Total Revenue

+10% (from $2,518M to $2,772M) " " " " "

The acquisition of Sovos Brands and continued net price realization contributed to revenue growth, offsetting modest volume declines. Favorable market conditions stabilized supply chain disruptions, further supporting top-line results.

Meals & Beverages

+22% (from $1,404M to $1,706M) " "

The integration of Sovos Brands drove most of the lift, especially in sauces and ready-to-serve meals. Despite some softness in U.S. soup volumes compared to last year, new product launches and strong branded performance helped achieve overall gains.

Cost of Goods Sold

+10% YoY " " " " "

Higher commodity and labor inflation drove up costs, partially offset by ongoing productivity and efficiency initiatives. The acquired Sovos operations also added incremental production expenses in the current period versus the prior year.

SG&A

+12% YoY " " " " "

Increased marketing spend and integration costs from Sovos Brands were the key factors. Although cost-saving measures continued, inflationary pressures on salaries, IT, and administrative functions elevated SG&A relative to the prior period.

Net Income

-7% (from $234M to $218M) " " " " "

Elevated interest expense from financing the Sovos acquisition, along with higher input costs, weighed on profitability. The benefits of pricing actions and incremental sales were not enough to fully offset these increased costs in the current period.

EPS (Basic)

-8% (from $0.79 to $0.73) " " " " "

The drop in net income and higher expense burden reduced per-share earnings. While acquisitions contributed to top-line gains, integration and financing costs diminished earnings leverage when compared to the same period last year.

Net Sales Growth (Reported)

FY 2025

9% to 11% "

9% to 11% "

no change

Organic Net Sales Growth

FY 2025

Flat to up 2% " "

Flat to up 2% "

no change

Adjusted EBIT Growth

FY 2025

9% to 11% " "

9% to 11% "

no change

Adjusted EPS

FY 2025

$3.12 to $3.22 " "

$3.12 to $3.22 "

no change

Adjusted Net Interest Expense

FY 2025

$350 million to $355 million "

$340 million to $345 million "

lowered

Sovos Brands Growth

FY 2025

High single-digit "

Slightly above 10% "

raised

Cost Savings Program

FY 2025

$70 million "

$90 million "

raised

Organic Net Sales Growth

Q2 2025

No prior guidance

Relatively flat year-over-year "

no prior guidance

Adjusted EPS

Q2 2025

No prior guidance

Low $0.70 range "

no prior guidance

Snacks segment margin improvement and consumer trade-down trends

Reached ~15% margin in FY24, with a target of +50 bps in FY25. Previously noted consumer trade-down in mainstream snack segments. " " " " " " " "

Operating margin declined to 13.3%, driven by inflation and lower price realization. Expect margin recovery in the second half. Ongoing private label pressure in base pretzels and cookies. " " " "

Still a priority; short-term margin weakness but long-term 17% margin goal remains intact.

Meals & Beverages growth (soups & sauces)

Continued focus on soups & sauces with consistent share gains; new households added for broth. " " " " " "

Solid momentum in soups (red & white cooking soups, broths) and Italian sauces (Rao’s, Prego). Expect modest broth share headwinds as private label recovers. " " " "

Ongoing emphasis as a core growth driver, with potential normalization of broth share.

Ongoing Rao’s brand performance and Sovos integration

Sovos added strong incremental growth. Synergies expected to reach ~$50MM annualized, Rao’s gaining share quickly. " " " " " " " " "

Rao’s grew 15% in-market consumption; Sovos integration delivered $9MM in Q1 cost synergies. Further expansion in premium segments. " " "

Continued acceleration with successful integration fueling brand expansion and cost savings.

Pricing vs. volume dynamics

Previous quarters saw moderate price increases offset by volume softness, with an expected shift to more balanced price-volume approach. " " " " " " "

Pricing turned more neutral, with volume up slightly in Meals & Beverages but down in Snacks. Emphasis on balanced promotional strategy in Snacks. " " " "

Price actions have normalized; volume showing signs of stabilization, especially in Meals & Beverages.

Shift in sentiment around Snacks margins

Previous calls noted cautious stance yet acknowledged steady margin gains toward 15%. " " " " "

Management remains cautiously optimistic, citing a weaker Q1 margin but anticipating second-half improvement. " "

Sentiment remains guarded but points to margin upside later in the fiscal year.

DSD transformation and Goldfish expansion

Previously highlighted DSD transformation as a multi-year route initiative. Goldfish expansion as a $1BN brand widely discussed in earlier calls. " " " " "

No explicit DSD mention beyond ongoing route optimization. Goldfish remained #1 with teens, but no major expansion details. " "

Mention less prominent; core references to DSD progress and Goldfish growth have diminished in this quarter’s commentary.

CEO departure as a new leadership factor

No prior mention of CEO departure or major leadership changes in earlier periods.

Mark Clouse announced retirement; transition to Mick Beekhuizen. Limited uncertainty, with leadership expressing confidence in strategy continuity. "

Newly introduced leadership transition; potentially a watch item for investor sentiment.

Inclusion of a 53rd week benefit in Q4

Q4 2024 call noted a possible $0.06 EPS boost; no mention in earlier periods. " "

Estimated $0.07 EPS benefit from the 53rd week, contributing to second-half earnings. " "

Newly emphasized factor supporting near-term EPS performance.

Potential normalization of broth market share

Prior calls flagged potential share reversion after benefiting from competitors’ supply constraints. " " " " "

Broth share may normalize as private label rebounds, creating a modest headwind later in FY25. "

Still a watch area; gained share may recede, but company expects some retained households.

High-impact growth: cost savings, Sovos synergies, marketing

Ongoing multi-year cost savings ($1BN goal), Sovos synergy targets ($50MM), and step-up marketing spend. " " " " "

Delivered $30MM cost savings in Q1 (including $9MM Sovos synergies); ramping marketing in Q2. " "

Continues to be a key lever for margin expansion and brand building, driving mid- to long-term growth.