Q1 2025 Campbell's Co Earnings Call Transcript
Key Points
- The Campbell's Co (CPB) reported a 10% increase in net sales for Q1 fiscal 2025, driven by the strong performance of Sovos Brands.
- The company's 16 leadership brands showed growth in both dollar consumption and market share, with a 2% increase in in-market dollar consumption.
- The integration of Sovos Brands is progressing well, with the Rao's brand exceeding expectations and contributing positively to the Meals and Beverages division.
- The Campbell's Co (CPB) reaffirmed its fiscal 2025 guidance, reflecting confidence in steady progress and strategic execution.
- The company announced a 5% increase in its regular quarterly dividend, indicating confidence in its earnings and cash flow.
- Organic net sales decreased by 1%, reflecting a dynamic consumer environment and inventory level impacts due to the later Thanksgiving holiday.
- Adjusted EPS decreased by 2% to $0.89, primarily due to higher interest expenses from increased debt levels.
- The Snacks division experienced a 2% decline in organic net sales, impacted by lower sales in partner and contract brands.
- The adjusted gross profit margin declined by 70 basis points, influenced by the acquisition of Sovos Brands.
- The company faces competitive pressure in certain snack categories, particularly from new entrants and private label products.
Good morning, and welcome to the Campbell's Company Q1 fiscal 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the call over to Rebecca Gardy, Chief Investor Relations Officer at Campbell's. Please go ahead.
Good morning, and welcome to the Campbell's Company first quarter fiscal '25 earnings conference call. I'm Rebecca Gardy, Campbell's Chief Investor Relations Officer. And joining me today are Mark Clouse, Chief Executive Officer; and Carrie Anderson, Chief Financial Officer. Today's remarks have been prerecorded. Once we conclude the prepared remarks, we will transition to a live webcast Q&A session. The prepared remarks, the slide deck and earnings press release have been posted to the Investor Relations section of our website, thecampbellscompany.com. Following the conclusion of the Q&A session, a replay of the webcast will be available at the same location followed
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