Slides
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Earnings Presentation Q2 Fiscal 2025
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2 Today’s Agenda Rebecca Gardy Chief Investor Relations Officer Welcome Mick Beekhuizen Chief Executive Officer Strategy and Business Update Carrie Anderson Chief Financial Officer Financial Results and Outlook
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3 Forward-looking Statements Safe Harbor Regarding Forward-Looking Statements This presentation contains "forward-looking" statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations regarding our future results of operations, economic performance, financial condition and achievements. These forward-looking statements can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "pursue," "strategy," "target," "will" and similar expressions. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts and may reflect anticipated cost savings or implementation of our strategic plan. These statements reflect our current plans and expectations and are based on information currently available to us. They rely on several assumptions regarding future events and estimates which could be inaccurate and which are inherently subject to risks and uncertainties. We wish to caution the reader that the following important factors and those important factors described in our other Securities and Exchange Commission filings, or in our most recent Form 10-K, could affect our actual results and could cause such results to vary materially from those expressed in any forward-looking statements made by, or on behalf of, us: the risks associated with imposed and threatened tariffs by the U.S. and reciprocal tariffs by its trading partners; the risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation, including those related to tariffs; disruptions in or inefficiencies to our supply chain and/or operations, including reliance on key contract manufacturer and supplier relationships; declines or volatility in financial markets, deteriorating economic conditions and other external factors, including the impact and application of new or changes to existing governmental laws, regulations, and policies; our ability to execute on and realize the expected benefits from our strategy, including growing sales in snacks and growing/maintaining our market share position in soup; the impact of strong competitive responses to our efforts to leverage brand power with product innovation, promotional programs and new advertising; the risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies; changes in consumer demand for our products and favorable perception of our brands; the risk that the cost savings and any other synergies from the Sovos Brands, Inc. (“Sovos Brands”) transaction may not be fully realized or may take longer or cost more to be realized than expected, including that the Sovos Brands transaction may not be accretive within the expected timeframe or the extent anticipated; our ability to realize projected cost savings and benefits from cost savings initiatives and the integration of recent acquisitions; risks related to the effectiveness of our hedging activities and our ability to respond to volatility in commodity prices; our ability to manage changes to our organizational structure and/or business processes, including selling, distribution, manufacturing and information management systems or processes; changing inventory management practices by certain of our key customers; a changing customer landscape, with value and e-commerce retailers expanding their market presence, while certain of our key customers maintain significance to our business; product quality and safety issues, including recalls and product liabilities; the possible disruption to the independent contractor distribution models used by certain of our businesses, including as a result of litigation or regulatory actions affecting their independent contractor classification; the uncertainties of litigation and regulatory actions against us; a disruption, failure or security breach of our or our vendors' information technology systems, including ransomware attacks; impairment to goodwill or other intangible assets; our ability to protect our intellectual property rights; increased liabilities and costs related to our defined benefit pension plans; our ability to attract and retain key talent; goals and initiatives related to, and the impacts of, climate change, including from weather-related events; the costs, disruption and diversion of management’s attention associated with activist investors; our indebtedness and ability to pay such indebtedness; and unforeseen business disruptions or other impacts due to political instability, civil disobedience, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics or other outbreaks of disease or other calamities. This discussion of uncertainties is by no means exhaustive but is designed to highlight important factors that may impact our outlook. We disclaim any obligation or intent to update forward-looking statements in order to reflect new information, events or circumstances after the date of this presentation. Non-GAAP Financial Measures This presentation refers to certain non-GAAP financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See the appendix to this presentation for reconciliation of each non-GAAP financial measure to its most directly comparable financial measure stated in accordance with GAAP. Industry and Market Data This presentation includes industry and market data and forecasts derived from publicly available information, various industry publications, other published industry sources and the management’s knowledge of the industry and the good faith estimates of management. This data involves a number of assumptions and limitations, and there can be no assurance these forecasts and estimates will prove accurate in whole or in part. While we believe that these sources are reliable, we have not independently verified this information. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors.
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4 Strategy and Business Update Mick Beekhuizen Chief Executive Officer
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5 Q2 earnings performance in line with expectations Weaker Snacks category growth resulted in slightly lower than anticipated top-line 10 out of 16 Leadership Brands held or grew share Reflecting the strength of our portfolio of advantaged brands Updated FY25 guidance reflecting dynamic operating environment Potential impact from tariffs or other regulatory changes not incorporated Balancing near term execution while building for the future Supporting the growth of our leadership brands while maintaining a healthy margin profile and disciplined approach to capital allocation Q2 FY25 key messages
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Key Q2 and H1 FY25 results 6 vs. PY (except Adjusted EPS) Q2 FY25 H1 FY25 Net Sales +9% +10% Organic Net Sales* (2)% (2)% Adjusted EBIT* +2% +4% Adjusted EPS* $0.74 $1.63 $ Consumption1 (1)% Flat *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 1/26/25 excluding Sovos Brands.
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Continue to strengthen our portfolio of Leadership Brands Leadership Brands represented ~90% of total Q2 FY25 Net Sales 1 Consumption data for Total Leadership Brands and Meals & Beverages Leadership Brands includes Rao’s. 2 Circana Total US MULO+, 13 weeks ending 01/26/25. 7 Snacks (1)% $ consumption Flat $ share Meals & Beverages1 +1% $ consumption Flat $ share Leadership Brands1 Flat $ consumption Flat $ share = Grew or held $ share vs. PY2
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1 Total Circana US MULO+ $ Share latest 8 weeks ending 12/29/24 compared to the 8 weeks ending 12/24/23 2 Total CPB Holiday Categories include; Campbell’s Red & White condensed cooking soups, broth / stock, Pepperidge Farm cookies and Pepperidge Farm stuffing Broth / stock - Swanson and Pacific broth / stock Demonstrated brand strength during holiday season 8 $ Consumption, $ Share Growth Key Seasonal Categories during Holiday Period1 Total CPB Holiday Categories2 Meals & Beverages Snacks Condensed Cooking Broth / Stock PF Cookies PF Stuffing Categories $ Consumption (2)% (2)% +4% (3)% (3)% Campbell’s $ Consumption Flat (1)% +2% (2)% (1)% $ Share +0.3 pts +1.1 pts (0.5) pts Flat +0.4 pts Mixed holiday season with soft category performance
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Meals & Beverages Consumption growth reflects strength of Rao's Volume growth within M&B Division amplified with Sovos Brands addition *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 1/26/25. 2 Pro forma combined basis presented to reflect results as if the Sovos Brands acquisition had occurred at the beginning of Fiscal 2024. Q2 FY25 vs. PY Reported Pro forma combined2 Organic Net Sales* (1)% Flat Volume/mix +1% +2% Dollar consumption1 Flat +1% 9 H1 FY25 vs. PY Reported Pro forma combined2 (1)% +1% +1% +3% +1% +2%
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Meals & Beverages Q2 FY25 Soup portfolio performance 1 Circana Total US MULO+, 13 weeks ending 1/26/25. 10 Q2 FY251 Wet Soup Broth Condensed RTS $ Consumption Category (0.4)% 5% (4)% (3)% Campbell’s (1)% 5% (3)% (5)% $ Share (0.5) pts Flat +1 pt (1) pt
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Meals & Beverages 11 $1B Sauces portfolio momentum continues Continued strength on Rao’s and steady Prego performance Italian Sauce Category Consumption1 +1.5% Dollars (0.8)% Volume Campbell’s Consumption1 +5% Dollars +3% Volume Share change1 +1.4pts Dollars +1.3pts Volume $ Consumption1 +7% $ Share Brand in Italian Sauce Category1 #1 $ Consumption1 +3% $ Share Brand in Italian Sauce Category1 #2 1 Circana Total US MULO+, 13 weeks ending 1/26/25. All figures reflect vs. prior year
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Meals & Beverages Rao’s sauce has ample runway for sustained growth Continued product innovation +10 New Sauce SKUs Launched in L52wks Building brand awareness 12
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Snacks Q2 FY25 vs. PY H1 FY25 vs. PY Organic Net Sales* (3)% (3)% Volume/mix (2)% (2)% Dollar consumption1 (1)% (1)% 13 Category softness reflected Q2 performance Organic Net Sales impacted by ~ 1.5pt headwind from Partner/Contract brands and competitive pressure in select categories *See Non-GAAP reconciliation. 1 Circana Total US MULO+, 13 weeks ending 1/26/25; Total Snacks.
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Snacks Strong action plans to navigate dynamic snacking categories Elevated innovation against consumer macro trends, including Better for You choices (e.g., Kettle Brand Avocado Oil) and Enhanced Value (multipack expansion, single-serve portions, PPA) Execution excellence recent launches off to strong start, including Snack Factory Pop'ums, Goldfish Sweet Grahams/LTO, Milano White Chocolate Consumer activation to dial up strong position core portfolio (in particular BFY Salty, Goldfish) Shares mixed in Q2; pressure focused in Salty/Crackers 1 Circana Total US MULO+, 13 weeks ending 1/26/25 Cookies includes – Pepperidge Farm Cookies; Fresh Bakery includes – Pepperidge Farm Fresh Bakery; Deli includes – Snack Factory pretzel crisps; Salty includes – Kettle Brand and Cape Cod potato chips, Late July snacks, Snack Factory pretzel crisps, and Snyder’s of Hanover pretzels; Crackers includes – Goldfish crackers and Lance sandwich crackers 14 Fresh Bakery CrackersDeli SaltyCookies Held1
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Snacks Snacks innovation: Expanding consumer reach through new flavors, formats and price points Better for YouEnhanced Value Innovative Flavor & Forms 15
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Core Focus Areas 3 1 2 Support growth of our Leadership Brands through highly relevant, compelling marketing and innovation Continue to improve efficiency and effectiveness across the organization to support top-line growth and healthy margin profile Maintain disciplined capital allocation strategy 16
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Financial Results and Outlook Carrie Anderson Chief Financial Officer 17
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Adjusted EBIT* Adjusted EPS*Net Sales $ Millions, except per share *See Non-GAAP reconciliation Earnings in-line with our expectations, top-line slightly behind Sovos Brands slightly accretive to adjusted EPS 18 Organic Net Sales* vs. PY (1)% (2)% Adjusted EBIT Margin* 14.8% 13.9% $2,456 $2,685 Q2 FY24 Q2 FY25 $364 $372 Q2 FY24 Q2 FY25 $0.80 $0.74 Q2 FY24 Q2 FY25 +9% vs. PY +2% vs. PY (8)% vs. PY Q2 FY25 Key Financial Results
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Sovos Brands led Net Sales growth; organic results reflect slower category recovery Organic Net Sales decreased with lower net price realization and flat volume/mix Q2 FY25 Net Sales Bridge 19 Acquisition: Sovos Brands Divestiture: Pop Secret +13 pts (1) pt 1 0 pts Volume/mix (2) pts Net Price Realization Q2 FY25 Organic Net Sales* 0 pts Currency 11 pts Q2 FY25 Net SalesAcquisition / Divestiture $2,456 $2,380 $2,685 Q2 FY24 Net Sales +9% vs. PY (2)% vs. PY $ Millions Numbers may not add due to rounding *See Non-GAAP reconciliation 1 Represents the incremental Net Sales associated with the acquisition of Sovos Brands, which was completed on March 12, 2024, and the loss of Net Sales associated with the divestiture of the Pop Secret popcorn business, which was completed on August 26, 2024.
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*See Non-GAAP reconciliation 1 Volume/mix includes the impact of operating leverage 2 Impact from the acquisition of Sovos Brands which was completed on March 12, 2024. Adj. gross profit margin decrease reflects lower base business margin and the impact of the acquisition Productivity improvements and cost savings partially offset net price, inflation and other supply chain costs in base business Q2 FY25 Adjusted Gross Profit Margin* Bridge 20 30.8% Q2 FY25 30.4% 31.4% Cost Savings Initiatives + 50 bps Productivity Improvements + 110 bps Inflation / Other (130) bps Net Price Realization (110) bps Q2 FY24 Volume/mix + 20 bps Acquisition (40) bps Base Business Gross Margin (100) bps vs. PY (60) bps vs. PY 1 2
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A&C +25% vs. PY1 Adjusted Administrative Expenses*Adjusted Marketing & Selling Expenses* Q2 FY25 Other Operating Items Other operating items as % of Net Sales remained consistent to PY *See Non-GAAP reconciliation 1 Q2 FY25 figures include Sovos Brands adjusted marketing & selling expenses and adjusted administrative expenses after the completion of the acquisition on March 12, 2024 21 % of Net Sales: 8% $216 Q2 FY24 Q2 FY25 $255 1 9%9% +18% vs. PY $159 Q2 FY24 Q2 FY25 $156 1 6%6% (2)% vs. PY % of Net Sales: $ Millions
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Numbers may not add due to rounding *See Non-GAAP reconciliation Adj. EBIT +2% driven by acquisition contribution Lower adj. EBIT margin primarily reflects lower adj. gross margin and higher brand investments Q2 FY25 Adjusted EBIT* Bridge Adjusted EBIT Margin* 14.8% (100) bps +80 bps 13.9% $364 $372 $43 $3 $1 Q2 FY24 Adjusted Gross Profit Impact* ($39) Adjusted Marketing & Selling Expenses* Adjusted Administrative & R&D Expenses* Adjusted Other Expenses / (Income)* Q2 FY25 +2% vs. PY $ Millions (70) bps +10 bps 22
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Numbers may not add due to rounding *See Non-GAAP reconciliation. Adj. EPS moved lower with EBIT growth more than offset by higher interest expense The impact of the Sovos Brands acquisition was slightly accretive to adj. EPS Q2 FY25 Adjusted EPS* Bridge 23 $0.80 $0.74 $0.02 Q2 FY24 Adjusted EBIT* ($0.09) Interest $0 Adjusted Taxes* $0 Share Impact Q2 FY25 (8)% vs. PY
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Q2 FY25 Meals & Beverages results *See Non-GAAP reconciliation 24 Net Sales Vol/Mix (2)% 1% (4)% 1% Net Price Realization 0% (2)% 1% (2)% Organic Net Sales* vs. PY (2)% (1)% (3)% (1)% Operating Margin 17.9% 17.3% 19.2% 18.6% Operating Earnings $ Millions $1,382 $1,679 $2,786 $3,385 Q2 FY24 Q2 FY25 YTD Q2 FY24 YTD Q2 FY25 $247 $291 $534 $628 Q2 FY24 Q2 FY25 YTD Q2 FY24 YTD Q2 FY25 +21% vs. PY +22% vs. PY +18% vs. PY +18% vs. PY
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Q2 FY25 Snacks results *See Non-GAAP reconciliation $ Millions 25 Vol/Mix (2)% (2)% (3)% (2)% Net Price Realization 3% (1)% 4% (1)% Organic Net Sales* vs. PY 1% (3)% 1% (3)% Operating Margin 15.0% 11.3% 14.7% 12.4% $1,074 $1,006 $2,188 $2,072 Q2 FY24 Q2 FY25 YTD Q2 FY24 YTD Q2 FY25 $161 $114 $322 $256 Q2 FY24 Q2 FY25 YTD Q2 FY24 YTD Q2 FY25 (6)% vs. PY (5)% vs. PY (29)% vs. PY (20)% vs. PY Net Sales Operating Earnings
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Strong operating cash flow and a disciplined focus on shareholder value creation Returned $283M to shareholders in FY25 year-to-date. Dividend to increase by 5% to $0.39 per share beginning with Q3 FY25 payout Capital Allocation 26 Net Cash Flows from Operations Q2 YTD FY24 Q2 YTD FY25 Invest for Growth Capital Expenditures $263 $211 Return Cash to Shareholders Dividends $224 $227 Share Repurchases $29 $56 $253 $283 Balance Sheet Leverage Ratio* 2.6X 3.7x Capital Allocation $684 $737 Q2 YTD FY24 Q2 YTD FY25 $ Millions *Calculated as Net Debt to TTM Adjusted EBITDA. See Non-GAAP reconciliation.
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FY24 Results Prior FY25 Guidance Updated FY25 Guidance Net Sales $9,636 +9% to +11% +6% to +8% Organic Net Sales $9,457* 0% to +2% (2)% to 0% Adjusted EBIT $1,454* +9% to +11% +3 to +5% Adjusted EPS $3.08* +1% to +4% $3.12 to $3.22 (4)% to (1)% $2.95 to $3.05 • Guidance updated for divestiture of noosa on Feb. 24, 2025, with a ~(1)pt. and ($0.01) impact on FY25 Net Sales growth and adj. EPS, respectively • Prior/current guidance reflects Pop Secret divestiture in Aug. 2024 with a ~(1)% and ($0.04) impact on FY25 Net Sales growth and adj. EPS, respectively • Low-single digit core inflation mitigated by ~3% productivity improvements and ~$120 million of enterprise cost savings • Marketing & Selling at the lower end of our targeted ~9% to 10% of Net Sales • Net interest expense of $325 to $330 million, updated to reflect the benefit of the after-tax proceeds from the noosa divestiture used to reduce debt • Adjusted effective tax rate of ~24% • Diluted share count of ~300 million shares • Capital expenditures for the full year at ~4.7% of Net Sales FY25 Updated Guidance Outlook Prior guidance reflects Sovos Brands which was acquired on March 12, 2024, the divestiture of the Pop Secret popcorn business which was sold on August 26, 2024 and the impact of the 53rd week in fiscal 2025. Updated guidance also reflects the divestiture of the noosa yoghurt business which was sold on February 24, 2025. Organic Net Sales exclude acquisitions, divestitures, currency and the 53rd week in fiscal 2025. *See non-GAAP reconciliation Note: A non-GAAP reconciliation is not provided for fiscal 2025 guidance as the company is unable to reasonably estimate the full-year financial impact of items such as actuarial gains or losses on pension and postretirement plans because these impacts are dependent on future changes in market conditions. The inability to predict the amount and timing of these future items makes a detailed reconciliation of these forward-looking financial measures impracticable. 27 FY25 Assumptions $ Millions, Except Per Share
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Q2 FY25 and looking ahead 28 Q2 organic results mixed with overall stable market shares on weaker category growth Strong performance by Rao’s expected to continue; Acquisition expected to be accretive to full-year adj. EPS FY25 Guidance lowered to reflect slower than anticipated recovery of snacking categories Updated outlook maintains the ability to continue to invest behind our brands and remain competitive Wrap Up
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29 Q&A Mick Beekhuizen President & Chief Executive Officer Carrie Anderson EVP & Chief Financial Officer
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Appendix
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Second Quarter Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of January 26, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,679 $ 6 $ (313) $ 1,372 21% (1%) 0% 23% Snacks 1,006 2 - 1,008 (6%) (3%) (3%) 0% Total Net Sales $ 2,685 $ 8 $ (313) $ 2,380 9% (2%) (1%) 13% Net Sales, Impact of Organic January 28, 2024 As Reported Divestiture Net Sales Meals & Beverages $ 1,382 $ - $ 1,382 Snacks 1,074 (32) 1,042 Total Net Sales $ 2,456 $ (32) $ 2,424 % Change ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 31
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 32 First Half Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of January 26, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 3,385 $ 7 $ (623) $ 2,769 22% (1%) 0% 22% Snacks 2,072 2 - 2,074 (5%) (3%) (2%) 0% Total Net Sales $ 5,457 $ 9 $ (623) $ 4,843 10% (2%) (1%) 13% Net Sales, Impact of Organic January 28, 2024 As Reported Divestiture Net Sales Meals & Beverages $ 2,786 $ - $ 2,786 Snacks 2,188 (53) 2,135 Total Net Sales $ 4,974 $ (53) $ 4,921 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 33 First Quarter Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of October 27, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,706 $ 1 $ (310) $ 1,397 22% 0% 0% 22% Snacks 1,066 - - 1,066 (4%) (2%) (2%) 0% Total Net Sales $ 2,772 $ 1 $ (310) $ 2,463 10% (1%) (1%) 12% Net Sales, Impact of Organic October 29,2023 As Reported Divestiture Net Sales Meals & Beverages $ 1,404 $ - $ 1,404 Snacks 1,114 (21) 1,093 Total Net Sales $ 2,518 $ (21) $ 2,497 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 34 Second Quarter Net Sales, Impact of Organic Net Sales, Organic January 28, 2024 As Reported Currency Net Sales As Reported Net Sales Meals & Beverages $ 1,382 $ - $ 1,382 (2%) (2%) Snacks 1,074 - 1,074 0% 1% Total Net Sales $ 2,456 $ - $ 2,456 (1%) (1%) Net Sales, Impact of Organic January 29, 2023 As Reported Divestiture Net Sales Meals & Beverages $ 1,408 $ - $ 1,408 Snacks 1,077 (13) 1,064 Total Net Sales $ 2,485 $ (13) $ 2,472 % Change
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First Half Net Sales, Impact of Organic Net Sales, Organic January 28, 2024 As Reported Currency Net Sales As Reported Net Sales Meals & Beverages $ 2,786 $ 3 $ 2,789 (3%) (3%) Snacks 2,188 (1) 2,187 0% 1% Total Net Sales $ 4,974 $ 2 $ 4,976 (2%) (1%) Net Sales, Impact of Organic January 29, 2023 As Reported Divestiture Net Sales Meals & Beverages $ 2,863 $ - $ 2,863 Snacks 2,197 (30) 2,167 Total Net Sales $ 5,060 $ (30) $ 5,030 % Change ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 35
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 36 Three Months Ended Three Months Ended January 26, 2025 January 28, 2024 $ 173 $ 203 74 68 80 46 $ 327 $ 317 Interest, net Earnings before interest and taxes, as reported Net Earnings, as reported Taxes
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 37 Second Quarter EBIT EBIT Margin % Earnings Diluted EPS 2025 – As Reported $ 327 12.2% $ 173 $ 0.58 Costs associated with cost savings and optimization initiatives 25 19 0.06 Commodity mark-to-market gains (14) (10) (0.03) Accelerated amortization 7 5 0.02 Impairment charges 26 19 0.06 Charges associated with divestitures - 15 0.05 Certain litigation expenses 1 1 - 2025 – Adjusted $ 372 13.9% $ 222 $ 0.74 2024 – As Reported $ 317 12.9% $ 203 $ 0.68 Costs associated with cost savings and optimization initiatives 36 27 0.09 Commodity mark-to-market gains (7) (5) (0.02) Accelerated amortization 7 5 0.02 Costs associated with acquisition 10 9 0.03 Certain litigation expenses 1 1 - 2024 – Adjusted $ 364 14.8% $ 240 $ 0.80 $ Change - Adjusted $ 8 $ (18) $ (0.06) % Change - Adjusted 2% (90) bps (8%) (8%)
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First Half EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 694 12.7% $ 391 $ 1.30 Costs associated with cost savings and optimization initiatives 60 46 0.15 Commodity mark-to-market gains (18) (13) (0.04) Accelerated amortization 14 10 0.03 Impairment charges 26 19 0.06 Charges associated with divestitures 25 34 0.11 Certain litigation expenses 2 2 0.01 Postretirement actuarial losses 2 1 - Cybersecurity incident recoveries (1) (1) - 2025 – Adjusted $ 804 14.7% $ 489 $ 1.63 2024 – As Reported $ 675 13.6% $ 437 $ 1.46 Costs associated with cost savings and optimization initiatives 49 37 0.12 Commodity mark-to-market losses 8 6 0.02 Accelerated amortization 14 10 0.03 Costs associated with acquisition 19 17 0.06 Certain litigation expenses 3 3 0.01 Cybersecurity incident costs 3 2 0.01 2024 – Adjusted $ 771 15.5% $ 512 $ 1.71 $ Change - Adjusted $ 33 $ (23) $ (0.08) % Change - Adjusted 4% (80) bps (4%) (5%) ($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 38*The sum of the individual per share amounts may not add due to rounding
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 39 Second Quarter Gross Profit GP % EBT Tax Tax Rate 2025 – As Reported $ 819 30.5% $ 247 $ 74 30.0% Costs associated with cost savings and optimization initiatives 10 25 6 Commodity mark-to-market gains (14) (14) (4) Accelerated amortization - 7 2 Charges associated with divestitures - - (15) Impairment charges - 26 7 Certain litigation expenses - 1 - 2025 – Adjusted $ 815 30.4% $ 292 $ 70 24.0% 2024 – As Reported $ 776 31.6% 271 68 25.1% Costs associated with cost savings and optimization initiatives 3 36 9 Commodity mark-to-market gains (7) (7) (2) Accelerated amortization - 7 2 Costs associated with acquisition - 10 1 Certain litigation expenses - 1 - 2024 – Adjusted $ 772 31.4% $ 318 $ 78 24.5% $ Change – Adjusted $ 43 $ (26) $ (8) % Change – Adjusted 6% (100) bps (8%) (10%) (50) bps
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 40 Second Quarter Marketing & Selling Expenses Other Expenses / (Income) 2025 – As Reported $ 256 $ 41 Costs associated with cost savings and optimization initiatives (1) - Impairment charges - (26) Accelerated amortization - (7) 2025 – Adjusted $ 255 $ 8 % of Net Sales – Adjusted 9.5% 0.3% 2024 – As Reported $ 217 $ 26 Costs associated with cost savings and optimization initiatives (1) - Accelerated amortization - (7) Costs associated with acquisition - (10) 2024 – Adjusted $ 216 $ 9 % of Net Sales – Adjusted 8.8% 0.4% % of Net Sales Change – Adjusted +70 bps (10) bps $ Change – Adjusted $ 39 $ (1) % Change - Adjusted 18% n/m
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 41 Second Quarter Administrative R&D Expenses Expenses Total 2025 – As Reported $ 165 $ 25 $ 190 Costs associated with cost savings and optimization initiatives (8) (1) (9) Certain litigation expenses (1) - (1) 2025 – Adjusted $ 156 $ 24 $ 180 % of Net Sales – Adjusted 5.8% 0.9% 6.7% 2024 – As Reported $ 189 $ 25 $ 214 Costs associated with cost savings and optimization initiatives (29) (1) (30) Certain litigation expenses (1) - (1) 2024 – Adjusted $ 159 $ 24 $ 183 % of Net Sales – Adjusted 6.5% 1.0% 7.5% % of Net Sales Change - Adjusted (70) bps (10) bps (80) bps $ Change – Adjusted $ (3) $ - $ (3) % Change - Adjusted (2%) 0% (2%)
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 42 Second Quarter – Adjusted Diluted EPS Impact from Adjusted EBIT 2025 – Adjusted 2024 – Adjusted $ Change Deduct: 2024 Adjusted tax rate impact on EBIT Impact to Net Earnings Second Quarter 2024 Diluted Shares Adjusted Diluted EPS Impact $ (2) $ 6 299 $ 0.02 EBIT $ 372 364 $ 8
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 43 Adjusted Diluted EPS Impact from Change in Adjusted Tax Rate 2025 – Adjusted EBT $ 292 Decrease (Increase) in Adjusted Tax Rate 0.5% Adjusted EBT multiplied by the Change in Adjusted Tax Rate $ 1 Second Quarter 2024 Diluted Shares 299 Adjusted Diluted EPS Impact $ 0.00 Second Quarter
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures *The Pop Secret popcorn business was sold on August 26, 2024 and the noosa yoghurt business was divested on February 24,2025 44 Q3 Fiscal 2024 Organic Sales Base for Q3 Fiscal 2025 Guidance Third Quarter Meals & Beverages $ 1,272 $ (21) $ 1,251 Snacks 1,097 (30) 1,067 Total Net Sales $ 2,369 $ (51) $ 2,318 April 28, 2024 Net Sales, As Reported Impact of Divestitures* Organic Net Sales Base for Q3 FY2025 Guidance
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Q4 Fiscal 2024 Organic Sales Base for Q4 Fiscal 2025 Guidance Fourth Quarter Meals & Beverages $ 1,200 $ (47) $ 1,153 Snacks 1,093 (28) 1,065 Total Net Sales $ 2,293 $ (75) $ 2,218 July 28, 2024 Net Sales, As Reported Impact of Divestitures* Organic Net Sales Base for Q4 FY2025 Guidance ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures *The Pop Secret popcorn business was sold on August 26, 2024 and the noosa yoghurt business was divested on February 24,2025 45
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Fiscal 2024 Organic Sales Base for Fiscal 2025 Guidance Full Year Meals & Beverages $ 5,258 $ (68) $ 5,190 Snacks 4,378 (111) 4,267 Total Net Sales $ 9,636 $ (179) $ 9,457 July 28, 2024 Net Sales, As Reported Organic Net Sales Base for FY2025 Guidance Impact of Divestitures* ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures *The Pop Secret popcorn business was sold on August 26, 2024 and the noosa yoghurt business was sold on February 24,2025 46
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Full Year EBIT Earnings Diluted EPS* 2024 – As Reported $ 1,000 $ 567 $ 1.89 Costs associated with cost savings and optimization initiatives 109 83 0.28 Pension and postretirement actuarial losses 33 25 0.08 Commodity mark-to-market losses 22 16 0.05 Accelerated amortization 27 20 0.07 Costs associated with acquisition 126 109 0.36 Cybersecurity incident costs 3 2 0.01 Impairment charges 129 98 0.33 Certain litigation expenses 5 5 0.02 2024 – Adjusted $ 1,454 $ 925 $ 3.08 ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 47*The sum of the individual per share amounts may not add due to rounding
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 48 Net Debt January 28, 2024 October 27, 2024 January 26, 2025 Short-Term Borrowings $ 14 $ 1,212 $ 1,179 Long-Term Debt 4,506 6,705 6,496 Total Debt $ 4,520 $ 7,917 $ 7,675 Less: Cash and Cash Equivalents (169) (808) (829) Net Debt $ 4,351 $ 7,109 $ 6,846
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 49 (a) (b) (c) = (a)-(b)+(c) Twelve Months Ended Six Months Ended Six Months Ended Trailing Twelve Months Ended (TTM) July 30, 2023 January 29, 2023 January 28, 2024 January 28, 2024 Net Earnings, as reported $ 858 $ 529 $ 437 $ 766 Taxes 270 166 144 248 Interest, net 184 91 94 187 Earnings before interest and taxes, as reported $ 1,312 $ 786 $ 675 $ 1,201 Costs associated with cost savings and optimization initiatives 66 17 49 98 Pension and postretirement actuarial losses (gains) (15) 9 - (24) Commodity mark-to-market losses (gains) (21) - 8 (13) Charges associated with divestiture 13 - - 13 Accelerated amortization 7 - 14 21 Costs associated with acquisition 5 - 19 24 Cybersecurity incidents costs - - 3 3 Certain litigation expenses - - 3 3 Adjusted Earnings before interest and taxes $ 1,367 $ 812 $ 771 $ 1,326 Depreciation and amortization, as reported $ 387 $ 176 $ 192 $ 403 Costs associated with cost savings and optimization initiatives (24) - (10) (34) Accelerated amortization (7) - (14) (21) Adjusted Depreciation and amortization $ 356 $ 176 $ 168 $ 348 Adjusted Earnings before interest, taxes, depreciation and amortization $ 1,723 $ 988 $ 939 $ 1,674 Net Debt $ 4,351 Net Debt to Adjusted EBITDA 2.6
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 50 (a) (b) (c) (d) = (a)-(b)+(c)+(d) Twelve Months Ended Three Months Ended Three Months Ended Sovos November Trailing Twelve Months Ended (TTM) July 28, 2024 October 29, 2023 October 27, 2024 2023 – March 11, 2024 October 27, 2024 $ 567 $ 234 $ 218 $ 18 $ 569 190 76 66 8 188 243 48 83 12 290 $ 1,000 $ 358 $ 367 $ 38 $ 1,047 109 13 35 - 131 33 - 2 - 35 22 15 (4) - 3 27 7 7 - 27 126 9 - 7 124 - - 25 - 25 3 3 (1) - (1) 129 - - - 129 5 2 1 - 4 $ 1,454 $ 407 $ 432 $ 45 $ 1,524 $ 411 $ 96 $ 109 $ 13 $ 437 (28) (5) (9) - (32) (27) (7) (7) - (27) $ 356 $ 84 $ 93 $ 13 $ 378 $ 1,810 $ 491 $ 525 $ 58 $ 1,902 $ 7,109 3.7Net Debt to Adjusted EBITDA Adjusted Depreciation and amortization Adjusted Earnings before interest, taxes, depreciation and amortization Net Debt Adjusted Earnings before interest and taxes Depreciation and amortization, as reported Costs associated with cost savings and optimization initiatives Accelerated amortization Accelerated amortization Costs associated with acquisition Charges associated with divestiture Cybersecurity incidents costs (recoveries) Impairment charges Certain litigation expenses Interest, net Earnings before interest and taxes, as reported Costs associated with cost savings and optimization initiatives Pension and postretirement actuarial losses Commodity mark-to-market losses (gains) Net Earnings, as reported Taxes
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(a) (b) (c) (d) = (a)-(b)+(c)+(d) Twelve Months Ended Six Months Ended Six Months Ended Sovos February Trailing Twelve Months Ended (TTM) July 28, 2024 January 28, 2024 January 26, 2025 2024 – March 11, 2024 January 26, 2025 $ 567 $ 437 $ 391 $ (2) $ 519 190 144 140 - 186 243 94 163 4 316 $ 1,000 $ 675 $ 694 $ 2 $ 1,021 109 49 60 - 120 33 - 2 - 35 22 8 (18) - (4) 27 14 14 - 27 126 19 - 5 112 - - 25 - 25 3 3 (1) - (1) 129 - 26 - 155 5 3 2 - 4 $ 1,454 $ 771 $ 804 $ 7 $ 1,494 $ 411 $ 192 $ 219 $ 5 $ 443 (28) (10) (17) - (35) (27) (14) (14) - (27) $ 356 $ 168 $ 188 $ 5 $ 381 $ 1,810 $ 939 $ 992 $ 12 $ 1,875 $ 6,846 3.7 Net Debt Net Debt to Adjusted EBITDA Adjusted Depreciation and amortization Adjusted Earnings before interest, taxes, depreciation and amortization Adjusted Earnings before interest and taxes Depreciation and amortization, as reported Costs associated with cost savings and optimization initiatives Accelerated amortization Earnings before interest and taxes, as reported Costs associated with cost savings and optimization initiatives Pension and postretirement actuarial losses Commodity mark-to-market losses gains Accelerated amortization Costs associated with acquisition Charges associated with divestitures Cybersecurity incidents costs (recoveries) Impairment charges Certain litigation expenses Net Earnings, as reported Taxes Interest, net ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 51
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 52 Second Quarter Net Sales Meals & Beverages Net Sales 2025 $ 1,679 Add: Impact of Currency 6 Meals & Beverages $ 1,685 Meals & Beverages Net Sales 2024 $ 1,382 Add: Sovos Brands, Inc. October 30, 2023 – January 28, 2024 304 Pro Forma Combined $ 1,686 % Change 0% First Half Net Sales Meals & Beverages Net Sales 2025 $ 3,385 Add: Impact of Currency 7 Meals & Beverages $ 3,392 Meals & Beverages Net Sales 2024 $ 2,786 Add: Sovos Brands, Inc. July 31, 2023 – January 28, 2024 577 Pro Forma Combined $ 3,363 % Change 1%