Campbell's Company Reports 4% Net Sales Increase in Q3 Fiscal 2025

The Campbell's Company reported a net sales increase of 4% for the third quarter of fiscal 2025, reaching $2.475 billion, compared to $2.369 billion in the same period last year. The growth was primarily driven by the acquisition of Sovos Brands, which contributed significantly to the Meals & Beverages segment, where sales rose 15% to $1.463 billion. However, the Snacks segment experienced an 8% decline in sales, totaling $1.012 billion, attributed to lower demand for key products such as Goldfish crackers and Snyder's of Hanover pretzels.

In terms of profitability, net earnings attributable to The Campbell's Company were $66 million, or $0.22 per share, down from $133 million, or $0.44 per share, in the prior-year quarter. The decrease in earnings was influenced by higher interest expenses and increased marketing and selling costs, which were partially offset by lower administrative expenses. The gross profit margin also declined to 29.4% from 30.9% year-over-year, primarily due to cost inflation and unfavorable net price realization, despite some benefits from supply chain productivity improvements.

The company has been active in strategic developments, including the acquisition of Sovos Brands for $2.899 billion, completed on March 12, 2024. This acquisition expanded Campbell's product offerings in the Meals & Beverages segment. Additionally, Campbell's divested its Pop Secret popcorn business for $70 million in August 2024 and its noosa yoghurt business for $188 million in February 2025. These divestitures are part of a broader strategy to streamline operations and focus on core brands.

Operationally, Campbell's has been implementing cost savings initiatives, which have resulted in pre-tax charges of $21 million in the latest quarter. The company anticipates ongoing savings from these initiatives, projecting annual savings of approximately $250 million by the end of 2028. As of April 27, 2025, Campbell's reported a negative working capital of $623 million, reflecting a focus on reducing core working capital requirements. The company also maintained a strong liquidity position, generating $872 million in cash flows from operations during the nine months ended April 27, 2025.

Looking ahead, Campbell's expects to navigate ongoing macroeconomic challenges, including inflation and supply chain pressures, while continuing to leverage the benefits of the Sovos Brands acquisition. The company remains committed to optimizing its operations and enhancing its product offerings to meet evolving consumer demands.