Executive Summary
Campbell Soup Company posted a solid QQ1 2025 with a revenue of $2.772 billion, marking a YoY increase of 12.9% and a QoQ gain of 20.9%. The period featured gross profit of $867 million and a gross margin of 31.28%, with operating income of $367 million and an operating margin of 13.24%. Net income came in at $218 million, or $0.73 per basic share and $0.72 per diluted share, reflecting YoY growth of about 7.4% and a notably strong sequential improvement in profitability. Free cash flow totaled approximately $115 million, supported by $225 million of operating cash flow and capital expenditures of $110 million. The company maintained a disciplined dividend policy (payout ~53.2%) and executed modest share repurchases while undertaking a meaningful debt repayment program, leaving net debt around $7.11 billion.
From a strategic standpoint, Campbell continues to benefit from price realization and favorable mix within its Americas Simple Meals and Beverages and Global Biscuits and Snacks segments. However, leverage remains a material consideration, with net debt to EBITDA approaching the higher end of the range (approximately 15x) and liquidity metrics that reflect a near-term working capital cycle. Management commentary (where available) emphasized ongoing cost discipline and portfolio optimization as levers for margin resilience amid input-cost volatility and broader macro headwinds. The QQ1 2025 results position Campbell to pursue selective product and channel investments while monitoring commodity costs, currency dynamics, and competitive intensity.
Overall, the quarter demonstrates a constructive revenue trajectory and margin discipline, but the equity case remains tied to stronger debt leverage normalization, continued cash flow generation, and evidence of sustainable top-line growth beyond the current quarter step-ups.
Key Performance Indicators
QoQ: 376.62% | YoY:15.77%
QoQ: 7 366.67% | YoY:7.39%
QoQ: 7 400.00% | YoY:7.35%
Key Insights
Revenue: $2.772B; YoY +12.9%; QoQ +20.9%. Rationale: price realization and favorable mix contributed to topline expansion, with ongoing demand in core soups and convenient meals.
Gross Profit: $867M; Gross Margin 31.28%; YoY +11.7%; QoQ +28.4%. Rationale: favorable product mix and pass-through of input costs supported margins despite inflationary pressures in key commodities.
Operating Income: $367M; Operating Margin 13.24%; YoY +15.8%; QoQ +376.6%. Rationale: efficiency in SG&A and discip...
Financial Highlights
Revenue: $2.772B; YoY +12.9%; QoQ +20.9%. Rationale: price realization and favorable mix contributed to topline expansion, with ongoing demand in core soups and convenient meals.
Gross Profit: $867M; Gross Margin 31.28%; YoY +11.7%; QoQ +28.4%. Rationale: favorable product mix and pass-through of input costs supported margins despite inflationary pressures in key commodities.
Operating Income: $367M; Operating Margin 13.24%; YoY +15.8%; QoQ +376.6%. Rationale: efficiency in SG&A and disciplined cost management contributed to improved profitability, with quarterly base effects driving outsized sequential growth.
Net Income: $218M; Net Margin 7.86%; YoY +7.39%; QoQ +7366.7%. Rationale: tax rate and non-operating items remained stable, allowing higher net income in the quarter.
EPS: Basic $0.73; Diluted $0.72; YoY +7.35%; QoQ +7400.00%. Rationale: higher net income and share count stability supported earnings per share growth, aided by share repurchases.
EBITDA: $476M; EBITDA Margin 17.17%. Rationale: ongoing EBITDA strength reflects operating efficiency and pricing power.
Cash Flow and Liquidity: Operating cash flow $225M; Capex $110M; Free cash flow $115M; Net change in cash +$700M; Cash at end $808M. Liquidity metrics: current ratio 0.905, quick ratio 0.498, cash ratio 0.233. Rationale: cash generation supports debt service and dividend, but liquidity remains modest against a high accumulated balance sheet footprint.
Balance Sheet Highlights: Total assets $16.112B; Cash and cash equivalents $808M; Goodwill $5.056B; Intangible assets $4.669B; Total liabilities $12.268B; Total equity $3.842B. Leverage: long-term debt $6.705B; total debt $7.917B; net debt $7.110B. Key ratios: debt to capitalization 0.683; debt to equity 2.15; interest coverage ~5.5x (calculated from EBITDA/Interest). Rationale: high intangible asset base and elevated leverage present ongoing credit-risk considerations, though cash flow supports debt service.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.77B |
12.87% |
20.89% |
| Gross Profit |
867.00M |
11.73% |
28.44% |
| Operating Income |
367.00M |
15.77% |
376.62% |
| Net Income |
218.00M |
7.39% |
7 366.67% |
| EPS |
0.73 |
7.35% |
7 400.00% |
Key Financial Ratios
operatingProfitMargin
16%
operatingCashFlowPerShare
$0.74
freeCashFlowPerShare
$0.38
dividendPayoutRatio
53.2%
Management Commentary
No earnings call transcript was provided in the data. As a result, transcript-based themes and quotes could not be extracted or synthesized. If a transcript becomes available, we will incorporate management-specific commentary on margin drivers, mix shift, and strategic priorities.
Forward Guidance
No formal forward guidance was disclosed in the provided data for QQ1 2025 results. Given the positive topline momentum and margin discipline observed in the quarter, investors should monitor management commentary for any updates on targeted revenue growth ranges, margin trajectory, and capital deployment priorities (e.g., debt reduction, dividend policy, and selective portfolio investments). In the absence of explicit guidance, the key factors to watch include commodity cost inflation, input cost containment, pricing realization sustainability, currency effects, and any announced strategic actions to optimize the portfolio and cost structure.