Campbell Soup : Q3 Fiscal 2024 Campbell Soup Company Earnings Factsheet

Q3 Fiscal 2024 Results

NYSE: CPB

• Sequential volume / mix improvement with stable organic net sales*. Double-digitgrowth in Adjusted Earnings Before Interest and Taxes* (EBIT) and Adjusted Earnings Per Share* (EPS).
• Sovos Brands, Inc. (Sovos Brands) performance ahead of expectations leading to neutral impact on Adjusted EPS in the quarter.
• In-marketperformance stable for Meals & Beverages with some pressure in Snacks reflecting the pace of consumer recovery.
• Remain on track for Snacks FY24 operating margin target.
• Full-yearFY24 guidance updated to reflect the expected performance of the base business and the impact of the recent acquisition.

Key Metrics

Three months ended 04/28/2024

		Net Sales		Adj. EBIT*	Adj. EPS*	$ Consumption1
$2.4 Billion	$354 Million	$0.75	(2)%
				i	N					vs. PY
				et
			n	c		S
		a
	g					a
						l
r							e
O								s
								*
				Flat			+13%	+10%	+6%
				vs. PY			vs. PY	vs. PY	vs. 2YA

"We are excited about the integration of the Sovos Brands business, which already is bringing significant incremental growth to our company as we continue to navigate the pace of consumer recovery."

Mark Clouse

President & CEO

Meals & Beverages

• Organic Net Sales* Flat vs. PY; (1)% on a two-year CAGR* basis
• $ Consumption1 (2)% vs. PY; Flat on a two-year CAGR basis
• Topline stabilization with sequential volume / mix improvement
• Condensed Cooking and Broth continue to benefit from consumers seeking stretchable foods
• Well-positionedItalian sauce portfolio with share strength in the quarter

Snacks

• Organic Net Sales* (1)% vs. PY; +6% on a two-year CAGR* basis
• $ Consumption1 (2) vs. PY; +6% on a two-year CAGR basis
• 8 Power Brands: Net Sales +2% vs. PY;
  +9% on a two-year CAGR basis
• Late July innovation fuels quarterly performance with net sales +26% vs. PY
• +190 bps operating margin growth

(Q3 FY24 YTD vs. Q3 FY22 YTD)

*See Non-GAAP reconciliation. 1 Total Circana US MULO $ Consumption latest 13 weeks ending 04/28/2024. Total Company and Meals & Beverages exclude Sovos Brands.

Campbell Soup Company | NYSE: CPB

Campbell updates its full-year fiscal 2024

Full-Year Fiscal 2024 Guidance

guidance for Net Sales, Adjusted EBIT and

Adjusted EPS.

Updates include Sovos Brands

*See non-GAAP reconciliation

FY2023

Previous FY2024

Updated FY2024

1 A non-GAAP reconciliation is not provided for fiscal 2024 guidance as

Results

Guidance

1

Guidance Including

impact of items such as actuarial gains or losses on pension and

Sovos Brands1

the company is unable to reasonably estimate the full-year financial

postretirement plans because these impacts are dependent on future

($ millions, except per share amounts)

changes in market conditions. The inability to predict the amount and

timing of these future items makes a detailed reconciliation of these

Net Sales

$9,357

(0.5)% to +1.5%

+3% to +4%

forward-looking financial measures impracticable.

Organic Net Sales2

$9,306*

0% to +2%

(1)% to 0%

2 Growth rate adjusted for the Emerald nuts business, which was

divested on May 30, 2023 and Sovos Brands, which was acquired on

Adjusted EBIT3

$1,367*

+3% to +5%

+6.5% to +7%

March 12, 2024.

Adjusted EPS3

$3.00*

+3% to +5%

+2% to +3%

3 Adjusted EBIT in fiscal 2023 included approximately $14 million and

$3.09 to $3.15

$3.07 to $3.10

adjusted EPS included approximately $0.04 of litigation expenses

related to the Plum baby food and snacks business, which was

divested on May 3, 2021. We are excluding these expenses from our

Reconciliation of GAAP and Non-GAAP Financial Measures

fiscal 2024 adjusted EBIT and adjusted EPS and thereafter as we

do not believe that these expenses reflect our underlying operating

($ millions)

performance.

% Change

Third Quarter

April 28, 2024

Net Sales,

Impact of

Impact of

Organic

Net Sales,

Organic

As Reported

Currency

Acquisition

Net Sales

As Reported

Net Sales

Meals & Beverages

$1,272

$-

$(166)

$1,106

15%

0%

Snacks

1,097

(1)

-

1,096

(2)%

(1)%

Total Net Sales

$2,369

$(1)

$(166)

$2,202

6%

0%

April 30, 2023

Net Sales,

Impact of

Organic

As Reported

Divestiture

Net Sales

Meals & Beverages

$1,108

$-

$1,108

Snacks

1,121

(16)

1,105

Total Net Sales

$2,229

$(16)

$2,213

($ millions)

Third Quarter

April 28, 2024		Net Sales,	Impact of	Impact of		Organic
As Reported		Currency	Acquisition	Net Sales
Meals & Beverages	$1,272		$8		$(166)		$1,114
Snacks	1,097		(1)		-		1,096
Total Net Sales
$2,369		$7		$(166)		$2,210

May 1, 2022		Net Sales,		Impact of		Organic
As Reported	Divestiture	Net Sales
Meals & Beverages	$1,131		$-		$1,131
Snacks	999		(17)		982
Total Net Sales	$2,130		$(17)		$2,113
($ millions, except per share amounts)
Third Quarter
								EBIT
2024 - As Reported							$248
Add: Costs associated with cost savings and optimization initiatives​	20
Deduct: Commodity mark-to-market adjustments				(13)
Add: Accelerated amortization				6
Add: Costs associated with acquisition				93
2024 - Adjusted							$354
2023 - As Reported							$254
Add: Costs associated with cost savings and optimization initiatives	33
Add: Pension actuarial losses				17
Add: Commodity mark-to-market adjustments				9
2023 - Adjusted							$313
% Change - Adjusted							13%

Two-Year CAGR

Net Sales,	Organic
As Reported	Net Sales
6%		(1)%
5%		6%
5%		2%

Earnings	Diluted EPS**
$133	$0.44
15	0.05

1. (0.03)

5	0.02
81	0.27
$224		$0.75
$160	$0.53
24	0.08
13	0.04

70.02

$204$0.68

10%10%

($ millions)

Full Year

July 30, 2023	Net Sales,	Impact of	Organic Net Sales Base for
As Reported	Divestiture		FY2024 Guidance
Meals & Beverages	$4,907		$-	$4,907
Snacks	4,450		(51)	4,399
Total Net Sales	$9,357		$(51)	$9,306

($ millions, except per share amounts)

Full Year

		EBIT		Earnings		Diluted EPS
2023	- As Reported	$1,312	$858	$2.85
	Add: Costs associated with cost savings and optimization initiatives	66	50	0.17
	Deduct: Pension and postretirement actuarial gains	(15)	(11)	(0.04)
	Deduct: Commodity mark-to-market adjustments	(21)	(16)	(0.05)
	Add: Charges associated with divestiture	13	13	0.04
	Add: Accelerated amortization	7	5	0.02
	Add: Costs associated with acquisition	5		4		0.01
2023	- Adjusted	$1,367	$903	$3.00

**The sum of the individual per share amounts may not add due to rounding.

The document contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements reflect the Company's current expectations of the Company's future business or financial results. These forward-looking statements, including any statements made regarding sales, EBIT and EPS guidance, rely on a number of assumptions and estimates that could be inaccurate and which are subject to risks and uncertainties. For important information on forward-looking statements, please see our press release on our investor website at https://investor.campbellsoupcompany.com.