse Brioche platform Pepperidge Farm Milano Cookies strongest household penetration gains in 9 quarters driven by White Chocolate platform launch
Slide 16: Wrap up
Solid Q3 results with strong Meals & Beverages performance and mixed results in Snacks Wrap up Near-term focus on in-market execution while actively mitigating potential tariff impacts Building a stronger foundation by improving efficiency and effectiveness across the organization to facilitate grow
Slide 17: Financial Results and Outlook
Financial Results and Outlook Carrie Anderson Chief Financial Officer 17
Slide 18: Q3 FY25 Key Financial Results
$ Millions, except per share Q3 FY25 Key Financial Results Earnings ahead of our expectations driven by better topline Sovos Brands accretive to adjusted EPS Net Sales Adjusted EBIT* Adjusted EPS* $2,475 $2,369 $354 $362 $0.75 $0.73 +2% (3)% +4% vs. PY vs. PY vs. PY Q3 FY24 Q3 FY25 Q3 FY24 Q3FY25 Q3
Slide 19: Q3 FY25 Net Sales Bridge
$ Millions Q3 FY25 Net Sales Bridge Sovos acquisition moved into organic mid-Q3 Volume-led Organic Net Sales growth with some timing benefit in Meals & Beverages 4 pts $2,475 2 pts (1) pt $2,369 0 pts +1% +4% vs. PY vs. PY Q3 FY24 Net Sales Volume / Mix Net Price Realization Q3 FY25 Organic Currency
Slide 20: Q3 FY25 Adjusted Gross Profit Margin Bridge
Q3 FY25 Adjusted Gross Profit Margin* Bridge Adj. gross profit margin decrease driven primarily from lower base business margin Productivity improvements and cost savings initiatives partially offset inflation /other and net price realization + 60 bps (80) bps 31.2% (270) bps + 60 bps 30.2% (10) bps
Slide 21: Q3 FY25 Other Operating Items
$ Millions Q3 FY25 Other Operating Items Other operating items as % of Net Sales improved vs. PY Adjusted Marketing & Selling Expenses* Adjusted Administrative Expenses* $207 1 $156 1 $198 1 $150 1 A&C +3% vs. PY1 +5% (4)% vs. PY vs. PY 8% 8% 7% 6% % of Net Sales: 8% % of Net Sales: Q3 FY24 Q3 FY25
Slide 22: Q3 FY25 Adjusted EBIT Bridge
Q3 FY25 Adjusted EBIT* Bridge $ Millions Adj. EBIT growth driven by acquisition contribution Lower adj. EBIT margin primarily reflects lower adj. gross margin $5 ($9) $4 $362 $8 $354 +2% vs. PY Q3 FY24 Adjusted Gross Adjusted Adjusted Adjusted Other Q3 FY25 Profit Impact* Marketing & Administrative
Slide 23: Q3 FY25 Adjusted EPS Bridge
Q3 FY25 Adjusted EPS* Bridge Adj. EPS moved lower with adj. EBIT growth more than offset by higher interest expense The impact of the Sovos Brands acquisition was accretive to adj. EPS $0.02 ($0.04) $0.75 $0 $0 $0.73 (3)% vs. PY Q3 FY24 Adjusted EBIT* Adjusted Interest* Adjusted Taxes* Share Impact
Slide 24: Q3 FY25 Meals & Beverages results
$ Millions Q3 FY25 Meals & Beverages results Stronger U.S. Soup, Rao’s and Canada Net Sales contributed to over delivery, with some timing benefits Net Sales Operating Earnings $4,848 $4,058 $876 +15% $763 vs. PY +8% vs. PY +19% +15% vs. PY $1,463 vs. PY $1,272 $229 $248 Q3 Q3 YTD Q3 YTD Q3 Q3 Q3 YT
Slide 25: Q3 FY25 Snacks results
$ Millions Q3 FY25 Snacks results Sequential operating margin improvement despite continued pressure on snacking Net Sales Operating Earnings $3,285 $3,084 (8)% $489 vs. PY (13)% $401 vs. PY (6)% vs. PY $1,097 $1,012 $167 $145 (18)% vs. PY Q3 Q3 YTD Q3 YTD Q3 Q3 Q3 YTD Q3 YTD Q3 FY24 FY25 FY24 FY25
Slide 26: Capital Allocation
$ Millions Capital Allocation Strong cash generation and continued de-leveraging Returned $403M to shareholders in FY25 year-to-date, including previously announced 5% dividend increase Net Cash Flows from Operations Capital Allocation $897 Q3 YTD Q3 YTD $872 FY24 FY25 Invest for Growth Capital Expe
Slide 27: Outlook: FY25 Guidance
Outlook FY25 Guidance FY25 Assumptions • Reaffirms full-year fiscal 2025 guidance with adjusted EPS $ Millions, Except Per Share expected to be at the low end of the range (excluding tariffs) FY24 FY25 • Tariffs are expected to be an incremental $0.03 to $0.05 Results Guidance1 per share headwind Ne
Slide 28: Q&A
Q&A Mick Beekhuizen Carrie Anderson President & Chief Executive Officer EVP & Chief Financial Officer 28
Slide 29: Appendix
—— Appendix
Slide 30: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Third Quarter % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 27, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestitures Acquisition Meals & Beverages $ 1,463
Slide 31: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Nine Months % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 27, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestitures Acquisition Meals & Beverages $ 4,848 $
Slide 32: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Third Quarter % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 28, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,272 $
Slide 33: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Nine Months % Change Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 28, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 4,058 $ 3
Slide 34: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Three Months Three Months Ended Ended April 27, 2025 April 28, 2024 Net earnings, as reported $ 66 $ 133 Taxes 15 49 Interest, net 80 66 Earnings before interest and taxes, as reported $ 161 $ 248 34
Slide 35: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Third Quarter EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 161 6.5% $ 66 $ 0.22 Costs associated with cost savings and optimization initiatives 31 24 0.08 Commodity mark-to-market losses 10
Slide 36: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Nine Months Ended Nine Months Ended April 27, 2025 April 28, 2024 Net earnings, as reported $ 457 $ 570 Taxes 155 193 Interest, net 243 160 Earnings before interest and taxes, as reported $ 855 $ 923 36
Slide 37: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Nine Months EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 855 10.8% $ 457 $ 1.52 Costs associated with cost savings and optimization initiatives 91 70 0.23 Commodity mark-to-market gains (8)
Slide 38: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Net Interest Third Quarter Gross Profit GP % Expense EBT Tax Tax Rate 2025 – As Reported $ 728 29.4% $ 80 $ 81 $ 15 18.5% Costs associated with cost savings and optimization initiatives 7 - 31 7 Commodity mark-to-market losses 10 -
Slide 39: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Third Quarter Marketing & Other Expenses / Selling Expenses (Income) 2025 – As Reported $ 216 $ 160 Costs associated with cost savings and optimization initiatives (9) - Impairment charges - (150) Accelerated amortization - (6) 2025
Slide 40: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Third Quarter Administrative R&D Expenses Expenses Total 2025 – As Reported $ 162 $ 23 $ 185 Costs associated with cost savings and optimization initiatives (8) (1) (9) Certain litigation expenses (4) - (4) 2025 – Adjusted $ 150 $ 2
Slide 41: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Third Quarter – Adjusted Diluted EPS Impact from Adjusted Net Interest Expense Net Interest Expense 2025 – Adjusted $ 80 2024 – Adjusted 64 $ Change $ (16) Deduct: 2024 Adjusted tax rate impact on EBIT $ 4
Slide 42: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share amounts) Third Quarter – Adjusted Diluted EPS Impact from Adjusted EBIT EBIT 2025 – Adjusted $ 362 2024 – Adjusted 354 $ Change $ 8 Deduct: 2024 Adjusted tax rate impact on EBIT $ (2) Impact to Net Earnings $ 6 Thir
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 Third Quarter 2025 – Adjusted EBT $ 282 Decrease (Increase) in Adjusted Tax Rate 0.1% 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) Fiscal 2024 Organic Sales Base for Fiscal 2025 Guidance Full Year Net Sales, Impact of Organic Net Sales July 28, 2024 As Reported Divestitures* Base for FY2025 Meals & Beverages $ 5,258 $ (68) $ 5,190 Snacks 4,378 (111) 4,267 Total
Slide 45: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share data) 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 C
Slide 46: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Net Debt April 28, 2024 April 27, 2025 Short-Term Borrowings $ 1,427 $ 799 Long-Term Debt 5,752 6,097 Total Debt $ 7,179 $ 6,896 Less: Cash and Cash Equivalents (107) (143) Net Debt $ 7,072 $ 6,753 46
Slide 47: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures (a) (b) (a)+(b) Three Months Nine Months Combined Ended Ended Twelve Months Ended July 28, 2024 April 27, 2025 April 27, 2025 ($ millions) Net Earnings, as reported $ (3) $ 457 $ 454 Taxes (3) 155 152 Interest, net 83 243 326 Earnings before int
Slide 48: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures (a) (b) (c) =(a)+(b)+(c) Combined Trailing ($ millions) Three Months Nine Months Twelve Months Ended Ended Sovos May 2023 – Ended (TTM) July 30, 2023 April 28, 2024 March 11, 2024 April 28, 2024 Net Earnings, as reported $ 169 $ 570 $ 27 $ 766 T
Slide 49: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Net Debt January 26, 2025 Short-Term $ 1,179 Borrowings Long-Term Debt 6,496 Total Debt $ 7,675 Less: Cash and (829) Cash Equivalents Net Debt $ 6,846 49
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) Trailing Twelve Twelve Months Months Ended ($ millions) Ended Six Months Ended Six Months Ended Sovos February (TTM) July 28, 2024 January 28, 2024 January 26, 2025 2024 – March 11, 2024 January 26, 2025 Net Ear
Slide 51: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions) Nine Months Net Sales Meals & Beverages Net Sales 2025 $ 4,848 Add: Impact of Currency 13 Meals & Beverages $ 4,861 Meals & Beverages Net Sales 2024 $ 4,058 Add: Sovos Brands, Inc. July 31, 2023 - March 11, 2024 718 Less: noosa Dive
Campbell Soup Company — Q3 2025 Earnings Presentation on 6ix