Campbell's Reports Fiscal 2025 Results Slightly Ahead of Expectations; Additional Week Contributes 2% to Net Sales, Adjusted EBIT, and EPS

Reuters
Sep 03
Campbell's Reports Fiscal 2025 Results Slightly Ahead of Expectations; Additional Week Contributes 2% to Net Sales, Adjusted EBIT, and EPS

The Campbell's Company has reported its full-year 2025 financial results, highlighting a 6% increase in net sales to $10.3 billion, primarily driven by the benefit of an acquisition. Meanwhile, organic net sales decreased by 1% to $9.3 billion, mainly due to unfavorable volume/mix. The company's EBIT rose to $1.1 billion from $1.0 billion, with adjusted EBIT increasing by 2% to $1.5 billion, largely attributed to the acquisition's contribution, albeit partially offset by lower adjusted EBIT in the base business. In the fourth quarter of fiscal 2025, net sales increased by 1% to $2.3 billion. However, organic net sales, excluding the impact of an additional week and divestitures, fell by 3% to $2.2 billion, primarily due to lower volume/mix and the expected reversal of favorable shipment timing from the third quarter. The company's EPS increased to $0.48 per share from a loss of $0.01 per share in the previous period. Adjusted EPS decreased by 2% to $0.62 per share, reflecting lower adjusted EBIT. Additionally, gross profit for the quarter increased to $705 million from $675 million, with the gross profit margin rising to 30.4% from 29.4%. However, adjusted gross profit decreased to $709 million from $719 million, with the adjusted gross profit margin slightly declining by 90 basis points to 30.5%, mainly due to cost inflation and other supply chain costs.

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