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]