Payment terms with suppliers (days)

2e008588b5d1b44c3fbff0f4c3a2a9bbf1a276b23e6245e9987124d24572d86e

| Metric (USD Million) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Meals & Beverages    | 1,408  **[0000016732-23-000037_cpb-20230129.htm:8]**  | 1,108  **[0000016732-23-000076_cpb-20230430.htm:8]**  | 936  **[0000016732-23-000105_exhibit991-q42023.htm:4]**  | 1,404  **[0000016732-23-000174_exhibit991-q12024.htm:2]**  | 2,786  **[0000016732-24-000039_cpb-20240128.htm:9]**  | 1,272  **[0000016732-24-000082_cpb-20240428.htm:11]**  | 1,200  **[0000016732-24-000124_exhibit991-q420248xka.htm:5]**  | 1,706  **[0000016732-24-000198_exhibit991-q12025.htm:3]**  |
| Snacks               | 1,077  **[0000016732-23-000037_cpb-20230129.htm:8]**  | 1,121  **[0000016732-23-000076_cpb-20230430.htm:8]**  | 1,132  **[0000016732-23-000105_exhibit991-q42023.htm:4]**  | 1,114  **[0000016732-23-000174_exhibit991-q12024.htm:2]**  | 2,188  **[0000016732-24-000039_cpb-20240128.htm:9]**  | 1,097  **[0000016732-24-000082_cpb-20240428.htm:11]**  | 1,093  **[0000016732-24-000124_exhibit991-q420248xka.htm:5]**  | 1,066  **[0000016732-24-000198_exhibit991-q12025.htm:3]**  |
| Total Net Sales      | 2,485  **[0000016732-23-000037_cpb-20230129.htm:8]**  | 2,229  **[0000016732-23-000076_cpb-20230430.htm:8]**  | 2,068  **[0000016732-23-000105_exhibit991-q42023.htm:4]**  | 2,518  **[0000016732-23-000174_exhibit991-q12024.htm:2]**  | 4,974  **[0000016732-24-000039_cpb-20240128.htm:9]**  | 2,369  **[0000016732-24-000082_cpb-20240428.htm:11]**  | 2,293  **[0000016732-24-000124_exhibit991-q420248xka.htm:5]**  | 2,772  **[0000016732-24-000198_exhibit991-q12025.htm:3]**  |

194b7627eebd51783052d4c78491c27fe61b7ca1dd94ceb6e9ec0509dbced675

Campbell Soup Company, known as CPB, is a prominent manufacturer and marketer of high-quality, branded food and beverage products **[0000016732-24-000130_cpb-20240728.htm:3]**. The company operates through two main segments: Meals & Beverages and Snacks, offering a wide range of products from soups and sauces to snacks and bakery items **[0000016732-24-000039_cpb-20240128.htm:27]**. CPB's products are distributed through various channels, with Wal-Mart Stores, Inc. being its largest customer, accounting for a significant portion of its sales in 2024 **[0000016732-24-000130_cpb-20240728.htm:18]**.

1. **Meals & Beverages** - Offers a diverse range of products including Campbell’s condensed and ready-to-serve soups, Swanson broth and stocks, Pacific Foods broth, soups and non-dairy beverages, Prego pasta sauces, Pace Mexican sauces, Campbell’s gravies, pasta, beans and dinner sauces, Swanson canned poultry, V8 juices and beverages, and Campbell’s tomato juice **[0000016732-24-000130_cpb-20240728.htm:3]** **[0000016732-24-000039_cpb-20240128.htm:27]**. Following the acquisition of Sovos Brands in March 2024, this segment also includes Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups, Michael Angelo's frozen entrées and pasta sauces, and noosa yogurts **[0000016732-24-000130_cpb-20240728.htm:81]** **[0000016732-24-000082_cpb-20240428.htm:11]**.

2. **Snacks** - Comprises a variety of snack products such as Pepperidge Farm cookies, crackers, fresh bakery and frozen products, including Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod potato chips, Kettle Brand potato chips, Late July snacks, and Snack Factory pretzel crisps **[0000016732-24-000130_cpb-20240728.htm:3]** **[0000016732-24-000130_cpb-20240728.htm:81]**. The segment included the Pop Secret popcorn business until its sale in August 2024 **[0000016732-24-000082_cpb-20240428.htm:11]**.

fef8a6caea80ca14fed14ca0cbf38fee9f52e43c07c47a661210faee71f6ac59

1. Given the strong momentum of Rao's among millennial households despite its premium pricing, how can you leverage learnings from Rao's to apply to other parts of your portfolio, and are there opportunities to drive similar value propositions with other brands?

2. With the second half earnings growth guidance being higher than some investors might be comfortable with, are there any unusual timing benefits or tailwinds we should consider, and how confident are you in achieving this guidance given current market conditions?

3. Considering the modest increase in full-year marketing and promotional investment, particularly in Q2 to support the holiday period, how does your current promotional spending compare to pre-pandemic levels, and could this increased activity impact your margins?

4. Gross margin and marketing expenses came in below expectations; can you explain how these components of EBIT margin performed versus your own projections, and what measures are you implementing to address any variances?

5. With Snacks margins at 13.3% this quarter, lower than expected, and facing pressures from pricing and supply chain inflation, can you still achieve your margin targets for this year and your longer-term goal of 17% margins in Snacks, especially if the category requires a value correction post-pandemic?

fb27bcaf3893bd5e788dd908ce5e547ee43898e7b94cf46c59c14f391d9bbbb0

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

37aa72443823539a0177f392f9ee56802ab8e11179580f74865f0939df957fd4

783a9815923a4b9235a607df9ad46f8559717ef5b5a1f1f6f934eb132cce1a47

3a97c20973cf7cc1c0eb1a3c54851feb798367085673903c136b3391b8d7256c

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Full Year Adjusted Net Interest Expense**: $340 million to $345 million  **[CPB_3410710_7]** .
  2. **Sovos Brands Growth**: Pro forma growth slightly above 10%  **[CPB_3410710_7]** .
  3. **Adjusted EPS**: Expected to be accretive in the second half and full fiscal year  **[CPB_3410710_7]** .
  4. **Q2 Organic Net Sales Growth**: Expected to be relatively flat  **[CPB_3410710_7]** .
  5. **Q2 Adjusted EPS**: Expected to be in the low $0.70 range  **[CPB_3410710_7]** .
  6. **Second Half Organic Growth**: Expected to modestly improve  **[CPB_3410710_7]** .
  7. **Second Half Adjusted EPS**: Expected to progress with a $0.07 benefit from the 53rd week  **[CPB_3410710_7]** .
  8. **Full Year Guidance**: Reaffirmed with a range based on consumer landscape normalization  **[CPB_3410710_6]** .
  9. **Cost Savings**: Expected to be $90 million  **[CPB_3410710_6]** .
  10. **Impact of Noosa Divestiture**: Dilutive by approximately $0.01  **[CPB_3410710_7]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Adjusted EBIT Growth**: 9% to 11%  **[CPB_3400204_8]** .
  2. **Core Inflation**: Low single-digit range  **[CPB_3400204_8]** .
  3. **Productivity Improvements**: Approximately 3%  **[CPB_3400204_8]** .
  4. **Enterprise Cost Savings**: $70 million  **[CPB_3400204_8]** .
  5. **Adjusted Marketing and Selling Expense**: 9% to 10% of net sales  **[CPB_3400204_8]** .
  6. **Adjusted EPS**: Increase 1% to 4%, $3.12 to $3.22  **[CPB_3400204_8]** .
  7. **Adjusted Net Interest Expense**: $350 million to $355 million  **[CPB_3400204_8]** .
  8. **Capital Expenditures**: Approximately 5% of net sales  **[CPB_3400204_8]** .
  9. **Snacks Operating Margin**: Modestly above fiscal 2024  **[CPB_3400204_8]** .
  10. **Meals & Beverages Operating Margin**: Modestly lower  **[CPB_3400204_8]** .
  11. **Full Year Reported Net Sales**: Increase 9% to 11%  **[CPB_3400204_7]** .
  12. **Full Year Organic Net Sales Growth**: Flat to up 2%  **[CPB_3400204_7]** .
  13. **53rd Week Benefit**: Contributes approximately 2 points to growth  **[CPB_3400204_7]** .
  14. **Sovos Brands Pro Forma Net Sales Growth**: High single-digit range  **[CPB_3400204_7]** .
  15. **Q1 Adjusted EPS**: Mid- to high $0.80 range  **[CPB_3400204_8]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales**: Increase 3% to 4%  **[CPB_3391680_8]** .
  2. **Adjusted EBIT Growth**: 6.5% to 7%  **[CPB_3391680_9]** .
  3. **Adjusted EPS**: Up 2% to 3%, $3.07 to $3.10  **[CPB_3391680_9]** .
  4. **Cost Savings**: $55 million to $60 million  **[CPB_3391680_9]** .
  5. **Adjusted Net Interest Expense**: Approximately $245 million  **[CPB_3391680_9]** .
  6. **Capital Expenditures**: Approximately $500 million  **[CPB_3391680_9]** .
  7. **Transaction-related Depreciation and Amortization Expense**: $15 million to $20 million  **[CPB_3391680_9]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Guidance**: Reaffirmed with expected earnings growth and margin progress  **[CPB_3376681_8]** .
  2. **Adjusted EPS**: Q3 expected in the lower $0.70 range  **[CPB_3376681_8]** .
  3. **Net Sales Guidance**: Pacing to the lower end of the range  **[CPB_3376681_8]** .
  4. **Marketing and Selling Expenses**: Low end of 9% to 10% range  **[CPB_3376681_8]** .
  5. **Snacks Operating Margin**: Increase by 100 basis points per year  **[CPB_3376681_7]** .
  6. **Cost Savings Program**: On track for $1 billion by fiscal 2025  **[CPB_3376681_6]** .
  7. **Inflation**: Low single-digit range  **[CPB_3376681_6]** .
  8. **Sovos Brands Acquisition**: Expected to close in March 2024  **[CPB_3376681_8]** .

1f350399c03b5f887d00848ee83673eab39f3869d93b45ad5fcfb3974509399d

6bc6df928302774a266978a47a6d7ea47c0610e32f50c798f6edb73c64a89f63

ce3a668ca1e167f6215d9c22f4ee169e6eaf3ae32f7630fb3956ccfddcf0535a

| Name                  | Position                                                   | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark A. Clouse        | President and CEO                                          | January 22, 2019    | Mark A. Clouse was named President and CEO of Campbell Soup Company effective January 22, 2019. He previously served as CEO of Pinnacle Foods, Inc. and held executive roles at Mondelēz International and Kraft Foods  **[0001308179-24-000723_cpb4347611-pre14a.htm:23]** **[0001308179-24-000757_cpb4347611-def14a.htm:23]** **[0001308179-23-001035_lcpb2023_def14a.htm:20]** .               |
| Carrie L. Anderson    | Executive Vice President and CFO                           | 2023                | Carrie L. Anderson serves as the Executive Vice President and CFO at CPB since 2023. She was previously CFO at Integra LifeSciences Holdings Corporation and Vice President and Controller at Dover Corporation  **[0000016732-23-000109_cpb-20230730.htm:29]** **[0000016732-24-000130_cpb-20240728.htm:32]** .                        |
| Mick J. Beekhuizen    | Executive Vice President and President, Meals & Beverages  | 2022                | Mick J. Beekhuizen joined Campbell's in September 2019 as CFO and has served as President of Meals & Beverages since 2022. He was previously CFO at Chobani LLC  **[0000016732-24-000198_exhibit992-q12025.htm:0]** **[0000016732-24-000130_cpb-20240728.htm:32]** .                                                                         |
| Diane Johnson May     | Executive Vice President and Chief People and Culture Officer | November 2021       | Diane Johnson May joined CPB in November 2021, leading initiatives for an inclusive, high-performing culture and overseeing HR functions  **[0001308179-24-000723_cpb4347611-pre14a.htm:65]** **[0001308179-24-000757_cpb4347611-def14a.htm:65]** .                                                                                                 |
| Daniel L. Poland      | Executive Vice President and Chief Supply Chain Officer    | January 2022        | Daniel L. Poland joined CPB in January 2022, leading the end-to-end supply chain, including procurement, food safety, and logistics  **[0001308179-24-000723_cpb4347611-pre14a.htm:65]** **[0001308179-24-000757_cpb4347611-def14a.htm:65]** **[0000016732-23-000109_cpb-20230730.htm:29]** **[0000016732-24-000130_cpb-20240728.htm:32]** .                                                                                               |
| Charles A. Brawley, III | Executive Vice President, General Counsel, and Corporate Secretary | 2023                | Charles A. Brawley, III serves as the Executive Vice President, General Counsel, and Corporate Secretary at CPB, having been in an executive role for at least five years  **[0000016732-24-000130_cpb-20240728.htm:32]** .                                                                  |
| Christopher D. Foley  | Executive Vice President and President, Snacks             | 2019                | Christopher D. Foley has been with CPB in an executive capacity for at least five years, appointed as an executive officer in 2019  **[0000016732-23-000109_cpb-20230730.htm:29]** **[0000016732-24-000130_cpb-20240728.htm:32]** .                                                                                                       |
| Anthony J. Sanzio     | Executive Vice President and Chief Communications Officer  | 2022                | Anthony J. Sanzio has been with CPB in an executive capacity for at least five years, appointed as an executive officer in 2022  **[0000016732-24-000130_cpb-20240728.htm:32]** .                                                                                                            |
| Mark A. Clouse        | Current President and CEO (Retiring January 31, 2025)      | January 31, 2025    | Mark A. Clouse is set to retire from Campbell's on January 31, 2025. He has been President and CEO since January 22, 2019, with prior roles at Pinnacle Foods, Mondelēz International, and Kraft Foods  **[0000016732-24-000198_cpb-20241201.htm:2]** **[0001308179-24-000723_cpb4347611-pre14a.htm:23]** **[0001308179-23-001035_lcpb2023_def14a.htm:20]** .                               |
| Mick Beekhuizen       | Upcoming President and CEO (Effective February 1, 2025)    | February 1, 2025    | Mick Beekhuizen will become President and CEO of Campbell's effective February 1, 2025. He joined Campbell's in September 2019 as CFO and has been President of Meals & Beverages since 2022  **[0000016732-24-000198_exhibit992-q12025.htm:0]** **[0000016732-24-000198_cpb-20241201.htm:2]** .                                            |

20201973b6061ab34b11bdac91a366e1dce58e1d42251a95585856fb31059358

| Program Details          | Program 1            | Program 2            |
|--------------------------|----------------------|----------------------|
| Approval Date            | September 2021  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  | September 2024  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  |
| End Date/Duration        | No expiration date  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  | No expiration date  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  |
| Total Additional Amount  | **$500 million**  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  | **$250 million**  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  |
| Remaining Authorization  | **$301 million**  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:37]**  | **$206 million**  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:37]**  |
| Details                  | Open-market or privately negotiated transactions  **[0000016732-24-000201_cpb-20241027.htm:21]** **[0000016732-24-000201_cpb-20241027.htm:45]** **[0000016732-24-000201_cpb-20241027.htm:37]**  | Anti-dilutive, open-market or privately negotiated transactions  **[0000016732-24-000130_cpb-20240728.htm:104]** **[0000016732-24-000201_cpb-20241027.htm:45]**  |

8554fa506da392aa2144cb6568659b57895d74d67ab20d8981d8840167dcfcc8

United States

Australia

Other

Meals & Beverages

Snacks

Total Revenue

64a4ac0afbe10882bbab906410bb7273449da75eeb391b872462f14bc5fce12a

**Quarterly guidance for Q2 2025:**
- **Organic Net Sales Growth**: relatively flat  **[CPB_3410710_7]**  (no prior guidance)
- **Adjusted EPS**: in the low $0.70 range  **[CPB_3410710_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Adjusted Net Interest Expense**: $340 million to $345 million  **[CPB_3410710_7]**  (lowered from $350 million to $355 million  **[CPB_3400204_8]** )  
- **Sovos Brands Growth**: pro forma slightly above 10%  **[CPB_3410710_7]**  (raised from high single-digit range  **[CPB_3400204_7]** )  
- **Cost Savings**: $90 million  **[CPB_3410710_6]**  (raised from $70 million  **[CPB_3400204_8]** )  
- **Impact of Noosa Divestiture**: dilutive by approximately $0.01  **[CPB_3410710_7]**  (no prior guidance)  
- **Adjusted EPS**: expected to be accretive in the second half and full fiscal year  **[CPB_3410710_7]**  (no direct numeric comparison to prior $3.12–$3.22 guidance  **[CPB_3400204_8]** )  

57582681340464511ebb57256e7e190b35fd3e6b283eef3bf2594ab4b7bc38e3

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP   | 1954  **[0000016732-24-000130_cpb-20240728.htm:119]**    | Present  | Current auditor   |

7d7e86373e1c8ab6a1d368ea2ae195b5df4763039f8aeb0d1f2e0bf84307f29a

df1137fa6b2aad6597039f4e31897714cfee40df0a00cc12b234fe61ede7369a

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- **Total Revenue**: $2,772 million (+10% YoY from $2,518 million)  **[0000016732-24-000201_cpb-20241027.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:2]** **[0000016732-23-000176_cpb-20231029.htm:8]** **[0000016732-23-000176_cpb-20231029.htm:4]**   
- Meals & Beverages: $1,706 million (**+22%** YoY from $1,404 million)  **[0000016732-24-000201_cpb-20241027.htm:31]** **[0000016732-23-000176_cpb-20231029.htm:8]**   
- Cost of Goods Sold (COGS): $1,905 million (+10% YoY)  **[0000016732-24-000201_cpb-20241027.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:2]** **[0000016732-23-000176_cpb-20231029.htm:8]** **[0000016732-23-000176_cpb-20231029.htm:4]**   
- SG&A: $425 million (+12% YoY)  **[0000016732-24-000201_cpb-20241027.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:2]** **[0000016732-23-000176_cpb-20231029.htm:8]** **[0000016732-23-000176_cpb-20231029.htm:4]**   
- Net Income: $218 million (-7% YoY from $234 million)  **[0000016732-24-000201_cpb-20241027.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:2]** **[0000016732-23-000176_cpb-20231029.htm:8]** **[0000016732-23-000176_cpb-20231029.htm:4]**   
- EPS (Basic): $0.73 (-8% YoY from $0.79)  **[0000016732-24-000201_cpb-20241027.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:1]** **[0000016732-23-000176_cpb-20231029.htm:2]** **[0000016732-23-000176_cpb-20231029.htm:8]** **[0000016732-23-000176_cpb-20231029.htm:4]**   

b95784c86d8c509c5d2a8799a5ee8e9f1f18d46b11238c162f197e15df0aef68

ed9f640fca62783676dea80fca673701227e39875d6b41bacf00958ae4df831e

1. **Back Half Guidance**  
   **Q:** Why is guidance tracking toward the lower end, and what's driving confidence in second-half growth?  
   **A:** Management notes that while sales are tracking toward the lower end of full-year guidance due to industry challenges, they expect sequential improvement in the back half ( **[CPB_3376681_9]** ,  **[CPB_3376681_10]** ). Factors include lapping easier year-over-year comparisons—first-half growth rates of **13–14%** down to **5%** in the back half, and lapping a vol/mix decline shifting from **1.5%** to **6%** ( **[CPB_3376681_9]** ). Additional drivers are a strong innovation pipeline contributing about **1%** of growth, sustained marketing investment at **9% of net sales**, and positive consumer indicators like improving sentiment and household penetration ( **[CPB_3376681_9]** ). They remain pragmatic but optimistic about achieving the expected turnaround.

2. **Salty Snacks Market Dynamics**  
   **Q:** Is the salty snacks category facing weakness and irrational pricing?  
   **A:** Management acknowledges slight moderation in the snacks category but sees no structural issues or irrational pricing behaviors ( **[CPB_3376681_11]** ). On a two-year basis, power brands within salty snacks are up **12%**, indicating strong underlying demand ( **[CPB_3376681_11]** ). They attribute current softness to lapping strong growth and remain confident in the category's long-term health.

3. **DSD Route Optimization**  
   **Q:** What are the expected savings from optimizing DSD routes?  
   **A:** The company is consolidating **20%** of their Direct Store Delivery (DSD) routes to improve efficiency ( **[CPB_3376681_13]** ,  **[CPB_3376681_14]** ). This strategy is projected to contribute approximately **50 basis points** to margin improvement by fiscal **2026** ( **[CPB_3376681_14]** ). Early results show expedited route conversions and better economics for independent distributors, enhancing in-store execution and supporting top-line growth ( **[CPB_3376681_13]** ,  **[CPB_3376681_14]** ).

4. **Company Portfolio Strategy**  
   **Q:** Is a company split being considered, and how do the two businesses fit together?  
   **A:** Management is focused on executing their strategy to strengthen both the Meals & Beverages and Snacks divisions ( **[CPB_3376681_15]** ). While open to evaluating options that enhance shareholder value, they would consider a split only from a position of strength ( **[CPB_3376681_15]** ). Currently, they see value in the combined portfolio and are committed to maximizing its potential.

5. **Goldfish Brand Performance**  
   **Q:** Can Goldfish's success be replicated across other snack brands?  
   **A:** Goldfish gained dollar share in the second quarter due to strong base business support and innovations like Goldfish Crisps ( **[CPB_3376681_16]** ). The company plans to apply this successful playbook to other brands, using limited-time offerings and flavor variety to drive growth across the portfolio ( **[CPB_3376681_16]** ).

6. **Canada and Foodservice Contribution**  
   **Q:** How did Canada and Foodservice contribute to Meals & Beverages, and what's expected ahead?  
   **A:** Canada delivered an especially strong quarter, contributing about **1 point** of growth to Meals & Beverages ( **[CPB_3376681_12]** ). Foodservice also performed well. These areas helped offset inventory pressures, and the company expects continued positive contributions in the second half ( **[CPB_3376681_12]** ).

97c3e10cb0748ab84050babe6e491afdd0cde19aa06852dc3ed865c18f107793

- **Campbell Soup Company is tracking toward the lower end of its full-year sales guidance due to slower-than-expected recovery in certain categories, especially in the Snacks business.**  **[CPB_3376681_9]** **[CPB_3376681_10]**
- **The Snacks category is experiencing weaker dynamics, with moderation in category performance and potential competitive pricing pressures impacting overall growth.**  **[CPB_3376681_11]** **[CPB_3376681_10]**
- **Continued softness in ready-to-eat soups adds to the company's cautious outlook, indicating ongoing challenges in key product segments.**  **[CPB_3376681_10]**

414a8e870928771b7b31e2f12d6e5925cd15b8940de5d63a70b386829069f651

1. **Margin Expansion Outlook**  
   **Q:** What's driving the acceleration in gross margins into Q4 and beyond?  
   **A:** Mark Clouse explained that they expect significant gross margin expansion in Q4 due to cycling a tough prior-year quarter.  **[CPB_3391680_13]**  Productivity gains, supply chain improvements, and recovery in the soup business will lead to a **30% EBIT growth** and strong EPS growth.  **[CPB_3391680_13]** 

2. **Confidence in FY25 Recovery**  
   **Q:** What gives you confidence in a full recovery in first half of '25 despite lowering '24 forecast?  
   **A:** Mark Clouse believes the recovery will occur as the Snacks business cycles through consumer adjustments.  **[CPB_3391680_10]**  With categories normalizing and strong execution, he expects improvement in the first half of FY25, although it may be **6 months later** than desired.  **[CPB_3391680_10]** 

3. **Pricing Strategy and Consumer Impact**  
   **Q:** Do you worry about overpricing and need for price rollbacks given consumer burden?  
   **A:** Mark Clouse doesn't see significant overpricing yet but acknowledges the need to monitor price gaps and remain competitive through promotions.  **[CPB_3391680_14]**  They plan to maintain reasonable price gaps without drastic price reductions.  **[CPB_3391680_14]** 

4. **Rao's Growth Opportunity**  
   **Q:** How should we think about Rao's as a growth engine moving forward?  
   **A:** Mark Clouse is very positive about Rao's integration, noting that all assumptions have been validated or exceeded.  **[CPB_3391680_11]**  They see upside in deal economics, business health, innovation, and synergies, and plan to share more details at the Investor Day in September.  **[CPB_3391680_11]** 

5. **Snacks Segment Price/Mix Outlook**  
   **Q:** What should we expect from price/mix in the Snacks segment over the next quarters?  
   **A:** Mark Clouse expects to remain competitive with continued promotions, investing around **100 basis points** in promotional activity in Q4.  **[CPB_3391680_12]**  They aim to maintain value through innovation and marketing without drastically reducing prices.  **[CPB_3391680_12]** 

6. **Meals & Beverages Pricing Down 1%**  
   **Q:** Why was pricing down 1% in Meals & Beverages, and what's the outlook?  
   **A:** Mark Clouse explained they've adjusted price gaps to remain competitive, especially in condensed soup where private label had gained share.  **[CPB_3391680_12]**  Strategic pricing and promotions have stabilized share while maintaining healthy gross margins.  **[CPB_3391680_12]** 

7. **Foodservice as a Growth Driver**  
   **Q:** How is foodservice a source of upside in Meals & Beverages?  
   **A:** Supply chain improvements have expanded capacity, allowing growth in snacks and frozen soup in foodservice channels.  **[CPB_3391680_13]**  Increased demand for frozen soup as a menu item is supporting growth in this segment.  **[CPB_3391680_13]** 

8. **Snacks Segment Tailwinds**  
   **Q:** Are you seeing any benefit from potential tailwinds in Snacks?  
   **A:** Mark Clouse is optimistic, citing a **3-year CAGR of 8%** in the third quarter and improving trends in recent weeks.  **[CPB_3391680_14]**  He doesn't see structural changes in snacking demand and believes their portfolio is well-positioned in elevated segments less affected by private label.  **[CPB_3391680_14]** 

32a718f9d35e8f6a2cb8cde11eea034eb87f50bc884f30d54f7b4c09f94b9ce9

- **Strong Growth of Power Brands**: Campbell's power brands, which represent **two-thirds** of their business, are up **12%** on a 2-year basis, indicating strong underlying performance. Specifically, the **Goldfish** brand has gained dollar share in the second quarter, driven by successful innovation and expansion into new consumer segments, serving as a blueprint for growth across other brands like Late July and Kettle.  **[CPB_3376681_10]** **[CPB_3376681_16]**
- **Anticipated Second-Half Performance Boost**: The company anticipates stronger performance in the second half of the fiscal year due to easier comparisons, a robust innovation pipeline contributing about **1%** growth, focused marketing efforts, and improving consumer sentiment indicators such as increased household penetration and purchase frequency.  **[CPB_3376681_9]**
- **Margin Improvement Through Route Optimization**: Campbell is optimizing their route to market, particularly their Direct Store Delivery (DSD) model, expecting to improve margins by approximately **50 basis points**, potentially exceeding their **17%** operating margin target for Snacks by fiscal **2026**, indicating strong future profitability and efficiency gains.  **[CPB_3376681_14]**

064fe15b207d062b118dbe1beaa227a2f1589369efb289e583779cf1d3853cf4

- **Campbell is experiencing increased competition in its Snacks segment, with pressure from private labels leading to a slowdown in sales among lower and middle-income consumers.** The recovery in this segment is expected to be delayed into the first half of fiscal 2025, which is **six months later than originally anticipated**.  **[CPB_3391680_10]**
- **The company's condensed soup business is facing competitive pressure from private labels, leading to trade-down by consumers and a category decline of about 4%.** Campbell has had to fine-tune its pricing strategy to address this challenge, indicating vulnerability in its core product lines.  **[CPB_3391680_13]**
- **There is potential risk of overpricing in the current economic environment, as consumers are burdened by inflation.** Campbell acknowledges the need to monitor price gaps and increase promotional activity, which could pressure margins and affect profitability.  **[CPB_3391680_16]**

eea749d5d600cd34853b83d769dfe0cd5d861efa768fe9dea9721e30f4024c54

- The company expects **EBIT growth in the 30% range** in Q4, leading to **strong EPS growth and margin expansion** across the board.  **[CPB_3391680_14]**
- Anticipates the **Snacks business to fully recover in the first half of fiscal 2025**, with volume trends improving.  **[CPB_3391680_15]**
- The **Meals & Beverages segment** is showing positive signs, with the **soup business recovering** and moving into **positive territory in both units and dollars**, supporting a favorable profit trajectory.  **[CPB_3391680_10]**

88cd4311d8a3c03afaf9404ace33711d734b89bc16460a15dc3adbaf10af83e3

1. **Snacks Competition**  
   **Q:** How will you counter new entrants in Snacks?  
   **A:** We face pressure from new entrants in salty snacks, particularly in pretzels, kettle chips, and better-for-you tortillas.  **[CPB_3400204_12]**  Our brands like **Snyder's of Hanover**, **Snack Factory**, and **Goldfish** in pretzels, and **Kettle** and **Cape Cod** in chips, are well-positioned to defend.  **[CPB_3400204_12]**  We'll increase innovation and marketing support, ensuring promotional frequency and price gaps remain reasonable.  **[CPB_3400204_12]**  We're confident in our ability to address this challenge as we enter fiscal '25.  **[CPB_3400204_12]** 

2. **Meals & Beverages Growth**  
   **Q:** What drives the growth in Meals & Beverages, and is it sustainable?  
   **A:** **Organic sales** in Meals & Beverages rose **1%**, with a **2% volume gain**, showing momentum even without Sovos in the base.  **[CPB_3400204_10]**  Growth is driven by consumers eating more at home, which fits well with our brands.  **[CPB_3400204_10]**  **Soup volumes** are up without sacrificing margins.  **[CPB_3400204_10]**  Our **sauce business** is performing well, with **Rao's** brand up **25%** in the fourth quarter.  **[CPB_3400204_10]**  We expect **high single-digit growth** for Rao's in '25 and mid-single-digit growth longer term.  **[CPB_3400204_10]** 

3. **Positioning in Recession**  
   **Q:** How are you positioned if a recession occurs?  
   **A:** While we don't expect a radical recovery, our diversified portfolio is well-suited for challenging times.  **[CPB_3400204_16]**  If the environment worsens, we don't anticipate a dramatic step-down since we're cycling more muted baselines.  **[CPB_3400204_16]**  Our brands benefit from consumers eating more at home, and **snacks have historically been resilient** in downturns.  **[CPB_3400204_16]**  Our plan doesn't assume outsized recovery; we describe the consumer as slightly positive but still fragile.  **[CPB_3400204_16]** 

4. **Marketing Investment**  
   **Q:** Where will you focus your increased marketing spend in 2025?  
   **A:** We'll balance value-centric messaging with building brand equity and innovation.  **[CPB_3400204_19]**  In premium products like **Rao's**, we'll highlight value through quality and convenience.  **[CPB_3400204_19]**  We'll invest more in marketing to support innovation, particularly in snacks where we face new competition.  **[CPB_3400204_12]** **[CPB_3400204_19]**  Driving equity and news behind our brands will be key to winning in elevated segments.  **[CPB_3400204_19]** 

5. **Guidance Clarification**  
   **Q:** How does the 53rd week affect your organic sales guidance?  
   **A:** The benefit of the **53rd week** is **not included** in our organic net sales growth.  **[CPB_3400204_15]** **[CPB_3400204_17]**  We'll report it separately, but it has been removed from the organic growth calculation.  **[CPB_3400204_17]**  We don't anticipate a significant drop-off in the second quarter; factors like the holiday season and new innovation launches will benefit sales.  **[CPB_3400204_15]** 

8435f3ed4faf3034245efdc29aa22e528effc914a379f3e2230048e100adec51

- **Campbell's Meals & Beverages division is showing strong momentum**, with **organic sales up 1%** and a **2% gain in volume**, even without the contribution from Sovos Brands. This growth is driven by the recovery in soup volume and the continued success of their sauce business, including **Rao's, which was up 25% in the fourth quarter**.  **[CPB_3400204_10]**
- **The company is confident in its ability to navigate potential economic downturns** due to its strong portfolio of brands that are well-suited to in-home consumption trends. Even in a tougher environment, Campbell's expects to be in a positive position, given that their brands play a significant role in categories where consumers are pulling back from eating meals away from home.  **[CPB_3400204_16]**
- Despite **competitive pressures in the Snacks division**, particularly from **new entrants in the salty snacks category**, Campbell's is addressing these challenges through increased **innovation and marketing investment**. The company believes its well-positioned brands and robust innovation pipeline will enable it to **defend its market share and drive growth** in the elevated snacking segments.  **[CPB_3400204_12]**

dcc7d02c2ab1296193aed69dd086a38735a183a2dc78cc43372da64212467fea

- The company's expectations for second-half improvement may be **overly optimistic**, relying on factors like cost savings, integration benefits, and a 53rd week, while other industry players anticipate continued challenges, potentially leading to **disappointment in meeting guidance**.  **[CPB_3410710_11]** **[CPB_3410710_10]**
- **Gross margins** were pressured due to a **softer organic business** and **unfavorable mix**, partly because of stronger performance from lower-margin acquisitions like Sovos; this could continue to impact profitability if organic sales do not improve.  **[CPB_3410710_8]**
- **Snacks operating margin** decreased **120 basis points** to **13.3%**, lower than expected, with competitive pressures in the **salty snacks** category potentially leading to a **value correction** and impacting the company's ability to achieve margin targets both this year and longer term.  **[CPB_3410710_15]**

b10fba78477eb09f270a40ebb54a2b30c9816146bfdc1a3ed559cd65725eea41

- **Increased competitive pressure in the Snacks division from new entrants** is impacting Campbell's market share, particularly in key categories like salty snacks. Mark Clouse acknowledged they faced pressure from new entrants in pretzels, kettle chips, and better-for-you tortilla chips, which contributed to Snacks' **3% decline for the quarter**.  **[CPB_3400204_12]**
- **Uncertainty regarding the pace of industry recovery**, with recovery taking longer than expected and consumer confidence remaining fragile. Mark Clouse admitted that while they are not seeing significant negative indicators, the recovery **"has been a little bit longer runway... than I would have liked"**, and the consumer is **"still fragile"**.  **[CPB_3400204_11]** **[CPB_3400204_16]**
- **Reliance on competitor supply issues for growth in the broth business** may pose a risk as those issues resolve. Campbell experienced **robust share gains in Swanson broth as a major private label supplier was experiencing supply constraints**, which may not be sustainable as the competitor recovers.  **[CPB_3400204_10]**

fc9427e66f8852a26569fb8091190e16d8d32dbd76c916c04eef4b4a7378fbd3

- **The integration of Sovos Brands, particularly the Rao's brand, is exceeding expectations, now expected to be accretive to adjusted EPS in fiscal '25, and contributing positively to organic growth in the second half.**  **[CPB_3410710_10]** **[CPB_3410710_17]**
- **Cost savings initiatives and productivity improvements are progressing well, with confidence in achieving margin expansion, especially in the Snacks division, driven by higher leadership brand mix and operational efficiencies.**  **[CPB_3410710_15]** **[CPB_3410710_10]**
- **The company anticipates organic growth to modestly improve in the second half of fiscal '25, supported by the addition of Sovos into organic growth, improving consumer trends, and sequential top line and market share momentum.**  **[CPB_3410710_11]** **[CPB_3410710_10]**

b83d223b0ed60ffb36ff03fdaff54370804368d8169cf083d57306d1d265224b

Campbell's Co (CPB)

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