Campbell Soup(US:CPB)2025-09-18 11:40Financial Performance - Net sales for 2025 reached $10,253 million, an increase of 6.4% from $9,636 million in 2024[246] - Net earnings attributable to The Campbell's Company for 2025 were $602 million, up 6.2% from $567 million in 2024[246] - Earnings before interest and taxes (EBIT) for 2025 were $1,124 million, compared to $1,000 million in 2024, reflecting a 12.4% increase[246] - Total costs and expenses increased to $9,129 million in 2025, up from $8,636 million in 2024, representing a 5.7% rise[246] - The company reported a total comprehensive income of $604 million for 2025, compared to $553 million in 2024[249] - Net earnings for 2025 were $602 million, an increase from $567 million in 2024 and a decrease from $858 million in 2023[255] - Segment operating earnings for 2025 were $1,636 million, compared to $1,622 million in 2024, reflecting a slight increase[319] - Earnings before taxes for 2025 were $796 million, compared to $757 million in 2024, showing an increase[319] Costs and Expenses - Total costs and expenses increased to $9,129 million in 2025, up from $8,636 million in 2024, representing a 5.7% rise[246] - The cost of products sold in 2025 was $7,110 million, up from $6,595 million in 2024, indicating a rise in production costs[319] - Research and development expenses were $100 million in 2025, slightly down from $102 million in 2024[246] - Restructuring charges in 2025 amounted to $24 million, with total pre-tax charges related to cost-saving initiatives at $104 million[330] Assets and Equity - Total assets decreased to $14,896 million in 2025 from $15,235 million in 2024[251] - Total equity attributable to The Campbell's Company increased to $3,902 million in 2025 from $3,794 million in 2024[251] - The total equity at the end of 2025 was $3,904 million, up from $3,796 million in 2024[258] Debt and Cash Flow - Long-term debt increased to $6,095 million in 2025, up from $5,761 million in 2024[251] - Net cash provided by operating activities was $1,131 million in 2025, compared to $1,185 million in 2024 and $1,143 million in 2023[255] - Net cash used in investing activities significantly decreased to $(187) million in 2025 from $(3,128) million in 2024, indicating improved cash flow management[255] - Short-term borrowings increased to $1,846 million in 2025 from $5,622 million in 2024, while long-term borrowings were $1,144 million in 2025 compared to $2,496 million in 2024[255] - Total long-term debt decreased from $6,911 million in 2024 to $6,095 million in 2025, a reduction of approximately 11.8%[390] Acquisitions and Sales - The acquisition of Sovos Brands, Inc. was completed for a total consideration of $2.899 billion, with cash paid to shareholders amounting to $2.339 billion[289] - The acquisition contributed $423 million to net sales and resulted in a loss of $84 million to net earnings for the period from March 12, 2024, to July 28, 2024[292] - The company recognized a pre-tax loss of $25 million on the sale of the Pop Secret popcorn business, which had net sales of $119 million in 2024[295] - The Emerald nuts business was sold for $41 million, resulting in a pre- and after-tax loss of $13 million, with net sales of $51 million in 2023[294] - The noosa yoghurt business was sold for $188 million, with an after-tax loss of $15 million recorded on the sale[297] Shareholder Returns - Dividends paid increased to $460 million in 2025 from $445 million in 2024, reflecting a commitment to returning value to shareholders[258] - In 2025, the company repurchased 1.303 million shares at a cost of $62 million, with approximately $198 million remaining under the September 2024 share repurchase program[422] - The company authorized a new anti-dilutive share repurchase program of up to $250 million in September 2024, replacing a similar program from June 2021[421] Taxation - The effective income tax rate for 2025 was 24.4%, an increase from 25.1% in 2024, primarily due to the acquisition of Sovos Brands[374] - The total income taxes for 2025 amounted to $194 million, compared to $190 million in 2024 and $270 million in 2023[374] - As of August 3, 2025, the net deferred tax liability was $1.351 billion, a decrease from $1.424 billion in 2024[377] Pension and Benefits - The net periodic benefit expense for pension plans in 2025 was $21 million, compared to $31 million in 2024, while postretirement benefits expense was $3 million in 2025, down from $8 million in 2024[344] - The pension benefit obligation at the end of 2025 was $1.214 billion, a decrease from $1.267 billion in 2024, while postretirement benefit obligation decreased to $127 million from $145 million[347] - The fair value of pension plan assets at the end of 2025 was $1.244 billion, down from $1.307 billion in 2024, with an actual return on plan assets of $45 million in 2025[348] Litigation - The company is involved in ongoing litigation concerning alleged violations of the Clean Water Act, with potential civil penalties being uncertain but not expected to materially affect financial conditions[438]