Campbell's: annual targets revised downwards

(CercleFinance.com) - Campbell's on Wednesday lowered its guidance for fiscal 2024/2025 due to the changing consumer environment and the recent divestment of its noosa yogurt brand, causing its stock to fall in pre-market trading on Wall Street.


The American food group now expects annual net sales growth of 6% to 8%, compared with its previous range of 9% to 11%.

It also says it is targeting adjusted earnings per share (EPS) of $2.95 to $3.05 for the year ending July, instead of $3.12 to $3.22.

Analysts were expecting EPS of $3.12.

In its second quarter to the end of January, Campbell's saw its net sales rise by 9% to $2.7 billion, but its business declined by 2% on an organic basis due to the weakness of some of its snack brands, such as Goldfish cookies and Hanover pretzels.

Its adjusted operating profit (Ebit) rose by 2% to $372 million in the quarter, but this figure includes the effect of the acquisition of the Sovos Brands grocery brand.

Adjusted quarterly EPS, meanwhile, fell by 8% to $0.74.

Following these announcements, the share fell by almost 5% in electronic trading on Wednesday morning on the New York Stock Exchange.

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