CAMPBELL'S Co
For the period ended Nov 2, 2025. Filed Dec 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 2, 2025 · Filed Dec 9, 2025
CPB$23.13-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-27; filed 2025-06-02.
0000016732-25-000064
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-02; filed 2025-12-09.
0000016732-25-000126
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 232 previous paragraphs and 145 current paragraphs.
79 unchanged; 50 reworded; 12 added; 83 removed; 20 previous and 4 current paragraphs rearranged.
Tables are not compared: 19 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Through the fourth quarter of 2025, the snacking and meals and beverages retail business in Latin America was managed under our Snacks segment. Beginning in 2026, the business is managed under our Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change.
Current report
Recent Developments
Current report
On December 8, 2025, we entered into purchase agreements to acquire 49% of the issued and outstanding equity interests of La Regina di San Marzano di Antonio Romano S.p.A. (La Regina SPA) and La Regina Atlantica, LLC (La Regina Atlantica, and together with La Regina SPA, La Regina). La Regina currently produces all of our Rao’s tomato-based pasta sauces. The aggregate consideration for the transaction is $286 million to be paid in two tranches. The remaining 51% of the outstanding equity interests of La Regina are subject to a call option granted to us and a put option granted to La Regina. The transaction is subject to certain customary closing conditions. For additional information on this pending transaction, see our Form 8-K filed with the U.S. Securities and Exchange Commission on December 9, 2025, and Note 18 to the Consolidated Financial Statements.
Current report
•Net sales decreased 3% in the quarter to $2.677 billion primarily due to unfavorable volume/mix and the impact of divestitures, partially offset by favorable net price realization.
Current report
•In the first quarter of 2026, we recognized costs associated with a pending acquisition in Other expenses / (income) of $2 million ($2 million after tax, or $.01 per share);
Current report
FIRST-QUARTER DISCUSSION AND ANALYSIS
Current report
Operating earnings from Meals & Beverages decreased 13%. The decrease was primarily due to lower gross profit and the impact of the divestiture. Gross profit margin decreased primarily due to the gross impact of tariffs, cost inflation and other supply chain costs and unfavorable volume/mix, partially offset by supply chain productivity improvements and favorable net price realization.
Current report
•$2 million of costs associated with a pending acquisition; and
Current report
•costs of $29 million related to cost savings and optimization initiatives;
Current report
•$7 million of accelerated amortization expense;
Current report
A summary of the pre-tax costs associated with the initiatives is as follows:
Current report
•the risks related to the La Regina transaction, including that the conditions to the completion of the transaction may not be satisfied, any regulatory approvals required for the transaction may not be obtained on the schedule or terms expected, the closing of the transaction may not occur or be delayed, and benefits from the transaction may not be fully realized or may take longer or cost more to be realized than expected;
Removed paragraphs (83)
Previous report
On March 12, 2024, we completed the acquisition of Sovos Brands, Inc. (Sovos Brands) for total purchase consideration of $2.899 billion. For additional information on the Sovos Brands acquisition, see Note 3 to the Consolidated Financial Statements. All references to the acquisition below refer to the Sovos Brands acquisition.
Previous report
Our industry continues to navigate global macroeconomic challenges, including tariffs and shifting global trade policies; changes in consumer purchasing and spending patterns; supply chain pressures; commodity cost volatility; labor market issues; and economic uncertainties amplified by increased regulatory activity. Tariffs on China, Canada, Mexico, the European Union and other countries have and are expected to result in retaliatory measures on U.S. goods, such as the 25% tariffs imposed by Canada on imports of certain U.S. goods, and increase costs. We are continuing to monitor the rapidly evolving tariff and global trade policies and are working with our suppliers to mitigate potential impacts on our business. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as recent legal challenges to the U.S.'s imposition of tariffs, negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions that may be granted, availability and cost of alternative sources of supply and demand for our products in affected markets.
Previous report
In addition, in light of recent actions by the United States Department of Health and Human Services, Food and Drug Administration (FDA) and states, we anticipate continued legislative and regulatory developments with respect to food ingredients, labeling and packaging at the state and federal levels, along with related changes in consumer expectations and behavior. In April 2025, the FDA announced a series of actions aimed at phasing out all “petroleum-based synthetic dyes” from the nation’s food supply, and in May 2025, the Make America Healthy Again (MAHA) Commission published a report discussing factors contributing to chronic childhood disease including diet, environmental exposure, lack of physical activity and healthcare. While the effects of all of these proposals remain uncertain at this time, we are continuing to monitor changes to laws and regulations that affect the food industry and evaluate their impact on our business and financial condition.
Previous report
•Net sales increased 4% in the quarter to $2.475 billion primarily due to the benefit from the acquisition of Sovos Brands and favorable volume/mix, partially offset by the impact of divestitures and lower net price realization. The increase in volume/mix was partially related to the favorable timing of shipments this quarter.
Previous report
•In the third quarter of 2025, the company performed an interim impairment assessment on the Snyder's of Hanover trademark within the Snacks segment and recognized an impairment charge of $150 million ($112 million after tax, or $.37 per share) on the trademark.
Previous report
In the second quarter of 2025, we performed an interim impairment assessment on certain salty snacks and cookie trademarks within our Snacks segment, including Tom's, Jays, Kruncher's, O-Ke-Doke, Stella D'oro and Archway, collectively referred to as our "Allied brands," and recognized an impairment charge of $15 million on the trademarks.
Previous report
In the second quarter of 2025, we performed an interim impairment assessment on the Late July trademark within our Snacks segment and recognized an impairment charge of $11 million on the trademark.
Previous report
In the second quarter of 2025, the total aggregate impact of the impairment charges was $26 million ($19 million after tax, or $.06 per share). Year-to-date in 2025, the total aggregate impact of the impairment charges was $176 million ($131 million after tax, or $.44 per share).
Previous report
The charges were included in Other expenses / (income);
Previous report
•In the first quarter of 2024, we announced our intent to acquire Sovos Brands and on March 12, 2024, the acquisition closed. In the third quarter of 2024, we incurred $93 million of costs associated with the acquisition, of which $16 million was recorded in Restructuring charges, $39 million in Administrative expenses, $16 million in Other expenses / (income), $2 million in Marketing and selling expenses, $2 million in Research and development expenses and $18 million in Cost of products sold, of which $17 million was associated with the acquisition date fair value adjustment for inventory. We also recorded costs of $2 million in Interest expense related to costs associated with the Delayed Draw Term Loan Credit Agreement (the 2024 DDTL Credit Agreement) used to fund the acquisition. The aggregate impact was $95 million, $81 million after tax, or $.27 per share. Year-to-date in 2024, we incurred $114 million of costs associated with the acquisition, of which $16 million was recorded to Restructuring charges, $39 million in Administrative expenses, $35 million in Other expenses / (income), $2 million in Marketing and selling expenses, $2 million in Research and development expenses, $18 million in Cost of products sold and $2 million in Interest expense. The aggregate after-tax impact was $98 million, or $.33 per share.
Previous report
Net earnings attributable to The Campbell's Company were $457 million ($1.52 per share) in the nine-month period this year, compared to $570 million ($1.91 per share) in the year-ago period. After adjusting for items impacting comparability, earnings decreased primarily due to higher interest expense and higher marketing and selling expenses, partially offset by an increase in gross profit and a lower effective tax rate.
Previous report
THIRD-QUARTER DISCUSSION AND ANALYSIS
Previous report
In Meals & Beverages, sales increased 15%, primarily due to a 12-point benefit from the acquisition of Sovos Brands. Excluding the benefit from the acquisition of Sovos Brands and the impact from the divestiture of the noosa yoghurt business, sales increased primarily due to gains in U.S. soup, Rao's pasta sauces and Canada, partially related to the favorable timing of shipments. Sales of Rao'spasta sauces increased due primarily to the timing of shipments related to the implementation of our existing SAP enterprise-resource planning system for Sovos Brands. Favorable volume/mix was partially offset by lower net price realization. Sales of U.S. soup increased 7% primarily due to increases in condensed soups, broth and ready-to-serve soups.
Previous report
(2)Prior year included a negative margin impact of 70 basis points from a Sovos Brands acquisition date fair value adjustment for inventory.
Previous report
Marketing and selling expenses as a percent of sales were 8.7% in 2025 and 2024. Marketing and selling expenses increased 5% in 2025 from 2024. The increase was primarily due to the impact of the acquisition (approximately 5 points).
Previous report
Other expenses were $160 million in 2025 compared to$30 million in 2024. Other expenses in 2025 included an impairment charge related to the Snyder's of Hanover trademark of $150 million and accelerated amortization expense of $6 million. Other expenses in 2024 included costs associated with the acquisition of $16 million and accelerated amortization expense of $6 million.
Previous report
Operating earnings from Meals & Beverages increased 8%. The increase was primarily due to the benefit of the acquisition of Sovos Brands, partially offset by a decline in the base business.
Previous report
Operating earnings from Snacks decreased 13%. The decrease was primarily due to lower gross profit, partially offset by lower administrative expenses.
Previous report
•$150 million of an impairment charge related to the Snyder's of Hanover trademark;
Previous report
•$6 million of accelerated amortization expense; and
Previous report
•$77 million of costs associated with the acquisition of Sovos Brands;
Previous report
•costs of $23 million related to cost savings and optimization initiatives;
Previous report
•$6 million of accelerated amortization expense; and
Previous report
•$13 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Previous report
The effective tax rate was 18.5% in 2025 and 26.9% in 2024. The decrease in the effective tax rate was primarily due to the items impacting comparability, including nondeductible costs associated with the acquisition of Sovos Brands in the year-ago quarter and the timing of recognition of tax expense related to the impairment charge.
Previous report
NINE-MONTH DISCUSSION AND ANALYSIS
Previous report
Sales
Previous report
Gross Profit
Previous report
(1)Includes an estimated positive margin impact of 50 basis points from the benefit of cost savings initiatives, which was more than offset by cost inflation and other factors.
Previous report
(2)Prior year included a negative margin impact of 20 basis points from a Sovos Brands acquisition date fair value adjustment for inventory.
Previous report
Marketing and Selling Expenses
Previous report
Marketing and selling expenses as a percent of sales were 9.1% in 2025 compared to 8.8% in 2024. Marketing and selling expenses increased 12% in 2025 from 2024. The increase was primarily due to the impact of the acquisition (approximately 9 points); higher advertising and consumer promotion expense (approximately 2 points) and higher costs related to cost savings and optimization initiatives (approximately 2 points). The increase in advertising and consumer promotion expense was driven by Meals & Beverages and Snacks.
Previous report
Administrative Expenses
Previous report
Other Expenses / (Income)
Previous report
Operating Earnings
Previous report
Segment operating earnings increased 2% in 2025 from 2024.
Previous report
Operating earnings from Meals & Beverages increased 15%. The increase was primarily due to the benefit of the acquisition of Sovos Brands.
Previous report
•$176 million of impairment charges related to the Snyder's of Hanover, Allied brands and Late July trademarks;
Previous report
•$20 million of accelerated amortization expense;
Previous report
•$96 million of costs associated with the acquisition of Sovos Brands;
Showing the first 40 of 83 passages. Open the source sections for the rest.
Reworded paragraphs (50)
Previous wording
Through the third quarter, we experienced a moderate level of input cost inflation and other supply chain costs. We anticipate continued supply chain productivity and benefits from cost savings initiatives to mitigate inflationary pressures and expect such benefits to offset incremental costs in 2025, excluding potential impacts of tariffs. We expect consumer trends to continue to evolve and our volumes to improve over time; however, economic pressures, including the challenges of persistent inflation and impacts of tariffs, may continue to negatively impact our volumes throughout 2025. We will continue to evaluate the evolving macroeconomic environment to take action to mitigate the impact on our business, consolidated results of operations and financial condition.
Current wording
Our industry continues to navigate a dynamic operating and regulatory environment driven by commodity cost volatility, supply chain pressures, tariffs and shifting global trade policies, evolving consumer purchasing and spending patterns and other economic uncertainties. Through the first quarter, we experienced significantly elevated input cost inflation and other supply chain costs, primarily driven by the impacts of tariffs. We anticipate continued supply chain productivity and benefits from cost savings initiatives to mitigate some of these costs in 2026. We expect consumer trends to continue to evolve and our volumes to improve over time; however, shifting consumer behaviors may continue to negatively impact our volumes throughout 2026. We will continue to evaluate the evolving macroeconomic environment and take actions to mitigate the impact on our business, consolidated results of operations and financial condition.
Previous wording
•Gross profit, as a percent of sales, was 29.4% in 2025 compared to 30.9% in the prior-year quarter. The decrease was primarily due to the impact of cost inflation and other supply chain costs, mark-to-market adjustments on outstanding undesignated commodity hedges and unfavorable net price realization, partially offset by benefits from supply chain productivity improvements, the prior-year impact from a Sovos Brands acquisition date fair value adjustment for inventory and favorable volume/mix.
Current wording
•Gross profit, as a percent of sales, was 29.6% in 2026 compared to 31.3% in the prior-year quarter. The decrease was primarily due to the impact of cost inflation and other supply chain costs and the gross impact of tariffs, partially offset by benefits from supply chain productivity improvements and favorable net price realization.
Previous wording
•Earnings per share were $.22 in 2025, compared to $.44 in the prior-year quarter. The current quarter included expenses of $.51 per share and the prior-year quarter included expenses of $.30 per share from items impacting comparability as discussed below.
Current wording
•Earnings per share were $.65 in 2026, compared to $.72 in the prior-year quarter. The current quarter included expenses of $.12 per share and the prior-year quarter included expenses of $.16 per share from items impacting comparability as discussed below.
Previous wording
•We implemented several cost savings initiatives in recent years. In the third quarter of 2025, we recorded Restructuring charges of $6 million and implementation costs and other related costs of $7 million in Cost of products sold, $7 million in Administrative expenses and $1 million in Research and development expenses related to these initiatives. In the third quarter of 2024, we recorded implementation costs and other related costs of $13 million in Administrative expenses, $3 million in Cost of products sold, $1 million in Marketing and selling expenses, $1 million in Research and development expenses and a reduction to Restructuring charges of $3 million related to these initiatives. Year-to-date in 2025, we recorded Restructuring charges of $17 million and implementation costs and other related costs of $26 million in Administrative expenses, $25 million in Cost of products sold, $3 million in Research and development expenses and $2 million in Marketing and selling expenses related to these initiatives. Year-to-date in 2024, we recorded Restructuring charges of $1 million and implementation costs and other related costs of $47 million in Administrative expenses, $9 million in Cost of products sold, $4 million in Marketing and selling expenses and $3 million in Research and development expenses related to these initiatives.
Current wording
•We implemented several cost savings initiatives in recent years. In the first quarter of 2026, we recorded Restructuring charges of $3 million and implementation costs and other related costs of $8 million in Administrative expenses and $7 million in Cost of products sold related to these initiatives. In the first quarter of 2025, we recorded Restructuring charges of $6 million and implementation costs and other related costs of $11 million in Administrative expenses, $8 million in Cost of products sold, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives.
Previous wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. In the third quarter of 2025, we recognized $9 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative. In the third quarter of 2024, we recognized $5 million in Marketing and selling expenses related to this initiative. Year-to-date in 2025, we recognized $17 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.
Current wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. In the first quarter of 2026, we recognized $16 million in Marketing and selling expenses related to this initiative. In the first quarter of 2025, we recognized $8 million in Marketing and selling expenses related to this initiative.
Previous wording
In the third quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $31 million ($24 million after tax, or $.08 per share). In the third quarter of 2024, the total aggregate impact related to the cost savings and optimization initiatives was $20 million ($15 million after tax, or $.05 per share). Year-to-date in 2025, the total aggregate impact related to the cost savings and optimization initiatives was $91 million ($70 million after tax, or $.23 per share). Year-to-date in 2024, the total aggregate impact related to the cost savings and optimization initiatives was $69 million ($52 million after tax, or $.17 per share). See Note 8 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Current wording
In the first quarter of 2026, the total aggregate impact related to the cost savings and optimization initiatives was $34 million ($26 million after tax, or $.09 per share). In the first quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $35 million ($27 million after tax, or $.09 per share). See Note 7 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Previous wording
•In the third quarter of 2025, we recognized losses in Cost of products sold of $10 million ($7 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the third quarter of 2024, we recognized gains in Cost of products sold of $13 million ($10 million after tax, or $.03 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2025, we recognized gains in Cost of products sold of $8 million ($6 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2024, we recognized gains in Cost of products sold of $5 million ($4 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Current wording
•In the first quarter of 2026, we recognized losses in Cost of products sold of $2 million ($2 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the first quarter of 2025, we recognized gains in Cost of products sold of $4 million ($3 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Previous wording
•In the third quarter of 2025, we recorded litigation expenses in Administrative expenses of $4 million ($4 million after tax, or $.01 per share) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. Year-to-date in 2025, we recorded litigation expenses in Administrative expenses of $6 million ($6 million after tax, or $.02 per share) related to Plum and certain other litigation matters. Year-to-date in 2024, we recorded litigation expenses in Administrative expenses of $3 million ($3 million after tax, or $.01 per share) related to Plum;
Current wording
•In the first quarter of 2026, we recorded litigation expenses in Administrative expenses of $10 million ($7 million after tax, or $.02 per share) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. In the first quarter of 2025, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to Plum and certain other litigation matters;
Previous wording
•Year-to-date in 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023. Year-to-date in 2024, we recorded costs of $2 million in Cost of products sold and $1 million in Administrative expenses (aggregate impact of $2 million after tax, or $.01 per share) related to the cybersecurity incident;
Current wording
•In the first quarter of 2026 and 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023;
Previous wording
•Year-to-date in 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment; and
Current wording
•In the first quarter of 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment;
Previous wording
•In the third quarter of 2025 and 2024, we recorded accelerated amortization expense in Other expenses / (income) of $6 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023. Year-to-date in 2025 and 2024, we recorded accelerated amortization expense in Other expenses / (income) of $20 million ($15 million after tax, or $.05 per share);
Current wording
•In the first quarter of 2025, we recorded accelerated amortization expense in Other expenses / (income) of $7 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023; and
Previous wording
•In the third quarter of 2025, we completed the sale of our noosa yoghurt business. In the second quarter of 2025, we recorded $15 million ($.05 per share) of tax expense related to the sale. Year-to-date in 2025, we recorded an after-tax loss of $15 million ($.05 per share) on the sale of the business, which is subject to the finalization of certain purchase price adjustments. In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business. Year-to-date in 2025, the total aggregate impact of charges associated with divestitures was $25 million ($34 million after tax, or $.11 per share);
Current wording
•In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business.
Previous wording
Net earnings attributable to The Campbell's Company were $66 million ($.22 per share) in the current quarter, compared to $133 million ($.44 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to higher interest expense and higher marketing and selling expenses, partially offset by lower administrative expenses.
Current wording
Net earnings attributable to The Campbell's Company were $194 million ($.65 per share) in the current quarter, compared to $218 million ($.72 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to lower gross profit, partially offset by lower administrative expenses and lower marketing and selling expenses. The estimated net impact of tariffs was approximately $.04 per share in the current quarter. The negative impact from divestitures was approximately $.01 per share in the current quarter.
Previous wording
In Meals & Beverages, sales increased 19%, primarily due to a 19-point benefit from the acquisition of Sovos Brands. Excluding the benefit from the Sovos Brands acquisition and the impact from the divestiture of the noosa yoghurt business, sales increased primarily due to gains in Rao's pasta sauces, foodservice and Canada, partially offset by declines in SpaghettiOs. Sales of Rao'spasta sauces increased due primarily to the timing of shipments related to the implementation of our existing SAP enterprise-resource planning system for Sovos Brands. Favorable volume/mix was partially offset by lower net price realization. Sales of U.S. soup were comparable with prior year as decreases in ready-to-serve soups and condensed soups were offset by increases in broth.
Current wording
In Meals & Beverages, sales decreased 4%. Excluding the impact from the divestiture of the noosa yoghurt business, sales decreased primarily due to declines in U.S. soup, Canada, SpaghettiOs, Pace Mexican sauces and V8 beverages, partially offset by gains in Rao's. Unfavorable volume/mix was partially offset by favorable net price realization. Sales of U.S. soup decreased 2% primarily due to decreases in ready-to-serve soups and condensed soups, partially offset by increases in broth.
Previous wording
In Snacks, sales decreased 6%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased due to declines in third-party partner brands and contract manufacturing, Goldfish crackers, Snyder's of Hanover pretzels, Pepperidge Farm cookies, Kettle Brand potato chips, Late July snacks and Lance sandwich crackers. Sales were impacted by volume/mix declines and lower net price realization.
Current wording
In Snacks, sales decreased 2%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased primarily due to declines in third-party partner brands and contract manufacturing, Snyder's of Hanover pretzels, fresh bakery, Goldfish crackers and Cape Cod potato chips, partially offset by gains in Pepperidge Farm cookies. Sales were impacted by volume/mix declines, partially offset by favorable net price realization.
Previous wording
Gross profit, defined as Net sales less Cost of products sold, decreased by $4 million in 2025 from 2024. As a percent of sales, gross profit was 29.4% in 2025 and 30.9% in 2024.
Current wording
Gross profit, defined as Net sales less Cost of products sold, decreased by $75 million in 2026 from 2025. As a percent of sales, gross profit declined to 29.6% in 2026 from 31.3% in 2025, due in part to the negative impact of tariffs.
Previous wording
The 150 basis-point decrease in gross profit margin was due to the following factors:
Current wording
The 170 basis-point decrease in gross profit margin was due to the following factors:
Previous wording
(1)Includes an estimated positive margin impact of 60 basis points from the benefit of cost savings initiatives, which was more than offset by cost inflation and other factors, including a 90 basis-point negative impact from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges.
Current wording
(1)Includes an estimated negative margin impact of 200 basis points from the gross impact of tariffs, a negative margin impact of 20 basis points from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges, partially offset by a positive margin impact of 20 basis points from the benefit of cost savings initiatives.
Previous wording
(3)Includes the impact of operating leverage.
Current wording
(2)Includes the impact of operating leverage.
Previous wording
Administrative expenses as a percent of sales were 6.3% in 2025 compared to 7.6% in 2024. Administrative expenses decreased 10% in 2025 from 2024. The decrease was primarily due to costs associated with the acquisition in the prior year (approximately 7 points); increased benefits from cost savings initiatives (approximately 7 points); lower costs related to cost savings initiatives (approximately 4 points); lower benefit-related costs (approximately 1 point) and lower incentive compensation (approximately 1 point), partially offset by higher general administrative costs and inflation (approximately 6 points) and the impact of the acquisition (approximately 4 points).
Current wording
Marketing and selling expenses as a percent of sales were 9.5% in 2026 compared to 9.0% in 2025. Marketing and selling expenses increased 1% in 2026 from 2025. The increase was primarily due to higher costs associated with costs savings and optimization initiatives (approximately 3 points) and higher marketing expenses (approximately 2 points), partially offset by lower selling expenses (approximately 2 points); increased benefits from cost savings initiatives (approximately 1 point) and lower incentive compensation (approximately 1 point).
Previous wording
Administrative expenses as a percent of sales were 6.5% in 2025 compared to 8.8% in 2024. Administrative expenses decreased 22% in 2025 from 2024. The decrease was primarily due to costs associated with the acquisition in the prior year (approximately 19 points); increased benefits from cost savings initiatives (approximately 9 points) and lower costs associated with cost savings initiatives (approximately 2 points), partially offset by higher general administrative costs and inflation (approximately 5 points) and the impact of the acquisition (approximately 2 points).
Current wording
Administrative expenses as a percent of sales were 6.2% in 2026 compared to 6.3% in 2025. Administrative expenses decreased 5% in 2026 from 2025. The decrease was primarily due to increased benefits from cost savings initiatives (approximately 3 points); lower incentive compensation (approximately 3 points); lower benefit-related costs (approximately 2 points) and lower costs associated with cost savings initiatives (approximately 2 points), partially offset by higher certain litigation expenses (approximately 5 points).
Previous wording
Other expenses were $244 million in 2025 compared to $80 million in 2024. Other expenses in 2025 included impairment charges related to the Snyder's of Hanover, Allied brands and Late July trademarks of $176 million, a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $20 million and a postretirement actuarial loss of $2 million. Other expenses in 2024 included costs associated with the acquisition of $35 million and accelerated amortization expense of $20 million.
Current wording
Other expenses were $9 million in 2026 compared to $43 million in 2025. Other expenses in 2026 included costs associated with a pending acquisition of $2 million. Other expenses in 2025 included a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $7 million and a postretirement actuarial loss of $2 million.
Previous wording
Segment operating earnings decreased 1% in 2025 from 2024.
Current wording
Segment operating earnings decreased 12% in 2026 from 2025.
Previous wording
Operating earnings from Snacks decreased 18%. The decrease was primarily due to lower gross profit and higher marketing and selling expenses, partially offset by lower administrative expenses. Gross profit decreased primarily due to the impact of cost inflation and other supply chain costs, unfavorable volume/mix and unfavorable net price realization, partially offset by supply chain productivity improvements and benefits from cost savings initiatives.
Current wording
Operating earnings from Snacks decreased 10%. The decrease was primarily due to lower gross profit. Gross profit margin decreased primarily due to cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.
Previous wording
•costs of $25 million related to costs savings and optimization initiatives;
Current wording
•costs of $31 million related to costs savings and optimization initiatives;
Previous wording
•$4 million of certain litigation expenses, including expenses related to Plum.
Current wording
•$10 million of certain litigation expenses, including expenses related to Plum;
Previous wording
•$10 million of unrealized mark-to-market losses on outstanding undesignated commodity hedges;
Current wording
•$2 million of unrealized mark-to-market losses on outstanding undesignated commodity hedges;
Previous wording
•$6 million of certain litigation expenses, including expenses related to Plum;
Current wording
•$1 million of certain litigation expenses, including expenses related to Plum;
Previous wording
Interest expense of $85 million in 2025 increased from $70 million in 2024 primarily due to higher levels of debt and higher average interest rates on the debt portfolio.
Current wording
Interest expense of $81 million in 2026 decreased from $87 million in 2025 primarily due to lower levels of debt.
Previous wording
The effective tax rate was 25.3% in 2025 and 25.3% in 2024. The effective tax rate was comparable primarily due to $15 million of tax expense related to the sale of the noosa yoghurt business, offset by nondeductible costs associated with the acquisition of Sovos Brands in the prior year and excess tax benefits associated with the vesting of stock-based compensation awards in the current year.
Current wording
The effective tax rate was 24.2% in 2026 and 23.2% in 2025. The increase in the effective tax rate was primarily due to excess tax benefits in the prior year and shortfalls in the current year associated with the vesting of stock-based compensation awards, partially offset by the favorable resolution of certain state tax matters in the current year.
Previous wording
On September 10, 2024, we announced plans to implement cost savings initiatives beginning in 2025, including initiatives to further optimize our supply chain and manufacturing network, optimization of our information technology infrastructure and targeted cost management. We also identified additional opportunities for cost synergies as we integrate Sovos Brands. As mentioned above, we substantially completed our previous multi-year cost savings initiatives and Snyder's-Lance cost transformation program and integration. Certain initiatives from that program have been incorporated into our 2025 cost savings initiatives. Cost estimates for the 2025 initiatives, as well as timing for certain activities, are continuing to be developed.
Current wording
On September 10, 2024, we announced plans to implement cost savings initiatives beginning in 2025, including initiatives to further optimize our supply chain and manufacturing network, optimization of our information technology infrastructure and targeted cost management. We also identified additional opportunities for cost synergies as we integrated Sovos Brands, Inc. (Sovos Brands). As of July 28, 2024, we substantially completed our previous multi-year cost savings initiatives and Snyder's-Lance, Inc. cost transformation program and integration and had identified initial opportunities for cost synergies as we integrated Sovos Brands. Certain initiatives from those programs have been incorporated into our 2025 cost savings initiatives. Cost estimates for the 2025 initiatives, as well as timing for certain activities, are continuing to be developed.
Previous wording
A summary of the pre-tax charges recognized in the Consolidated Statements of Earnings related to these initiatives is as follows:
Current wording
A summary of the pre-tax charges recorded in the Consolidated Statements of Earnings related to these initiatives is as follows:
Previous wording
The total estimated pre-tax costs for actions that have been identified to date are approximately $210 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed.
Current wording
The total estimated pre-tax costs for actions that have been identified to date are approximately $230 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed.
Previous wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $25 million in severance pay and benefits; approximately $55 million in asset impairment and accelerated depreciation; and approximately $130 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 70%; Snacks - approximately 9% and Corporate - approximately 21%.
Current wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $35 million in severance pay and benefits; approximately $50 million in asset impairment and accelerated depreciation; and approximately $145 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 61%; Snacks - approximately 19% and Corporate - approximately 20%.
Previous wording
Of the aggregate $210 million of pre-tax costs identified to date, we expect approximately $150 million will be cash expenditures. In addition, we expect to invest approximately $215 million in capital expenditures, of which we invested $88 million as of April 27, 2025. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands.
Current wording
Of the aggregate $230 million of pre-tax costs identified to date, we expect approximately $175 million will be cash expenditures. In addition, we expect to invest approximately $205 million in capital expenditures, of which we invested $164 million as of November 2, 2025. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands.
Previous wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $250 million by the end of 2028. As of April 27, 2025, we have generated total program-to-date pre-tax savings of $110 million.
Current wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $375 million by the end of 2028. As of November 2, 2025, we have generated total program-to-date pre-tax savings of $160 million.
Previous wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three- and nine-month periods ended April 27, 2025, we incurred $9 million and $17 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative, respectively. In the three- and nine-month periods ended April 28, 2024, we incurred $5 million in Marketing and selling expenses related to this initiative. As of April 27, 2025, we have incurred $22 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.
Current wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three-month period ended November 2, 2025, we incurred $16 million in
Previous wording
We generated cash flows from operations of $872 million in 2025, compared to $897 million in 2024. The decline in 2025 was primarily due to changes in working capital.
Current wording
We generated cash flows from operations of $224 million in 2026, compared to $225 million in 2025. The decline in 2026 was primarily due to lower cash earnings mostly offset by changes in working capital.
Previous wording
We had negative working capital of $623 million as of April 27, 2025, and $1.386 billion as of July 28, 2024. Current assets were less than current liabilities, which included debt maturing in one year, due to a focus on lowering core working capital requirements. Total debt maturing within one year was $799 million as of April 27, 2025, and $1.423 billion as of July 28, 2024.
Current wording
We had negative working capital of $567 million as of November 2, 2025, and $674 million as of August 3, 2025. Current assets were less than current liabilities, which included debt maturing in one year, due to a focus on lowering core working capital requirements. Total debt maturing within one year was $874 million as of November 2, 2025, and $762 million as of August 3, 2025. We have $400 million aggregate principal amount of senior notes maturing in March 2026 that we expect to repay and/or refinance using available resources, which may include cash on hand, accessing the capital markets, commercial paper and/or revolving credit facility.
Previous wording
As part of our focus to lower core working capital requirements, we have worked with our suppliers to optimize our terms and conditions, including the extension of payment terms. Our current payment terms with our suppliers, which we deem to be commercially reasonable, generally range from 0 to 120 days. We also maintain agreements with third-party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell those payment obligations to participating financial institutions. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. Supplier participation in these agreements is voluntary. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions. We have not pledged assets as security or provided any guarantees in connection with these arrangements. The payment of these obligations is included in cash provided by operating activities in the Consolidated Statements of Cash Flows. Amounts outstanding under these programs, which are included in Accounts payable on the Consolidated Balance Sheets, were approximately $254 million at April 27, 2025 and $243 million at July 28, 2024.
Current wording
As part of our focus to lower core working capital requirements, we have worked with our suppliers to optimize our terms and conditions, including the extension of payment terms. Our current payment terms with our suppliers, which we deem to be commercially reasonable, generally range from 0 to 120 days. We also maintain agreements with third-party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell those payment obligations to participating financial institutions. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. Supplier participation in these agreements is voluntary. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions regarding these transactions. We have not pledged assets as security or provided any guarantees in connection with these arrangements. The payment of these obligations is included in cash provided by operating activities in the Consolidated Statements of Cash Flows. Our outstanding obligations confirmed as valid under these programs, which are included in Accounts payable on the Consolidated Balance Sheets, were approximately $264 million at November 2, 2025 and $240 million at August 3, 2025.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•$4 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Current report — wording carried from elsewhere
•$1 million of insurance recoveries related to a cybersecurity incident.
Current report — wording carried from elsewhere
Marketing and selling expenses related to this initiative. In the three-month period ended October 27, 2024, we incurred $8 million in Marketing and selling expenses related to this initiative. As of November 2, 2025, we have incurred $41 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.
Current report — wording carried from elsewhere
This Report contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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
Rearranged previous paragraphs (20)
Previous report — wording carried elsewhere
In Snacks, sales decreased 8%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased due to declines in Goldfish crackers, third-party partner brands and contract manufacturing, Snyder's of Hanover pretzels, Late July snacks and Lance sandwich crackers. Sales were impacted by volume/mix declines and neutral net price realization.
Previous report — wording carried elsewhere
An analysis of net sales by reportable segment follows:
Previous report — wording carried elsewhere
An analysis of percent change of net sales by reportable segment follows:
Previous report — wording carried elsewhere
(1)Includes revenue reductions from trade promotion and consumer coupon redemption programs.
Previous report — wording carried elsewhere
(2)Sum of the individual amounts does not add due to rounding.
Previous report — wording carried elsewhere
Gross profit, defined as Net sales less Cost of products sold, increased by $118 million in 2025 from 2024. As a percent of sales, gross profit was 30.4% in 2025 and 31.3% in 2024.
Previous report — wording carried elsewhere
The 90 basis-point decrease in gross profit margin was due to the following factors:
Previous report — wording carried elsewhere
(3)Includes the impact of operating leverage.
Previous report — wording carried elsewhere
An analysis of operating earnings by segment follows:
Previous report — wording carried elsewhere
(1)See Note 8 to the Consolidated Financial Statements for additional information on restructuring charges.
Previous report — wording carried elsewhere
Corporate expense in 2025 included the following:
Previous report — wording carried elsewhere
•costs of $74 million related to costs savings and optimization initiatives;
Previous report — wording carried elsewhere
•$8 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Previous report — wording carried elsewhere
Corporate expense in 2024 included the following:
Previous report — wording carried elsewhere
•$5 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Previous report — wording carried elsewhere
A summary of the pre-tax charges recorded in the Consolidated Statement of Earnings related to these initiatives is as follows:
Previous report — wording carried elsewhere
Segment operating results do not include restructuring charges, implementation costs and other related costs because we evaluate segment performance excluding such charges. A summary of the pre-tax costs associated with segments is as follows:
Previous report — wording carried elsewhere
On March 19, 2024, pursuant to the registration statement, we issued senior unsecured notes of $2.5 billion, consisting of:
Previous report — wording carried elsewhere
The notes contain customary covenants and events of default. If a change of control triggering event occurs, we will be required to offer to purchase the notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the purchase date. We used the net proceeds from the sale of the notes to repay the $2 billion of outstanding borrowings under the 2024 DDTL Credit Agreement used to fund the Sovos Brands acquisition, including fees and expenses in connection therewith, and the remainder of the net proceeds to repay commercial paper.
Previous report — wording carried elsewhere
On April 5, 2024, we repaid $100 million of the $500 million outstanding under the 2022 DDTL Credit Agreement due November 15, 2025.