Revenue
Earnings
Campbell has guided for adjusted earnings per share to be in the low $0.70 range in Q2 2025. Analysts are predicting EPS of $0.72 for Q2. This suggests a 10% drop from adjusted EPS of $0.80 reported in Q2 2024. In Q1 2025, adjusted EPS fell 2% YoY to $0.89.
Points to note
On its Q1 earnings call, Campbell said that for Q2, it expects to see sequential improvement from the first quarter, with organic sales growth remaining relatively flat versus the previous year. In Q1 2025, organic sales were down 1% YoY.
Last quarter, Campbell’s top line was boosted by the Sovos Brands acquisition. The second quarter results are expected to benefit from the Sovos contribution as well as gains from the holiday season. In addition, an improvement in consumer confidence and normalization in prices are likely to benefit the business.
The Meals & Beverages segment continues to benefit from the trend of consumers cooking meals at home. The addition of Sovos Brands has fueled momentum in this segment by strengthening its portfolio. The Ready-to-Serve category continues to benefit from gains in the Chunky, Rao’s, and Homestyle brands. The Rao’s and Prego brands in the Italian sauce category allow Campbell to cater to consumers across different segments and price tiers and in turn drive growth.
The Snacks segment is facing a challenging environment, particularly in salty snacks and cookies. Meanwhile categories like crackers, fresh bakery, and deli snacks are performing well. This segment may have benefited from gains during the holiday season.
Campbell’s expenses may have increased in Q2 due to holiday season investments, while its cost savings initiatives are likely to have provided a cushion. The company’s efforts in reshaping its portfolio are also anticipated to yield benefits. As part of these efforts, CPB sold its noosa yoghurt business to Lakeview Farms. These actions allow the company to focus on its core categories.