The Campbell's Company Earnings Call Transcripts
Fiscal Year 2026
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Snacks segment margins remain under pressure due to sales declines and competitive intensity, but gradual improvement is expected in H2 as bakery stabilizes and Goldfish activity increases. Meals and beverages, led by Rao's, continue to show growth, while capital allocation focuses on debt reduction and cost control.
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Organic net sales fell 1% and adjusted EBIT dropped 11% year-over-year, pressured by cost inflation and tariffs. Leadership brands held share, but snacks and ready-to-serve soups faced headwinds. Guidance for fiscal 2026 was reaffirmed, and a 49% stake in La Regina was announced.
Fiscal Year 2025
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The meeting covered director elections, auditor ratification, and executive compensation, with both shareholder proposals—on voting standards and regenerative agriculture reporting—not approved. Fiscal 2025 saw 6% sales growth, expanded cost savings, and increased dividends.
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Leadership emphasized leveraging a strong brand portfolio and focusing on controllable factors amid a dynamic environment. Fiscal 2026 guidance projects flat organic growth, with meals and beverages maintaining momentum, snacks stabilizing, and continued investment in innovation and cost savings.
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Revenue and margin growth exceeded expectations, with 21–23% revenue growth and 650 bps EBITDA margin improvement. Integration of Enfusion, Beacon, and Bistro expands capabilities, while client retention and satisfaction remain industry-leading.
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Third quarter results exceeded expectations, driven by strong meals and beverages performance and favorable shipment timing, while snacks lagged due to category softness and competition. Full-year guidance is reaffirmed, but adjusted earnings are expected at the low end due to slower snacks recovery.
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Q2 results met expectations with 9% reported sales growth (Sovos-driven) but a 2% organic decline. Snacks underperformed, pressuring margins, while Meals and Beverages remained stable. Full-year guidance was lowered for organic sales but maintained for EPS, with cost savings and margin recovery expected in the second half.
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Q1 results met expectations with 10% net sales growth driven by Sovos, while organic sales declined 1%. Adjusted EBIT rose 6%, EPS was $0.89, and guidance for fiscal 2025 was reaffirmed. CEO transition and a dividend increase were announced.
Fiscal Year 2024
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The meeting covered director elections, auditor ratification, executive compensation, a name change, and a shareholder diversity audit proposal, which was not approved. Fiscal 2024 saw 3% sales growth, strong cash flow, and continued strategic focus on brand leadership and sustainability.
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Revised summary: The company is shifting from turnaround to growth, targeting 2-3% organic net sales growth, 4-6% adjusted EBIT growth, and 7-9% adjusted EPS growth through 2027. Focus areas include innovation, supply chain optimization, and a portfolio of 16 leadership brands, with both Snacks and Meals & Beverages set for margin expansion.
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Q4 delivered double-digit adjusted EBIT and EPS growth, with strong Sovos integration and margin expansion. Fiscal 2025 guidance anticipates steady progress, modest organic growth, and continued focus on cost savings and innovation, despite competitive and consumer headwinds.
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The portfolio has shifted toward snacking and premium brands, with Sovos and Rao’s fueling growth. Snacking is expected to normalize to 3% growth in fiscal 2025, while meals and beverages are recovering, led by soup and new product innovation. Margin expansion continues through supply chain and network improvements.
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Solid Q3 with double-digit Adjusted EBIT and EPS growth, margin expansion, and strong Sovos Brands integration. Meals and Beverages stabilized, snacks showed resilience despite short-term pressure, and guidance reflects a cautious consumer recovery.