CAMPBELLS Co
For the period ended Jan 26, 2025. Filed Mar 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 26, 2025 · Filed Mar 5, 2025
CPB$23.13-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-27; filed 2024-12-04.
0000016732-24-000201
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-01-26; filed 2025-03-05.
0000016732-25-000026
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 152 previous paragraphs and 215 current paragraphs.
98 unchanged; 49 reworded; 50 added; 5 removed; 0 previous and 18 current paragraphs rearranged.
Tables are not compared: 11 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
Our industry continues to navigate an ongoing recovery in light of global macroeconomic challenges, including changes in consumer purchasing and spending patterns; supply chain pressures; commodity cost volatility; labor market issues; and economic uncertainties amplified by increased regulatory activity, potential or actual imposition of tariffs and shifting global trade policies. Twenty-five percent tariffs on product imports from Mexico and Canada, and additional 10% tariffs on product imports from China (for an aggregate of 20%) went into effect on March 4, 2025. These actions are expected to result in retaliatory measures on U.S. goods. We are continuing to monitor the rapidly evolving tariff and global trade policies and are working with our suppliers to mitigate potential impacts on our business. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions that may be granted, availability and cost of alternative sources of supply and demand for our products in affected markets.
Current report
•In the second quarter of 2025, we performed an interim impairment assessment on certain salty snacks and cookie trademarks within our Snacks segment, including Tom's, Jays, Kruncher's, O-Ke-Doke, Stella D'oro and Archway, collectively referred to as our "Allied brands," and recognized an impairment charge of $15 million on the trademarks.
Current report
In the second quarter of 2025, we performed an interim impairment assessment on the Late July trademark within our Snacks segment and recognized an impairment charge of $11 million on the trademark.
Current report
In the second quarter of 2025, the total aggregate impact of the impairment charges was $26 million ($19 million after tax, or $.06 per share).
Current report
The charges were included in Other expenses / (income);
Current report
SECOND-QUARTER DISCUSSION AND ANALYSIS
Current report
(2)Sum of the individual amounts does not add due to rounding.
Current report
In Meals & Beverages, sales increased 21%, primarily due to a 23-point benefit from the acquisition of Sovos Brands. Excluding the benefit from the acquisition of Sovos Brands, sales decreased primarily due to declines in SpaghettiOs and U.S. soup, partially offset by gains in foodservice. Lower net price realization was partially offset by favorable volume/mix. Sales of U.S. soup decreased 1% primarily due to declines in ready-to-serve soups and condensed soups, partially offset by increases in broth.
Current report
The 110 basis-point decrease in gross profit margin was due to the following factors:
Current report
Marketing and selling expenses as a percent of sales were 9.5% in 2025 compared to 8.8% in 2024. Marketing and selling expenses increased 18% in 2025 from 2024. The increase was primarily due to the impact of the acquisition (approximately 11 points) and higher advertising and consumer promotion expense (approximately 7 points) driven by Meals & Beverages and Snacks.
Current report
Segment operating earnings decreased 1% in 2025 from 2024.
Current report
Operating earnings from Snacks decreased 29%. The decrease was primarily due to lower gross profit and higher marketing and selling expenses. Gross profit decreased primarily due to the impact of cost inflation and other supply chain costs, unfavorable volume/mix and unfavorable net price realization, partially offset by supply chain productivity improvements and the benefits from cost savings initiatives.
Current report
•$26 million of impairment charges related to the Allied brands and Late July trademarks;
Current report
•$14 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Current report
•costs of $34 million related to cost savings initiatives;
Current report
•$10 million of costs associated with the acquisition of Sovos Brands;
Current report
Excluding these amounts, the remaining decrease was primarily due to lower administrative costs.
Current report
The effective tax rate was 30.0% in 2025 and 25.1% in 2024. Theincrease in the effective tax rate was primarily due to $15 million ofdeferred tax expense recognized related to the sale of the noosa yoghurt business in the current quarter, partially offset bynondeductible costs associated with the acquisition of Sovos Brands in the year-ago quarter.
Current report
SIX-MONTH DISCUSSION AND ANALYSIS
Current report
Sales
Current report
(2)Sum of the individual amounts does not add due to rounding.
Current report
Gross Profit
Current report
The 50 basis-point decrease in gross profit margin was due to the following factors:
Current report
Marketing and Selling Expenses
Current report
Administrative Expenses
Current report
Administrative expenses as a percent of sales were 6.2% in 2025 compared to 7.0% in 2024. Administrative expenses decreased 2% in 2025 from 2024. The decrease was primarily due to increased benefits from cost savings initiatives (approximately 5 points); lower costs related to cost savings initiatives (approximately 4 points); lower incentive compensation (approximately 1 point) and lower benefit-related costs (approximately 1 point), partially offset by the impact of the acquisition (approximately 5 points) and higher general administrative costs (approximately 4 points).
Current report
Other Expenses / (Income)
Current report
Operating Earnings
Current report
•costs of $49 million related to costs savings initiatives;
Current report
•$26 million of impairment charges related to the Allied brands and Late July trademarks;
Current report
•$14 million of accelerated amortization expense;
Current report
•costs of $45 million related to cost savings initiatives;
Current report
•$19 million of costs associated with the acquisition of Sovos Brands;
Current report
•$14 million of accelerated amortization expense;
Current report
•$3 million of costs associated with a cybersecurity incident.
Current report
Interest Expense
Current report
Taxes on Earnings
Current report
Operating Activities
Current report
Investing Activities
Current report
Financing Activities
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (5)
Previous report
FIRST-QUARTER DISCUSSION AND ANALYSIS
Previous report
Gross profit margin performance was impacted by the following:
Previous report
•costs of $11 million related to cost savings initiatives;
Previous report
•$9 million of costs associated with the acquisition of Sovos Brands;
Previous report
•$3 million of costs related to a cybersecurity incident; and
Reworded paragraphs (49)
Previous wording
Unless otherwise stated, the terms "we," "us," "our" and the "company" refer to The Campbell's Company, formerly known as Campbell Soup Company, and its consolidated subsidiaries.
Current wording
Unless otherwise stated, the terms "we," "us," "our" and the "company" refer to The Campbell's Company and its consolidated subsidiaries.
Previous wording
In November 2024, we entered into an agreement to sell our noosa yoghurt business for $200 million, subject to certain customary purchase price adjustments. The closing of the transaction is subject to certain customary conditions, including regulatory approval. For additional information on the divestiture, see Note 20 to the Consolidated Financial Statements.
Current wording
On February 24, 2025, we completed the sale of our noosa yoghurt business for $188 million, subject to certain customary purchase price adjustments. For additional information on the divestiture, see Note 4 to the Consolidated Financial Statements.
Previous wording
Our industry continues to navigate a steady and ongoing recovery in light of supply chain disruptions, commodity cost volatility, changes in consumer purchasing and spending patterns, labor market issues, economic uncertainties and impacts of a change in administration as a result of the 2024 presidential election and other global macroeconomic challenges. Through the first quarter, we continued to experience some moderation in input cost inflation, as we continue to see improvement across certain ingredients and packaging materials. We anticipate continued supply chain productivity and benefits from cost savings initiatives to mitigate some of the inflationary pressures and expect such benefits to offset incremental costs in 2025. We expect consumer trends to continue to evolve and our volumes to improve over time; however, economic pressures on consumers, including the challenges of persistent inflation, may continue to negatively impact our volumes throughout 2025. We will continue to evaluate the evolving macroeconomic environment to take action to mitigate the impact on our business, consolidated results of operations and financial condition.
Current wording
Through the second quarter, we continued to experience some moderation in input cost inflation, as we continue to see cost improvement across certain ingredients and packaging materials. We anticipate continued supply chain productivity and benefits from cost savings initiatives to mitigate inflationary pressures and expect such benefits to offset incremental costs in 2025, excluding potential impacts of tariffs. We expect consumer trends to continue to evolve and our volumes to improve over time; however, economic pressures, including the challenges of persistent inflation and impacts of tariffs, may continue to negatively impact our volumes throughout 2025. We will continue to evaluate the evolving macroeconomic environment to take action to mitigate the impact on our business, consolidated results of operations and financial condition.
Previous wording
•Net sales increased 10% in the quarter to $2.772 billion primarily due to a 12-point benefit from the acquisition of Sovos Brands.
Current wording
•Net sales increased 9% in the quarter to $2.685 billion primarily due to a 13-point benefit from the acquisition of Sovos Brands.
Previous wording
•Gross profit, as a percent of sales, was 31.3% in 2025 and the prior-year quarter. The performance reflected benefits from supply chain productivity improvements and mark-to-market adjustments on outstanding undesignated commodity hedges offset by the impact of cost inflation and other supply chain costs, unfavorable net price realization and the impact of the acquisition.
Current wording
•Gross profit, as a percent of sales, was 30.5% in 2025 compared to 31.6% in the prior-year quarter. The decrease was primarily due to unfavorable net price realization, the impact of cost inflation and other supply chain costs and the impact of the acquisition, partially offset by benefits from supply chain productivity improvements.
Previous wording
•Earnings per share were $.72 in 2025, compared to $.78 in the prior-year quarter. The current quarter included expenses of $.16 per share and the prior-year quarter included expenses of $.13 per share from items impacting comparability as discussed below.
Current wording
•Earnings per share were $.58 in 2025, compared to $.68 in the prior-year quarter. The current quarter included expenses of $.16 per share and the prior-year quarter included expenses of $.12 per share from items impacting comparability as discussed below.
Previous wording
•We implemented several cost savings initiatives in recent years. In the first quarter of 2025, we recorded Restructuring charges of $6 million and implementation costs and other related costs of $11 million in Administrative expenses, $8 million in Cost of products sold, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. In the first quarter of 2024, we recorded Restructuring charges of $2 million and implementation costs and other related costs of $5 million in Administrative expenses, $3 million in Cost of products sold, $2 million in Marketing and selling expenses and $1 million in Research and development expenses (aggregate impact of $10 million after tax, or $0.03 per share) related to these initiatives.
Current wording
•We implemented several cost savings initiatives in recent years. In the second quarter of 2025, we recorded Restructuring charges of $5 million and implementation costs and other related costs of $10 million in Cost of products sold, $8 million in Administrative expenses, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. In the second quarter of 2024, we recorded Restructuring charges of $2 million and implementation costs and other related costs of $29 million in Administrative expenses, $3 million in Cost of products sold, $1 million in Marketing and selling expenses and $1 million in Research and development expenses (aggregate impact of $27 million after tax, or $.09 per share) related to these initiatives. Year-to-date in 2025, we recorded Restructuring charges of $11 million and implementation costs and other related costs of $19 million in Administrative expenses, $18 million in Cost of products sold, $2 million in Marketing and selling expenses and $2 million in Research and development expenses related to these initiatives. Year-to-date in 2024, we recorded Restructuring charges of $4 million and implementation costs and other related costs of $34 million in Administrative expenses, $6 million in Cost of products sold, $3 million in Marketing and selling expenses and $2 million in Research and development expenses (aggregate impact of $37 million after tax, or $.12 per share) related to these initiatives.
Previous wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. In the first quarter of 2025, we recognized $8 million in Marketing and selling expenses related to this initiative.
Current wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Year-to-date in 2025, we recognized $8 million in Marketing and selling expenses related to this initiative.
Previous wording
In the first quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $35 million ($27 million after tax, or $0.09 per share). See Note 8 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Current wording
In the second quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $25 million ($19 million after tax, or $.06 per share). Year-to-date in 2025, the total aggregate impact related to the cost savings and optimization initiatives was $60 million ($46 million after tax, or $.15 per share). See Note 8 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Previous wording
•In the first quarter of 2025, we recognized gains in Cost of products sold of $4 million ($3 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the first quarter of 2024, we recognized losses in Cost of products sold of $15 million ($11 million after tax, or $.04 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Current wording
•In the second quarter of 2025, we recognized gains in Cost of products sold of $14 million ($10 million after tax, or $.03 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the second quarter of 2024, we recognized gains in Cost of products sold of $7 million ($5 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2025, we recognized gains in Cost of products sold of $18 million ($13 million after tax, or $.04 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2024, we recognized losses in Cost of products sold of $8 million ($6 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Previous wording
•In the first quarter of 2025 and 2024, we recorded accelerated amortization expense in Other expenses / (income) of $7 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023;
Current wording
•In the second quarter of 2025 and 2024, we recorded accelerated amortization expense in Other expenses / (income) of $7 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023. Year-to-date in 2025 and 2024, we recorded accelerated amortization expense in Other expenses / (income) of $14 million ($10 million after tax, or $.03 per share);
Previous wording
•In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business; and
Current wording
•In the second quarter of 2025, we recorded $15 million ($.05 per share) of deferred tax expense related to the sale of the noosa yoghurt business, which was completed on February 24, 2025. In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business. Year-to-date in 2025, the total aggregate impact of charges associated with divestitures was $25 million ($34 million after tax, or $.11 per share);
Previous wording
•In the first quarter of 2025, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. In the first quarter of 2024, we recorded litigation expenses in Administrative expenses of $2 million ($2 million after tax, or $.01 per share) related to Plum;
Current wording
•In the second quarter of 2025, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. In the second quarter of 2024, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to Plum. Year-to-date in 2025, we recorded litigation expenses in Administrative expenses of $2 million ($2 million after tax, or $.01 per share) related to Plum and certain other litigation matters. Year-to-date in 2024, we recorded litigation expenses in Administrative expenses of $3 million ($3 million after tax, or $.01 per share) related to Plum;
Previous wording
•In the first quarter of 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023. In the first quarter of 2024, we recorded costs of $2 million in Cost of products sold and $1 million in Administrative expenses (aggregate impact of $2 million after tax, or $.01 per share) related to the cybersecurity incident;
Current wording
•Year-to-date in 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023. Year-to-date in 2024, we recorded costs of $2 million in Cost of products sold and $1 million in Administrative expenses (aggregate impact of $2 million after tax, or $.01 per share) related to the cybersecurity incident;
Previous wording
•In the first quarter of 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment;
Current wording
•Year-to-date in 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment; and
Previous wording
•In the first quarter of 2024, we announced our intent to acquire Sovos Brands and on March 12, 2024, the acquisition closed. In the first quarter of 2024, we incurred costs associated with the acquisition in Other expenses / (income) of $9 million ($8 million after tax, or $.03 per share).
Current wording
•In the first quarter of 2024, we announced our intent to acquire Sovos Brands and on March 12, 2024, the acquisition closed. In the second quarter of 2024, we incurred costs associated with the acquisition in Other expenses / (income) of $10 million ($9 million after tax, or $.03 per share). Year-to-date in 2024, we incurred costs associated with the acquisition in Other expenses / (income) of $19 million ($17 million after tax, or $.06 per share).
Previous wording
Net earnings attributable to The Campbell's Company were $218 million ($.72 per share) in the current quarter, compared to $234 million ($.78 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to higher interest expense, higher marketing and selling expenses and higher administrative expenses, partially offset by an increase in gross profit.
Current wording
Net earnings attributable to The Campbell's Company were $173 million ($.58 per share) in the current quarter, compared to $203 million ($.68 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to higher marketing and selling expenses and higher interest expense, partially offset by an increase in gross profit.
Previous wording
Gross profit, defined as Net sales less Cost of products sold, increased by $79 million in 2025 from 2024. As a percent of sales, gross profit was 31.3% in 2025 and 2024.
Current wording
Gross profit, defined as Net sales less Cost of products sold, increased by $43 million in 2025 from 2024. As a percent of sales, gross profit was 30.5% in 2025 and 31.6% in 2024.
Previous wording
(2)Includes an 80 basis-point positive impact from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges, an estimated positive margin impact of 40 basis points from the benefit of cost savings initiatives and a 10-basis point prior-year impact from a cybersecurity incident, which were more than offset by the impact of cost inflation and other factors.
Current wording
(1)Includes an estimated positive margin impact of 50 basis points from the benefit of cost savings initiatives and a 30 basis-point positive impact from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges, which were more than offset by the impact of cost inflation and other factors.
Previous wording
(1)Includes the impact of operating leverage.
Current wording
(2)Includes the impact of operating leverage.
Previous wording
Administrative expenses as a percent of sales were 6.3% in 2025 and 2024. Administrative expenses increased 11% in 2025 from 2024. The increase was primarily due to higher general administrative costs and inflation (approximately 7 points); the impact of the acquisition (approximately 5 points) and higher costs associated with cost savings initiatives (approximately 4 points), partially offset by increased benefits from cost savings initiatives (approximately 4 points).
Current wording
Administrative expenses as a percent of sales were 6.1% in 2025 compared to 7.7% in 2024. Administrative expenses decreased 13% in 2025 from 2024. The decrease was primarily due to lower costs associated with cost savings initiatives (approximately 11 points) and increased benefits from cost savings initiatives (approximately 6 points), partially offset by the impact of the acquisition (approximately 5 points).
Previous wording
Operating earnings from Meals & Beverages increased 17%. The increase was primarily due to the benefit of the acquisition of Sovos Brands and lower marketing and selling expenses.
Current wording
Operating earnings from Meals & Beverages increased 18%. The increase was primarily due to the benefit of the acquisition of Sovos Brands, partially offset by higher marketing and selling expenses.
Previous wording
•costs of $29 million related to costs savings and optimization initiatives;
Current wording
•costs of $20 million related to costs savings and optimization initiatives;
Previous wording
•$1 million of certain litigation expenses, including expenses related to Plum;
Current wording
•$1 million of certain litigation expenses, including expenses related to Plum; and
Previous wording
•$2 million of Plum litigation expenses.
Current wording
•$1 million of Plum litigation expenses; and
Previous wording
Interest expense of $87 million in 2025 increased from $49 million in 2024 primarily due to higher levels of debt.
Current wording
Interest expense of $88 million in 2025 increased from $46 million in 2024 primarily due to higher levels of debt.
Previous wording
In Meals & Beverages, sales increased 22%, primarily due to a 22-point benefit from the acquisition of Sovos Brands. Excluding the benefit from the acquisition of Sovos Brands, sales were comparable as gains in Prego pasta sauces, Canada and foodservice were offset by declines in U.S. soup. Favorable volume/mix was offset by lower net price realization. Sales of U.S. soup decreased 4% primarily due to movements in retailer inventory levels influenced by the later timing of the Thanksgiving holiday this year.
Current wording
In Meals & Beverages, sales increased 22%, primarily due to a 22-point benefit from the acquisition of Sovos Brands. Excluding the benefit from the Sovos Brands acquisition, sales decreased primarily due to declines in U.S. soup and SpaghettiOs, partially offset by gains in foodservice and Prego pasta sauces. Lower net price realization was partially offset by favorable volume/mix. Sales of U.S. soup decreased 3% primarily due to decreases in ready-to-serve soups and condensed soups, partially offset by an increase in broth.
Previous wording
In Snacks, sales decreased 4%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased due to declines in third-party partner brands and contract manufacturing, Pepperidge Farm cookies, Goldfish crackers and Late July snacks. Sales were impacted by volume/mix declines and lower net price realization.
Current wording
In Snacks, sales decreased 5%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased due to declines in third-party partner brands and contract manufacturing, Goldfish crackers, Pepperidge Farm cookies and Snyder's of Hanover pretzels. Sales were impacted by volume/mix declines and lower net price realization.
Previous wording
Marketing and selling expenses as a percent of sales were 9.0% in 2025 compared to 8.8% in 2024. Marketing and selling expenses increased 13% in 2025 from 2024. The increase was primarily due to the impact of the acquisition (approximately 12 points) and higher costs associated with costs savings and optimization initiatives (approximately 3 points), partially offset by lower other marketing expenses (approximately 2 points).
Current wording
Marketing and selling expenses as a percent of sales were 9.3% in 2025 and 8.8% in 2024. Marketing and selling expenses increased 15% in 2025 from 2024. The increase was primarily due to the impact of the acquisition (approximately 11 points), higher advertising and consumer promotion expense (approximately 3 points) and higher costs related to cost savings and optimization initiatives (approximately 2 points), partially offset by lower other marketing expenses (approximately 1 point). The increase in advertising and consumer promotion expense was driven by Snacks and Meals & Beverages.
Previous wording
Other expenses were $43 million in 2025 compared to$24 million in 2024. Other expenses in 2025 included a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $7 million and a postretirement actuarial loss of $2 million. Other expenses in 2024 included costs associated with the acquisition of $9 million and accelerated amortization expense of $7 million.
Current wording
Other expenses were $84 million in 2025 compared to $50 million in 2024. Other expenses in 2025 included impairment charges related to the Allied brands and Late July trademarks of $26 million, a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $14 million and a postretirement actuarial loss of $2 million. Other expenses in 2024 included costs associated with the acquisition of $19 million and accelerated amortization expense of $14 million.
Previous wording
Segment operating earnings increased 7% in 2025 from 2024.
Current wording
Segment operating earnings increased 3% in 2025 from 2024.
Previous wording
Operating earnings from Snacks decreased 12%. The decrease was primarily due to lower gross profit. Gross profit decreased primarily due to the impact of cost inflation and other supply chain costs as well as unfavorable net price realization, partially offset by supply chain productivity improvements.
Current wording
Operating earnings from Snacks decreased 20%. The decrease was primarily due to lower gross profit and higher marketing and selling expenses. Gross profit decreased primarily due to the impact of cost inflation and other supply chain costs, unfavorable volume/mix and unfavorable net price realization, partially offset by supply chain productivity improvements and benefits from cost savings initiatives.
Previous wording
•$4 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Current wording
•$18 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Previous wording
•$15 million of unrealized mark-to-market losses on outstanding undesignated commodity hedges;
Current wording
•$8 million of unrealized mark-to-market losses on outstanding undesignated commodity hedges;
Previous wording
The effective tax rate was 23.2% in 2025 and 24.5% in 2024. Thedecrease in the effective tax rate was primarily due to excess tax benefits associated with the vesting of stock-based compensation awards.
Current wording
The effective tax rate was 26.4% in 2025 and 24.8% in 2024. The increase inthe effective tax rate was primarily due to $15 million ofdeferred tax expense recognized related to the sale of the noosa yoghurt business in the current year, partially offset byexcess tax benefits associated with the vesting of stock-based compensation awards in the current year and nondeductible costs associated with the acquisition of Sovos Brands in the prior year.
Previous wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $20 million in severance pay and benefits; approximately $50 million in asset impairment and accelerated depreciation; and approximately $120 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 72%; Snacks - approximately 12% and Corporate - approximately 16%.
Current wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $20 million in severance pay and benefits; approximately $50 million in asset impairment and accelerated depreciation; and approximately $120 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 72%; Snacks - approximately 9% and Corporate - approximately 19%.
Previous wording
Of the aggregate $190 million of pre-tax costs identified to date, we expect approximately $135 million will be cash expenditures. In addition, we expect to invest approximately $215 million in capital expenditures, of which we invested $18 million as of October 27, 2024. The capital expenditures primarily relate to optimization of production within our manufacturing network, implementation of our existing SAP enterprise-resource planning system for Sovos Brands and optimization of information technology infrastructure and applications.
Current wording
Of the aggregate $190 million of pre-tax costs identified to date, we expect approximately $135 million will be cash expenditures. In addition, we expect to invest approximately $215 million in capital expenditures, of which we invested $57 million as of January 26, 2025. The capital expenditures primarily relate to optimization of production within our manufacturing network, implementation of our existing SAP enterprise-resource planning system for Sovos Brands and optimization of information technology infrastructure and applications.
Previous wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $250 million by the end of 2028. As of October 27, 2024, we have generated total program-to-date pre-tax savings of $30 million.
Current wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $250 million by the end of 2028. As of January 26, 2025, we have generated total program-to-date pre-tax savings of $65 million.
Previous wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three-month period ended October 27, 2024, we incurred $8 million in Marketing and selling expenses related to this initiative. As of October 27, 2024, we have incurred $13 million in Marketing and selling expenses related to this initiative.
Current wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the six-month period ended January 26, 2025, we incurred $8 million in Marketing and selling expenses related to this initiative. As of January 26, 2025, we have incurred $13 million in Marketing and selling expenses related to this initiative.
Previous wording
We generated cash flows from operations of $225 million in 2025, compared to $174 million in 2024. The increase in 2025 was primarily due to changes in working capital and higher cash earnings.
Current wording
We generated cash flows from operations of $737 million in 2025, compared to $684 million in 2024. The increase in 2025 was primarily due to higher cash earnings and changes in working capital.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (18)
Current report — wording carried from elsewhere
Net earnings attributable to The Campbell's Company were $391 million ($1.30 per share) in the six-month period this year, compared to $437 million ($1.46 per share) in the year-ago period. After adjusting for items impacting comparability, earnings decreased primarily due to higher interest expense, higher marketing and selling expenses and higher administrative expenses, partially offset by an increase in gross profit.
Current report — wording carried from elsewhere
In Snacks, sales decreased 6%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased due to declines in third-party partner brands and contract manufacturing, Goldfish crackers and Snyder's of Hanover pretzels. Sales were impacted by volume/mix declines and lower net price realization.
Current report — wording carried from elsewhere
Other expenses were $41 million in 2025 compared to$26 million in 2024. Other expenses in 2025 included impairment charges related to the Allied brands and Late July trademarks of $26 million and accelerated amortization expense of $7 million. Other expenses in 2024 included costs associated with the acquisition of $10 million and accelerated amortization expense of $7 million.
Current report — wording carried from elsewhere
•$7 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Current report — wording carried from elsewhere
An analysis of net sales by reportable segment follows:
Current report — wording carried from elsewhere
An analysis of percent change of net sales by reportable segment follows:
Current report — wording carried from elsewhere
(1)Includes revenue reductions from trade promotion and consumer coupon redemption programs.
Current report — wording carried from elsewhere
Gross profit, defined as Net sales less Cost of products sold, increased by $122 million in 2025 from 2024. As a percent of sales, gross profit was 30.9% in 2025 and 31.4% in 2024.
Current report — wording carried from elsewhere
(1)Includes a 50 basis-point positive impact from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges and an estimated positive margin impact of 50 basis points from the benefit of cost savings initiatives, which were more than offset by cost inflation and other factors.
Current report — wording carried from elsewhere
(2)Includes the impact of operating leverage.
Current report — wording carried from elsewhere
An analysis of operating earnings by segment follows:
Current report — wording carried from elsewhere
(1)See Note 8 to the Consolidated Financial Statements for additional information on restructuring charges.
Current report — wording carried from elsewhere
Operating earnings from Meals & Beverages increased 18%. The increase was primarily due to the benefit of the acquisition of Sovos Brands.
Current report — wording carried from elsewhere
Corporate expense in 2025 included the following:
Current report — wording carried from elsewhere
•$2 million of certain litigation expenses, including expenses related to Plum;
Current report — wording carried from elsewhere
Corporate expense in 2024 included the following:
Current report — wording carried from elsewhere
•$3 million of Plum litigation expenses; and
Current report — wording carried from elsewhere
Interest expense of $175 million in 2025 increased from $95 million in 2024 primarily due to higher levels of debt.