Campbell's cuts full-year guidance on soft snack sales
By Benjamin Chiou
Date: Wednesday 05 Mar 2025
(Sharecast News) - 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.
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.
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