Q4 2024 Campbell Soup Co Earnings Call Transcript
Key Points
- Sequential volume improvement across both divisions, with double-digit year-over-year adjusted EBIT and EPS growth.
- Successful integration and momentum of Sovos Brands, contributing positively to Meals & Beverages.
- Strong performance in the Soup business, with dollar consumption up 2% and 6% in the latest four weeks.
- Rao's brand continues to show strong growth, with high consumer acceptance across all economic demographics.
- Improved operating margins in both Meals & Beverages and Snacks divisions, reflecting effective cost management and productivity initiatives.
- Organic net sales declined 1% in Q4 compared to the prior year, driven by headwinds in the Snacks business.
- Snacks category recovery is slower than expected, with competitive pressure from new entrants affecting market share.
- Unfavorable net pricing realization and moderate cost inflation impacting adjusted gross profit margins.
- Pressure on ready-to-serve soup category, with some trading down observed.
- Expected normalization of broth share in the second half of fiscal '25, potentially impacting overall sales growth.
Good morning, and welcome to Campbell's fourth-quarter fiscal 2024 earnings conference call. I'm Rebecca Gardy, Chief Investor Relations Officer at Campbell's. And joining me today are Mark Clouse, Chief Executive Officer; and Carrie Anderson, Chief Financial Officer.
Today's remarks have been prerecorded. Once we conclude the prepared remarks, we will transition to a live webcast Q&A session. The slide deck and today's earnings press release have been posted to the Investor Relations section on our website, campbellsoupcompany.com. Following the conclusion of the Q&A session, a replay of the webcast will be available at the same location, followed by a transcript of the call within 24 hours.
Statements On our call today, we will make forward-looking statements, which reflect our current expectations. These statements rely on assumptions and estimates, which could be inaccurate and are subject to risk.
Please refer to slide 3 of our presentation or our SEC filings for a list of
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