Core Insights - The Campbell's Company (CPB) reported mixed results for the fourth quarter of fiscal 2025, with earnings exceeding estimates while net sales fell short [1][3] - Year-over-year earnings declined, but net sales increased, primarily due to the acquisition of Sovos Brands [1][3] Financial Performance - Adjusted earnings per share (EPS) were 62 cents, a 2% decrease year over year, but above the Zacks Consensus Estimate of 57 cents [2][9] - Net sales reached $2,321 million, a 1% increase year over year, but below the Zacks Consensus Estimate of $2,334 million [3][9] - Organic net sales fell 3% to $2.2 billion, attributed to lower volume/mix and the reversal of favorable shipment timing [3] Profitability Metrics - Adjusted gross profit decreased to $709 million from $719 million, with the gross profit margin declining by 90 basis points to 30.5% [4][9] - The margin decline was driven by cost inflation and supply-chain expenses, partially offset by productivity benefits and favorable net price realization [4] Expense Analysis - Adjusted marketing and selling expenses rose 5% to $197 million, mainly due to increased advertising and consumer promotion costs [5] - Adjusted administrative expenses fell 4% to $158 million, reflecting cost savings and lower incentive compensation [5] Segment Performance - Meals & Beverages segment net sales were $1,202 million, unchanged from the previous year, with organic sales down 3% due to declines in Rao's pasta sauces and U.S. soup [6] - Snacks segment net sales totaled $1,012 million, a 2% increase year over year, but organic sales decreased by 2% [7] Cash Flow and Capital Management - As of the end of the quarter, Campbell's had cash and cash equivalents of $132 million and total debt of $6,857 million [8] - The company paid $459 million in cash dividends and repurchased nearly $62 million in shares during the period [8] Fiscal 2026 Guidance - For fiscal 2026, CPB anticipates net sales to be flat to down 2%, with organic net sales expected to range from a 1% decline to a 1% increase [13] - Adjusted EBIT is projected to decrease by 9-13%, and adjusted EPS is expected to decline by 12-18%, ranging from $2.40 to $2.55 [13] Strategic Outlook - The company aims to leverage consumer trends towards premiumization and health, while facing challenges from input cost inflation and tariffs [11][12]

Core Insights - Campbell's Company (CPB) reported mixed results for the second quarter of fiscal 2025, with net sales increasing year over year but missing the Zacks Consensus Estimate, while adjusted earnings declined year over year but exceeded expectations [1][3][4] Financial Performance - Adjusted earnings were 74 cents, down 8% year over year, primarily due to increased net interest expenses, although higher adjusted EBIT partially offset this decline [3] - Net sales reached $2,685 million, reflecting a 9% year-over-year growth but falling short of the Zacks Consensus Estimate of $2,738 million, with organic net sales declining by 2% [4] - Adjusted gross profit was $815 million, up from $772 million in the prior-year quarter, but the adjusted gross profit margin contracted by 100 basis points to 30.4% due to various cost pressures [5] Segment Performance - Meals & Beverages segment net sales were $1,679 million, up 21% year over year, driven by the Sovos Brands acquisition, but organic sales declined by 1% [7] - Snacks segment net sales totaled $1,006 million, down 6% year over year, with organic sales declining by 3% due to lower sales in key brands [8] Cash Flow and Capital Management - As of the end of the reported quarter, Campbell's had cash and cash equivalents of $829 million and total debt of $7,675 million, generating $737 million in net cash from operating activities for the first half of the fiscal year [9] - The company paid $227 million in cash dividends and repurchased nearly $56 million in shares year to date, with approximately $205 million remaining under its anti-dilutive share repurchase program [10] Fiscal 2025 Guidance - Campbell updated its fiscal 2025 guidance, now forecasting net sales growth of 6-8%, down from the previous estimate of 9-11%, and organic net sales expected to range from a 2% decline to flat [11] - Adjusted EPS is now projected to decline by 4% to 1%, with a new range of $2.95 to $3.05 compared to the previous forecast of $3.12-$3.22 [12]