Campbell's cuts full-year guidance on soft snack sales.


Campbell's shares were trading firmly lower on Wednesday after the American food manufacturer scaled back its full-year guidance after a weaker underlying performance in its second quarter.

  • Campbell Soup Co.
  • 05 March 2025 16:13:03

Source: Sharecast

The company, known for its eponymous canned soup brand along with other household names like Kettle chips, Lance and Swanson, said net sales were up 9% at $2.7bn in the three months to 26 January, but were down 2% on an organic basis.

The organic decline in the meals and beverages division was 1%, but 3% in the snacks business segment.

Adjusted earnings before interest and tax improved 2% year-on-year in the second quarter to $372m, but adjusted diluted earnings per share dropped 8% to $0.74.

"Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialise during the quarter, and we now have a more muted second half expectation," said chief executive and president Mick Beekhuizen.

"As a result, we are updating our full-year guidance," he said.

For the year ending July 2025, Campbell's is now expecting organic net sales to be flat to down 2%, compared with previous guidance of growth of up to 2%.

The company also pointed to adjusted EPS of between $2.95 to $3.05, down 1-4% on last year and below earlier guidance of $3.12 to $3.22.

Shares were 3.3% lower at $39.02 by 1111 ET.


Exchange: New York Stock Exchange
Sell:
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Buy:
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Change: -0.00 ( -0.00 %)
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