The Campbell Company, known for its array of food products including soups, snacks, and beverages, reported its third quarter fiscal 2025 results, showing signs of stability in its Meals & Beverages segment but challenges in its Snacks division. The company is experiencing mixed performance, with a notable recognition of both successes and ongoing declines.

In the third quarter, Campbell’s showed a 4% increase in net sales, bringing the total to $2.475 billion. Organic net sales grew by 1%, primarily driven by a 2% favorable volume and mix. This growth can be attributed to the strong performance of its Meals & Beverages division, which reported a 15% increase in net sales and a 6% increase in organic sales, bolstered by the recent acquisition of Sovos Brands. Adjusted EBIT increased by 2% to $362 million, while adjusted EPS decreased by 3% to $0.73 per share.

The gross profit margin experienced a decrease of 110 basis points to 30.1%, influenced by inflationary pressures and supply chain costs. In contrast, the Snacks segment faced challenges, reporting an 8% decline in net sales and a 5% decrease in organic sales, primarily due to reduced volume and mix. Snacks operating earnings saw a decline of 13%.

In terms of guidance for the full fiscal year 2025, Campbell reaffirms its previous projections but now expects adjusted EPS to land at the low end of its guidance range due to the slower-than-anticipated recovery in the Snacks business. The company estimates that the impact of tariffs could potentially reduce adjusted EPS by an additional $0.03 to $0.05 per share. The overall financial position remains stable with $872 million in operating cash flow year-to-date and capital expenditures of $296 million.

The company also indicated a strong commitment to cost savings, having delivered approximately $110 million under a $250 million cost savings program initiated in September 2024. The future remains focused on driving operational efficiencies while navigating challenges in the current market landscape, particularly within the Snacks portfolio.

The results reflect Campbell’s dynamic operational environment as the company works to strengthen its overall market position amid competitive pressures in key segments. Despite the noted declines, the operational metrics highlight both the successes in the Meals & Beverages division and the ongoing need for strategic adjustments in Snacks.