Financial Data and Key Metrics Changes - Organic net sales decreased by 1%, primarily due to a 2% decline in consumption, with retailers building inventory ahead of promotions [6][8] - Adjusted EBIT declined by 11% year-over-year to $383 million, driven by lower adjusted gross profit [27] - Adjusted EPS decreased by 13% to $0.77, impacted by lower adjusted EBIT and a higher adjusted tax rate [29][32] Business Line Data and Key Metrics Changes - Meals and Beverages segment reported a 4% decrease in net sales, with organic net sales down 2% due to declines in U.S. soup and other products [30] - Snacks segment saw a 2% decrease in net sales, with organic net sales down 1%, primarily due to lower sales in Snyder's of Hanover pretzels and Cape Cod potato chips [31][32] - Leadership brands in meals and beverages held or grew share for the ninth consecutive quarter, while snacks leadership brands saw mixed performance [11][12] Market Data and Key Metrics Changes - Total in-market consumption for the company was down 2%, but leadership brands' consumption was only down 1%, maintaining market share [7][11] - Broth consumption grew for the ninth consecutive quarter, driven by increased household penetration and buy rates [13] - The overall soup portfolio lagged the category on share, with cooking varieties performing well while eating soups faced pressure [12][14] Company Strategy and Development Direction - The company is focused on mitigating cost pressures while maintaining marketing support for its brands, emphasizing consumer-led innovation and brand activations [9][10] - A strategic partnership with La Regina was announced to enhance Rao's brand growth and secure high-quality ingredient supply [17][18] - The company aims to reignite growth in its snacks portfolio, particularly focusing on Goldfish, through innovation and targeted marketing [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic operating environment and reiterated fiscal 2026 guidance, including expected tariff impacts [9][33] - The company is committed to crafting high-quality food at the right value while investing in omnichannel execution and brand activation [25][26] - Management expressed confidence in the strength of leadership brands and the ability to adapt to evolving consumer preferences [35][49] Other Important Information - The company achieved approximately $15 million in new cost savings, contributing to a total of $160 million towards its fiscal 2028 target of $375 million [28] - The gross impact of tariffs on Q1 adjusted EPS was $0.14, with a net impact of $0.04 [29] - The company has approximately $168 million in cash and cash equivalents and $1.4 billion available under its revolving credit facility [32] Q&A Session Summary Question: Details on the La Regina acquisition - The acquisition supports the growth of Rao's by securing high-quality ingredient supply and enhancing the partnership with the Romano family [36][38] - The first payment of $146 million is expected upon closing, with a second payment of $140 million one year later [39] Question: Stabilization of the snack segment - Management expects stabilization in the second half of the fiscal year, with ongoing focus on evolving consumer preferences [41][42] - The company is addressing performance issues in specific snack categories, particularly with Goldfish [44][60] Question: Impact of mega trends on salty snacks - Management is focused on consumer value and evolving preferences, particularly in premiumization and health and wellness [46][48] - The company is adapting its portfolio to align with these trends while maintaining competitive pricing [49] Question: Soup business pricing and value - Management is aware of the need to balance pricing actions with providing value, particularly in the eating soup category [50][53] - Selective pricing actions are being taken to remain competitive during the soup season [52][53] Question: Initial perspectives on opportunities for improvement - The new CFO sees potential in streamlining analysis and focusing on the right investments to drive growth and profitability [57][58] Question: Goldfish brand performance and marketing focus - Household penetration for Goldfish remains stable, but buy rates have declined, prompting a focus on innovation and clear messaging [60][61] - The company is prioritizing value and execution in the marketplace to support Goldfish's growth [62]

Earnings Presentation Q1 Fiscal 2026 1 Rebecca Gardy Chief Investor Relations Officer Welcome Today's Agenda Mick Beekhuizen Chief Executive Officer Business Update Todd Cunfer Chief Financial Officer Financial Results and Outlook 2 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 o ...

Core Viewpoint - Campbell Soup Company (CPB) is expected to report a decline in earnings for the quarter ending October 2025, with anticipated EPS of $0.73 and revenue of approximately $2.66 billion, reflecting a year-over-year decrease in both metrics [3]. Financial Performance - CPB has a history of exceeding earnings estimates, with an average earnings surprise of 10.54% over the past two quarters [2]. - In the most recent quarter, CPB reported an EPS of $0.62, surpassing the expected $0.57, resulting in an 8.77% surprise [2]. - The previous quarter showed a 12.31% surprise, with an EPS of $0.73 against a $0.65 estimate [2]. Earnings Estimates - Analysts predict an 18% decline in EPS compared to the same period last year, with the projected revenue indicating a 4.1% year-over-year decrease [3]. - The consensus EPS estimate has been revised downward by 0.5% over the past month, reflecting a reassessment of initial projections [4]. Financial Ratios - CPB's financial metrics include a price-to-earnings (P/E) ratio of 14.51 and a price-to-sales ratio of 0.85 [5]. - The enterprise value to sales ratio is 1.54, and the enterprise value to operating cash flow ratio is 13.84 [5]. - The company's debt-to-equity ratio stands at 1.85, with a current ratio of 0.77, indicating its ability to cover short-term liabilities [5].

Financial Performance - Q4 Fiscal Year 2025 - Net sales increased by 1% to $2321 million compared to Q4 FY24[19, 68] - Organic net sales decreased by 3% compared to Q4 FY24[19, 68] - Adjusted EBIT decreased by 2% compared to Q4 FY24, reaching $321 million[19, 68] - Adjusted EPS decreased by 2% compared to Q4 FY24, amounting to $062[19, 68] Financial Performance - Full Fiscal Year 2025 - Net sales increased by 6% to $10253 million compared to FY24[19, 71] - Organic net sales decreased by 1% compared to FY24[19, 71] - Adjusted EBIT increased by 2% compared to FY24, reaching $1487 million[19, 71] - Adjusted EPS decreased by 4% compared to FY24, amounting to $297[19, 71] Segment Performance - Meals & Beverages organic net sales decreased by 3% in Q4 FY25[35] - Snacks organic net sales decreased by 2% in Q4 FY25[51] Fiscal Year 2026 Guidance - The company expects net sales to decline by 2% to 0%[109] - Organic net sales are projected to range from -1% to +1%[109] - Adjusted EBIT is expected to decline by 13% to 9%[109] - Adjusted EPS is projected to be in the range of $240 to $255[109]

Financial Data and Key Metrics Changes - The third quarter earnings performance exceeded expectations, with reported net sales increasing by 4% driven by the Sovos acquisition and organic net sales growth of 1% [5][29] - Adjusted EBIT increased by 2% year-over-year, resulting in a slight margin decrease due to lower net pricing realization [9][30] - Adjusted EPS was down 3%, with a net positive contribution from the Sovos acquisition [10][30] Business Line Data and Key Metrics Changes - Meals and Beverages division reported organic net sales growth of 6%, driven by volume and mix growth of 7% [13][35] - Snacks business experienced a 5% decline in organic net sales, primarily due to lower volume and mix [20][36] - The overall consumption of Meals and Beverages leadership brands increased by 2%, while Snacks leadership brand consumption declined by 3% [11][13] Market Data and Key Metrics Changes - In-market consumption for Meals and Beverages outpaced category consumption, while Snacks lagged behind due to competitive pressures [7][10] - The consumer environment showed a preference for home-cooked meals, leading to increased demand for Meals and Beverages products [11][62] - The Snacks category faced a 3% decline in in-market consumption, attributed to deteriorating consumer confidence and increased competition [20][72] Company Strategy and Development Direction - The company is focused on near-term in-market execution and mitigating tariff impacts while investing in brand growth and capabilities [8][27] - A growth office has been established to enhance consumer insights, brand activation, and innovation [27] - The company aims to improve efficiency and effectiveness across the organization to facilitate long-term growth [27][41] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are making more deliberate spending decisions, impacting the Snacks business negatively [6][26] - The company expects adjusted earnings to be at the low end of the guidance range due to slower recovery in the Snacks business [7][39] - There is optimism regarding the sustainability of the at-home cooking trend, which has positively impacted the Meals and Beverages division [60][64] Other Important Information - The company has estimated the net incremental headwind of tariff-related costs to be up to $0.03 to $0.05 per share for fiscal 2025 [39][40] - Capital expenditures for fiscal 2025 are expected to be approximately 4.5% of net sales, reflecting a decrease from prior guidance [41] Q&A Session Summary Question: What is the pressure on the Snacks business? - Management indicated that about two-thirds of the pressure is due to overall category performance and one-third from in-market execution, with a focus on innovation and value [45][47] Question: What are the key factors for fiscal 2026? - Management noted that recovery in the Snacks business is expected to take place in fiscal 2026, with a need for increased marketing support [52][54] Question: How sustainable is the at-home cooking trend? - Management expressed optimism about the sustainability of the at-home cooking trend, supported by the company's diverse portfolio [60][64] Question: What is the impact of tariffs on future guidance? - Management clarified that the estimated tariff impact is being phased in and should not be annualized at this time due to the evolving trade landscape [75][80] Question: What is the growth expectation for Rao's? - Management expects high single-digit growth for Rao's in fiscal 2025, with confidence in the brand's trajectory [83][84]