Slides
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Earnings Presentation Q3 Fiscal 2025
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2 Today’s Agenda Rebecca Gardy Chief Investor Relations Officer Welcome Mick Beekhuizen Chief Executive Officer 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 a 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 Business Update Mick Beekhuizen Chief Executive Officer
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5 Q3 earnings performance exceeded expectations M&B strength outweighed continued challenges in Snacks Stable share and consumption in Leadership Brands Driven by Meals & Beverages brand strength as at home cooking rises FY25 guidance reaffirmed, with adjusted EPS expected to be at low end of range Tariff impact expected to be incremental headwind of $0.03 to $0.05 in FY25 Continuing to evolve to drive long-term value creation Leveraging scale for growth amid dynamic operating environment to strengthen competitiveness across our brand portfolio Q3 FY25 key messages
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Key Q3 and YTD FY25 results 6 vs. PY Q3 FY25 YTD FY25 Organic Net Sales* +1% (1)% Net Sales +4% +8% Adjusted EBIT* +2% +4% Adjusted EPS* (3)% (4)% $ Consumption 1 (1)% Flat *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 04/27/25 including Sovos Brands.
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M&B Leadership Brands continued to outpace categories Leadership Brands represented ~90% of total Q3 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 04/27/25. 7 Snacks (3)% $ consumption (0.2) $ share Meals & Beverages1 +2% $ consumption +0.4 $ share Leadership Brands1 Flat $ consumption Flat $ share = Grew or held $ share vs. PY2
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Meals & Beverages Leadership Brands drive consumption growth Organic Net Sales benefitted by strength in unmeasured channels and shipment timing *See Non-GAAP reconciliation 1 Circana Total US MULO+, 13 weeks ending 4/27/25. 2 Pro forma combined basis presented to reflect results as if the Sovos Brands acquisition had occurred at the beginning of Fiscal 2024. Q3 FY25 vs. PY Reported Organic Net Sales* +6% Volume/mix +7% Dollar consumption1 +2% 8 YTD FY25 vs. PY Reported Pro forma combined2 +1% +2% +3% +4% +2% +2%
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Meals & Beverages Q3 FY25 Soup portfolio performance Increased at-home cooking driving strength in broth and condensed soup 1 Circana Total US MULO+, 13 weeks ending 4/27/25. 9 Q3 FY251 Wet Soup Broth Condensed RTS $ Consumption Category 3% 7% 1% 1% Campbell’s 4% 15% 2% (2)% $ Share +0.4pts +3 pts +1 pt (1) pt
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10 Gained 1M new cooking buyers (51% millennials) Highest Q3 volume growth in 4 years Highest HHP gain in ANY quarter in 4 years Unlocking Growth in Q3 in Campbell’s Cooking Condensed Increased brand perception among millennial families
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Meals & Beverages 11 Italian sauces portfolio maintains category leadership Italian Sauce Category Consumption1 +2% Dollars +1% Volume Campbell’s Consumption1 +1% Dollars (2)% Volume Share change1 (0.4)pts Dollars (0.8)pts Volume $ Consumption 1 +2% $ Share Brand in Italian Sauce Category1 #1 $ Consumption 1 Flat $ Share Brand in Italian Sauce Category1 #2 1 Circana Total US MULO+, 13 weeks ending 4/27/25. All figures reflect vs. prior year
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Rao’s sauce has significant long-term upside Runway in both distribution and brand awareness 1 Source: Circana, Italian Sauce Only, MULO+ 52wks we 04.27.25 2 Source: Circana, Italian Sauce Only, All Outlets 52wks we 04.27.25 3 Source: Aided Awareness Mindsight Brand health Equity study Published June 2024 12 Average SKU’s1 ~65% vs. Total Points of Distribution1 ~63% vs. Household Penetration2 ~53% vs. Aided Awareness3 ~68% vs. Distribution Awareness
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Snacks Q3 FY25 vs. PY YTD FY25 vs. PY Organic Net Sales* (5)% (4)% Volume/mix (5)% (3)% Dollar consumption1 (3)% (2)% 13 Snacks facing continued competitive pressure Q3 Organic Net Sales includes headwind from partner/contract brands *See Non-GAAP reconciliation. 1 Circana Total US MULO+, 13 weeks ending 4/27/25; Total Snacks.
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Snacks Brand-specific action plans to navigate competitive snacking categories Maintain momentum in Bakery & Cookies with elevated Pepperidge Farm core plus innovation Accelerate trial build on Snack Factory Pop’ums and Bites to win in Pretzel category fueled by flavor Launch Chips flavors for summer season with strategic promotional support that drives display on full portfolio and expand distribution of Better-for-You Kettle Brand Avocado Oil platform Renew core focus on Goldfish with new marketing campaign, strategic promotion, and strong display heading into critical Back-to-School season Mixed share performance across Snacks portfolio 1 Circana Total US MULO+, 13 weeks ending 4/27/25 Fresh Bakery includes – Pepperidge Farm Fresh Bakery; Cookies includes – Pepperidge Farm Cookies; Pretzels includes – Snack Factory and Snyder’s of Hanover pretzels; Chips includes – Kettle Brand and Cape Cod potato chips, Late July tortilla chips; Crackers includes – Goldfish crackers and Lance sandwich crackers 14 Fresh Bakery CrackersPretzels ChipsCookies Held1
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Unlocking Growth in Pepperidge Farm Pepperidge Farm Milano Cookies strongest household penetration gains in 9 quarters driven by White Chocolate platform launch Pepperidge Farm Bakery highest volume and dollar growth in 9 quarters driven by Farmhouse Brioche platform
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16 Solid Q3 results with strong Meals & Beverages performance and mixed results in Snacks Near-term focus on in-market execution while actively mitigating potential tariff impacts Building a stronger foundation by improving efficiency and effectiveness across the organization to facilitate growth across our brand portfolio Wrap up
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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 ahead of our expectations driven by better topline Sovos Brands accretive to adjusted EPS 18 Organic Net Sales* vs. PY Flat 1% Adjusted EBIT Margin* 14.9% 14.6% $2,369 $2,475 Q3 FY24 Q3 FY25 $354 $362 Q3 FY24 Q3FY25 $0.75 $0.73 Q3 FY24 Q3 FY25 +4% vs. PY +2% vs. PY (3)% vs. PY Q3 FY25 Key Financial Results
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Sovos acquisition moved into organic mid-Q3 Volume-led Organic Net Sales growth with some timing benefit in Meals & Beverages Q3 FY25 Net Sales Bridge 19 Acquisition: Sovos Brands Divestitures: Pop Secret / noosa +6 pts (2) pts 1 $2,369 $2,475 Q3 FY24 Net Sales 2 pts Volume / Mix (1) pt Net Price Realization Q3 FY25 Organic Net Sales* 0 pts Currency 4 pts Acquisition / Divestitures Q3 FY25 Net Sales +4% vs. PY +1% vs. PY $ Millions Numbers may not add due to rounding *See Non-GAAP reconciliation 1 Represents the loss of Net Sales associated with the divestiture of the Pop Secret popcorn business, which was completed on August 26, 2024, and the divestiture of the noosa yoghurt business which was completed on February 24, 2025
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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 driven primarily from lower base business margin Productivity improvements and cost savings initiatives partially offset inflation /other and net price realization Q3 FY25 Adjusted Gross Profit Margin* Bridge 20 + 60 bps 31.2% Base Business Gross Margin (10) bps Q3 FY24 Acquisition Q3 FY25 + 60 bps Volume / Mix (80) bps Net Price Realization (270) bps Inflation / Other + 130 bps Productivity Improvements 30.2% 30.1% Cost Savings Initiatives (110) bps vs. PY (100) bps vs. PY 1 2
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A&C +3% vs. PY1 Adjusted Administrative Expenses*Adjusted Marketing & Selling Expenses* Q3 FY25 Other Operating Items Other operating items as % of Net Sales improved vs. PY *See Non-GAAP reconciliation 1 Includes 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% Q3 FY24 Q3 FY25 $198 1 $207 1 8%8% +5% vs. PY Q3 FY24 Q3 FY25 $150 1$156 1 6%7% (4)% vs. PY % of Net Sales: $ Millions
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*See Non-GAAP reconciliation Adj. EBIT growth driven by acquisition contribution Lower adj. EBIT margin primarily reflects lower adj. gross margin Q3 FY25 Adjusted EBIT* Bridge Adjusted EBIT Margin* 14.9% (110) bps +70 bps 14.6% $354 $362 $8 $4 Q3 FY24 $5 Adjusted Gross Profit Impact* ($9) Adjusted Marketing & Selling Expenses* Adjusted Administrative & R&D Expenses* Adjusted Other Expenses / (Income)* Q3 FY25 +2% vs. PY $ Millions +0 bps +10 bps 22
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*See Non-GAAP reconciliation. Adj. EPS moved lower with adj. EBIT growth more than offset by higher interest expense The impact of the Sovos Brands acquisition was accretive to adj. EPS Q3 FY25 Adjusted EPS* Bridge 23 $0.75 $0.73 $0.02 Q3 FY24 Adjusted EBIT* ($0.04) Adjusted Interest* $0 Adjusted Taxes* $0 Share Impact Q3 FY25 (3)% vs. PY
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$229 $248 $763 $876 Q3 FY24 Q3 FY25 YTD Q3 FY24 YTD Q3 FY25 $1,272 $1,463 $4,058 $4,848 Q3 FY24 Q3 FY25 YTD Q3 FY24 YTD Q3 FY25 Q3 FY25 Meals & Beverages results Stronger U.S. Soup, Rao’s and Canada Net Sales contributed to over delivery, with some timing benefits *See Non-GAAP reconciliation 24 Net Sales Vol/Mix 1% 7% (3)% 3% Net Price Realization (1)% (1)% 1% (2)% Organic Net Sales* vs. PY 0% 6% (2)% 1% Operating Margin 18.0% 17.0% 18.8% 18.1% Operating Earnings $ Millions +15% vs. PY +19% vs. PY +8% vs. PY +15% vs. PY
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$167 $145 $489 $401 Q3 FY24 Q3 FY25 YTD Q3 FY24 YTD Q3 FY25 $1,097 $1,012 $3,285 $3,084 Q3 FY24 Q3 FY25 YTD Q3 FY24 YTD Q3 FY25 Q3 FY25 Snacks results Sequential operating margin improvement despite continued pressure on snacking Numbers may not add due to rounding *See Non-GAAP reconciliation $ Millions 25 Vol/Mix (1)% (5)% (2)% (3)% Net Price Realization 0% 0% 3% (1)% Organic Net Sales* vs. PY (1)% (5)% 0% (4)% Operating Margin 15.2% 14.3% 14.9% 13.0% (8)% vs. PY (6)% vs. PY (13)% vs. PY (18)% vs. PY Net Sales Operating Earnings
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Strong cash generation and continued de-leveraging Returned $403M to shareholders in FY25 year-to-date, including previously announced 5% dividend increase Capital Allocation 26 Net Cash Flows from Operations Q3 YTD FY24 Q3 YTD FY25 Invest for Growth Capital Expenditures $376 $296 Return Cash to Shareholders Dividends $334 $343 Share Repurchases $46 $60 $380 $403 Balance Sheet Leverage Ratio* 3.9x 3.6x Capital Allocation $897 $872 Q3 YTD FY24 Q3 YTD FY25 $ Millions *Calculated as Net Debt to TTM Adjusted EBITDA. See Non-GAAP reconciliation.
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FY24 Results FY25 Guidance1 Net Sales $9,636 +6% to +8% Organic Net Sales $9,457* (2)% to 0% Adjusted EBIT $1,454* +3% to +5% Adjusted EPS $3.08* (4)% to (1)% $2.95 to $3.05 • Reaffirms full-year fiscal 2025 guidance with adjusted EPS expected to be at the low end of the range (excluding tariffs) • Tariffs are expected to be an incremental $0.03 to $0.05 per share headwind • Impact of the 53rd week estimated to be worth ~2pts Net Sales and adj. EBIT growth and $0.05 adj. EPS • Expected low-single digit core inflation mitigated by ~3% productivity improvements and ~$130 million of enterprise cost savings • Capital expenditures for the full year at ~4.5% of Net Sales • Unchanged: • Marketing & Selling at the lower end of our targeted ~9% to 10% of Net Sales • Net interest expense of $325 to $330 million • Adjusted effective tax rate of ~24% • Diluted share count of ~300 million shares • Guidance reflects Pop Secret and noosa divestitures with a ~(2)% and ($0.05) impact on FY25 Net Sales growth and adj. EPS, respectively FY25 Guidance Outlook 1Guidance 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, the divestiture of the noosa yoghurt business which was sold on February 24, 2025, and the impact of the 53rd week in fiscal 2025, which is estimated to be worth approximately 2 points of reported net sales and adjusted EBIT growth and $0.05 of adjusted EPS. 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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28 Q&A Mick Beekhuizen President & Chief Executive Officer Carrie Anderson EVP & Chief Financial Officer
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Appendix
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 30 Third Quarter Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 27, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestitures Acquisition Meals & Beverages $ 1,463 $ 6 $ (149) $ 1,320 15% 6% (2%) 12% Snacks 1,012 1 - 1,013 (8%) (5%) (3%) 0% Total Net Sales $ 2,475 $ 7 $ (149) $ 2,333 4% 1% (2%) 6% Net Sales, Impact of Organic April 28, 2024 As Reported Divestitures Net Sales Meals & Beverages $ 1,272 $ (21) $ 1,251 Snacks 1,097 (30) 1,067 Total Net Sales $ 2,369 $ (51) $ 2,318 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 31 Nine Months Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 27, 2025 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestitures Acquisition Meals & Beverages $ 4,848 $ 13 $ (772) $ 4,089 19% 1% (1%) 19% Snacks 3,084 3 - 3,087 (6%) (4%) (3%) 0% Total Net Sales $ 7,932 $ 16 $ (772) $ 7,176 8% (1%) (1%) 11% Net Sales, Impact of Organic April 28, 2024 As Reported Divestitures Net Sales Meals & Beverages $ 4,058 $ (21) $ 4,037 Snacks 3,285 (83) 3,202 Total Net Sales $ 7,343 $ (104) $ 7,239 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 32 Third Quarter Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 28, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 1,272 $ - $ (166) $ 1,106 15% 0% 0% 15% Snacks 1,097 (1) - 1,096 (2%) (1%) (1%) 0% Total Net Sales $ 2,369 $ (1) $ (166) $ 2,202 6% 0% (1%) 7% Net Sales, Impact of Organic April 30, 2023 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 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 33 Nine Months Net Sales, Impact of Impact of Organic Net Sales, Organic Impact of Impact of April 28, 2024 As Reported Currency Acquisition Net Sales As Reported Net Sales Divestiture Acquisition Meals & Beverages $ 4,058 $ 3 $ (166) $ 3,895 2% (2%) 0% 4% Snacks 3,285 (2) - 3,283 (1%) 0% (1%) 0% Total Net Sales $ 7,343 $ 1 $ (166) $ 7,178 1% (1%) (1%) 2% Net Sales, Impact of Organic April 30, 2023 As Reported Divestiture Net Sales Meals & Beverages $ 3,971 $ - $ 3,971 Snacks 3,318 (46) 3,272 Total Net Sales $ 7,289 $ (46) $ 7,243 % Change
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 34 Three Months Ended Three Months Ended April 27, 2025 April 28, 2024 $ 66 $ 133 15 49 80 66 $ 161 $ 248 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 35*The sum of the individual per share amounts may not add due to rounding Third Quarter EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 161 6.5% $ 66 $ 0.22 Costs associated with cost savings and optimization initiatives 31 24 0.08 Commodity mark-to-market losses 10 7 0.02 Accelerated amortization 6 5 0.02 Impairment charges 150 112 0.37 Certain litigation expenses 4 4 $ 0.01 2025 – Adjusted $ 362 14.6% $ 218 $ 0.73 2024 – As Reported $ 248 10.5% $ 133 $ 0.44 Costs associated with cost savings and optimization initiatives 20 15 0.05 Commodity mark-to-market gains (13) (10) (0.03) Accelerated amortization 6 5 0.02 Costs associated with acquisition 93 81 0.27 2024 – Adjusted $ 354 14.9% $ 224 $ 0.75 $ Change - Adjusted $ 8 $ (6) $ (0.02) % Change - Adjusted 2% (30) bps (3%) (3%)
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 36 Nine Months Ended Nine Months Ended April 27, 2025 April 28, 2024 $ 457 $ 570 155 193 243 160 $ 855 $ 923 Net earnings, as reported Taxes Interest, net Earnings before interest and taxes, as reported
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 37*The sum of the individual per share amounts may not add due to rounding Nine Months EBIT EBIT Margin % Earnings Diluted EPS* 2025 – As Reported $ 855 10.8% $ 457 $ 1.52 Costs associated with cost savings and optimization initiatives 91 70 0.23 Commodity mark-to-market gains (8) (6) (0.02) Accelerated amortization 20 15 0.05 Impairment charges 176 131 0.44 Charges associated with divestitures 25 34 0.11 Certain litigation expenses 6 6 0.02 Postretirement actuarial losses 2 1 - Cybersecurity incident recoveries (1) (1) - 2025 – Adjusted $ 1,166 14.7% $ 707 $ 2.36 2024 – As Reported $ 923 12.6% $ 570 $ 1.91 Costs associated with cost savings and optimization initiatives 69 52 0.17 Commodity mark-to-market gains (5) (4) (0.01) Accelerated amortization 20 15 0.05 Costs associated with acquisition 112 98 0.33 Certain litigation expenses 3 3 0.01 Cybersecurity incident costs 3 2 0.01 2024 – Adjusted $ 1,125 15.3% $ 736 $ 2.46 $ Change - Adjusted $ 41 $ (29) $ (0.10) % Change - Adjusted 4% (60) bps (4%) (4%)
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 38 Net Interest Third Quarter Gross Profit GP % Expense EBT Tax Tax Rate 2025 – As Reported $ 728 29.4% $ 80 $ 81 $ 15 18.5% Costs associated with cost savings and optimization initiatives 7 - 31 7 Commodity mark-to-market losses 10 - 10 3 Accelerated amortization - - 6 1 Impairment charges - - 150 38 Certain litigation expenses - - 4 - 2025 – Adjusted $ 745 30.1% $ 80 $ 282 $ 64 22.7% 2024 – As Reported $ 732 30.9% $ 66 $ 182 $ 49 26.9% Costs associated with cost savings and optimization initiatives 3 - 20 5 Commodity mark-to-market gains (13) - (13) (3) Accelerated amortization - - 6 1 Costs associated with acquisition 18 (2) 95 14 2024 – Adjusted $ 740 31.2% $ 64 $ 290 $ 66 22.8% $ Change – Adjusted $ 5 $ 16 $ (8) $ (2) % Change – Adjusted 1% (110) bps 25% (3%) (3%) (10) bps
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 39 Third Quarter Marketing & Selling Expenses Other Expenses / (Income) 2025 – As Reported $ 216 $ 160 Costs associated with cost savings and optimization initiatives (9) - Impairment charges - (150) Accelerated amortization - (6) 2025 – Adjusted $ 207 $ 4 % of Net Sales – Adjusted 8.4% 0.2% 2024 – As Reported $ 206 $ 30 Costs associated with cost savings and optimization initiatives (6) - Accelerated amortization - (6) Costs associated with acquisition (2) (16) 2024 – Adjusted $ 198 $ 8 % of Net Sales – Adjusted 8.4% 0.3% % of Net Sales Change – Adjusted - bps (10) bps $ Change – Adjusted $ 9 $ (4) % Change - Adjusted 5% (50%)
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 40 Third Quarter Administrative R&D Expenses Expenses Total 2025 – As Reported $ 162 $ 23 $ 185 Costs associated with cost savings and optimization initiatives (8) (1) (9) Certain litigation expenses (4) - (4) 2025 – Adjusted $ 150 $ 22 $ 172 % of Net Sales – Adjusted 6.1% 0.9% 6.9% 2024 – As Reported $ 208 $ 27 $ 235 Costs associated with cost savings and optimization initiatives (13) (1) (14) Costs associated with acquisition (39) (2) (41) 2024 – Adjusted $ 156 $ 24 $ 180 % of Net Sales – Adjusted 6.6% 1.0% 7.6% % of Net Sales Change - Adjusted (50) bps (10) bps (70) bps $ Change – Adjusted $ (6) $ (2) $ (8) % Change - Adjusted (4%) (8%) (4%)
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 41 2025 – Adjusted 2024 – Adjusted $ Change Deduct: 2024 Adjusted tax rate impact on EBIT Impact to Net Earnings Third Quarter 2024 Diluted Shares Adjusted Diluted EPS Impact $ (12) 300 $ (0.04) Third Quarter – Adjusted Diluted EPS Impact from Adjusted Net Interest Expense Net Interest Expense $ 80 64 $ (16) $ 4
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($ millions, except per share amounts) Reconciliation of GAAP and Non-GAAP Financial Measures 42 Third 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 Third Quarter 2024 Diluted Shares Adjusted Diluted EPS Impact $ (2) $ 6 300 $ 0.02 EBIT $ 362 354 $ 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 $ 282 Decrease (Increase) in Adjusted Tax Rate 0.1% Adjusted EBT multiplied by the Change in Adjusted Tax Rate $ - Third Quarter 2024 Diluted Shares 300 Adjusted Diluted EPS Impact $ - Third Quarter
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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 Impact of Divestitures* ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 44*The Pop Secret popcorn business was sold on August 26, 2024 and the noosa yoghurt business was divested on February 24,2025
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($ millions, except per share data) Reconciliation of GAAP and Non-GAAP Financial Measures 45 *The sum of the individual per share amounts may not add due to rounding 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
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 46 Net Debt April 28, 2024 April 27, 2025 Short-Term Borrowings $ 1,427 $ 799 Long-Term Debt 5,752 6,097 Total Debt $ 7,179 $ 6,896 Less: Cash and Cash Equivalents (107) (143) Net Debt $ 7,072 $ 6,753
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 47 Three Months Ended Nine Months Ended Combined Twelve Months Ended July 28, 2024 April 27, 2025 April 27, 2025 Net Earnings, as reported $ (3) $ 457 $ 454 Taxes (3) 155 152 Interest, net 83 243 326 Earnings before interest and taxes, as reported $ 77 $ 855 $ 932 Costs associated with cost savings and optimization initiatives 40 91 131 Pension and postretirement actuarial losses 33 2 35 Commodity mark-to-market losses (gains) 27 (8) 19 Accelerated amortization 7 20 27 Costs associated with acquisition 14 - 14 Cybersecurity incident costs - (1) (1) Impairment charges 129 176 305 Certain litigation expenses 2 6 8 Divestiture - 25 25 Adjusted Earnings before interest and taxes $ 329 $ 1,166 $ 1,495 Depreciation and amortization, as reported $ 113 $ 328 $ 441 Costs associated with cost savings and optimization initiatives (10) (23) (33) Accelerated amortization (7) (20) (27) Adjusted Depreciation and amortization $ 96 $ 285 $ 381 Adjusted Earnings before interest, taxes, depreciation and amortization $ 425 $ 1,451 $ 1,876 Net Debt $ 6,753 Net Debt to Adjusted EBITDA 3.6 (a)+(b)(a) (b)
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 48 (a) (b) (c) =(a)+(b)+(c) Three Months Ended Nine Months Ended Sovos May 2023 – Combined Trailing Twelve Months Ended (TTM) July 30, 2023 April 28, 2024 March 11, 2024 April 28, 2024 $ 169 $ 570 $ 27 $ 766 56 193 14 263 47 160 29 236 $ 272 $ 923 $ 70 $ 1,265 16 69 - 85 (41) - - (41) (30) (5) - (35) 13 - - 13 7 20 - 27 5 112 20 137 - 3 - 3 - 3 - 3 $ 242 $ 1,125 $ 90 $ 1,457 $ 103 $ 298 $ 30 $ 431 (7) (18) - (25) (7) (20) - (27) $ 89 $ 260 $ 30 $ 379 $ 331 $ 1,385 $ 120 $ 1,836 $ 7,072 3.9 Commodity mark-to-market gains Net Earnings, as reported Taxes Interest, net Earnings before interest and taxes, as reported Costs associated with cost savings and optimization initiatives Pension and postretirement actuarial gains Accelerated amortization Accelerated amortization Costs associated with acquisition Charges associated with divestiture Cybersecurity incidents costs Certain litigation expenses Adjusted Earnings before interest and taxes Depreciation and amortization, as reported Costs associated with cost savings and optimization initiatives Net Debt to Adjusted EBITDA Adjusted Depreciation and amortization Adjusted Earnings before interest, taxes, depreciation and amortization Net Debt
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 49 Net Debt January 26, 2025 Short-Term Borrowings $ 1,179 Long-Term Debt 6,496 Total Debt $ 7,675 Less: Cash and Cash Equivalents (829) Net Debt $ 6,846
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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 3.7Net Debt to Adjusted EBITDA Adjusted Depreciation and amortization Adjusted Earnings before interest, taxes, depreciation and 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 divestitures 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 ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 50
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($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures 51 Nine Months Net Sales Meals & Beverages Net Sales 2025 $ 4,848 Add: Impact of Currency 13 Meals & Beverages $ 4,861 Meals & Beverages Net Sales 2024 $ 4,058 Add: Sovos Brands, Inc. July 31, 2023 - March 11, 2024 718 Less: noosa Divestiture February 26, 2024 - April 28, 2024 (27) Pro Forma Combined $ 4,749 % Change 2%