Campbell Soup Q3 Sales Rise 4% Sovos Acquisition Boost Meals Beverage Snack Sales Decline

Campbell Soup Company reported mixed third-quarter fiscal 2025 results, with total net sales rising 4% to $2.5 billion, largely driven by the acquisition of Sovos Brands and a 15% sales increase in its Meals & Beverages segment fueled by increased at-home cooking. Despite this growth, the Snacks segment experienced an 8% decline due to reduced consumer discretionary spending, heightened competition, and volume declines, particularly impacting products like Goldfish crackers. CEO Mick Beekhuizen highlighted that consumers are cooking at home at the highest levels since early 2020, boosting demand for meals and beverages, but noted that snack purchases are contracting as consumers become more selective and budget-conscious. The company reaffirmed its full-year guidance but expects adjusted EPS at the lower end of its range, partly due to higher interest expenses and potential tariff impacts, which it is managing through cost controls and pricing strategies. Campbell is actively working to reinvigorate its snacks portfolio with new product innovations and increased marketing efforts. Overall, Campbell remains focused on leveraging its scale for growth and long-term value creation amid a dynamic operating environment marked by shifting consumer behavior and economic uncertainties.