Campbell Soup(US:CPB)2025-06-02 11:19Financial Performance - Net sales for the three months ended April 27, 2025, were $2,475 million, an increase of 4.5% compared to $2,369 million for the same period in 2024[9]. - Net earnings attributable to The Campbell's Company for the three months ended April 27, 2025, were $66 million, a decrease of 50% from $133 million in the same period last year[9]. - Total costs and expenses for the three months ended April 27, 2025, were $2,314 million, up 9.1% from $2,121 million for the same period in 2024[9]. - The company reported a total comprehensive income of $67 million for the three months ended April 27, 2025, down from $141 million in the same period last year[10]. - Net earnings for the nine months ended April 27, 2025, were $457 million, a decrease of 19.74% compared to $570 million for the same period in 2024[16]. - Cash flows from operating activities provided $872 million, slightly down from $897 million in the prior year[16]. - The company reported accumulated other comprehensive loss of $15 million as of April 27, 2025[37]. - Net sales for the three months ended April 27, 2025, were $2.475 billion, an increase from $2.369 billion for the same period in 2024, representing a growth of approximately 4.5%[50]. - Total net sales for Q3 2025 were $2.475 billion, a 4% increase from $2.369 billion in Q3 2024, driven by a 15% increase in Meals & Beverages segment sales[139]. Costs and Expenses - Research and development expenses for the three months ended April 27, 2025, were $23 million, down from $27 million in the same period last year[9]. - The total cost of products sold was $1,747 million for the three months ended April 27, 2025, compared to $1,637 million for the same period in 2024[88]. - The total interest expense was $85 million for the three months ended April 27, 2025, up from $70 million for the same period in 2024[88]. - Other expenses increased to $160 million in 2025 from $30 million in 2024, primarily due to a $150 million impairment charge related to the Snyder's of Hanover trademark[145]. - Marketing and selling expenses increased by 5% in 2025, primarily due to the impact of the acquisition of Sovos Brands[143]. Assets and Liabilities - The company's total assets as of April 27, 2025, were $14,828 million, a decrease from $15,235 million as of July 28, 2024[13]. - Current liabilities decreased to $2,849 million as of April 27, 2025, from $3,576 million as of July 28, 2024[13]. - Long-term debt increased to $6,097 million as of April 27, 2025, compared to $5,761 million as of July 28, 2024[13]. - Total equity at April 27, 2025, was $3,872 million, reflecting a decrease from $3,915 million at April 28, 2024[18]. - As of April 27, 2025, the company had negative working capital of $623 million, with total debt maturing within one year at $799 million[182]. Acquisitions and Divestitures - The company completed the acquisition of Sovos Brands, Inc. for a total consideration of $2.899 billion, with cash paid to shareholders amounting to $2.339 billion[27]. - The acquisition contributed $166 million to net sales and resulted in a loss of $75 million to net earnings for the period from March 12, 2024, to April 28, 2024[31]. - The company sold its Pop Secret popcorn business for $70 million, recognizing a pre-tax loss of $25 million[33]. - The noosa yoghurt business, part of the Sovos Brands acquisition, was sold for $188 million, with an after-tax loss of $15 million recorded[35]. - The company sold its Pop Secret popcorn business for $70 million and the noosa yoghurt business for $188 million in early 2025[185]. Impairment and Restructuring - The company incurred impairment charges of $176 million during the nine months ended April 27, 2025, compared to no impairment charges in the same period last year[16]. - The company recognized an impairment charge of $150 million on the Snyder's of Hanover trademark in the third quarter of 2025, reducing its carrying value to $470 million[44]. - The total aggregate impact of impairment charges year-to-date in 2025 was $176 million ($131 million after tax, or $0.44 per share)[135]. - Total pre-tax charges related to restructuring and optimization initiatives amounted to $895 million, with approximately $720 million being cash expenditures[57]. Shareholder Returns - Dividends paid amounted to $343 million, compared to $334 million in the same period last year[16]. - The company has approximately $200 million remaining under its September 2024 share repurchase program and $301 million under the September 2021 program[188]. - The company repurchased 1.247 million shares at a cost of $60 million during the nine-month period ended April 27, 2025[101]. Future Outlook and Guidance - The company plans to adopt new accounting guidance regarding segment disclosures starting with the 2025 annual reporting[24]. - The fiscal year ends on August 3, 2025, with 53 weeks expected in 2025, compared to 52 weeks in 2024[22]. - The company expects amortization expense to be approximately $70 million in 2025 and $40 million per year for the following four years[41]. - The company anticipates continued supply chain productivity and benefits from cost savings initiatives to mitigate inflationary pressures in 2025[127]. - The company expects total estimated pre-tax costs for identified actions to be approximately $210 million, with 70% allocated to Meals & Beverages, 9% to Snacks, and 21% to Corporate[63].