[Management View]
Campbell's management highlighted the mixed performance in Q3 2025, with Meals & Beverages exceeding expectations due to strong in-market performance and favorable shipment timing. However, the Snacks segment faced challenges from category softness and competitive pressures. The company remains focused on refining plans to improve in-market performance and leveraging its scale for growth.

[Outlook]
The company reaffirmed its full-year fiscal 2025 guidance but expects adjusted earnings at the low end due to slower-than-anticipated recovery in the Snacks business. Tariff impacts are estimated to be a $0.03–$0.05 headwind to adjusted EPS, not included in current guidance. The fiscal year includes a 53rd week, contributing to net sales and adjusted EBIT growth.

[Financial Performance]
- Organic Net Sales Growth: 1%, led by Meals & Beverages.
- Reported Net Sales Growth: 4%, with contributions from the SOVOS acquisition.
- Adjusted EBIT: Increased 2%, offset by lower base business performance.
- Adjusted EPS: $0.73, down 3%, with SOVOS acquisition accretive to earnings.

[Q&A Highlights]
1. Question: How is Campbell addressing the pressure in the Snacks segment, and what are the expectations for the next few quarters?
Answer: The pressure is due to deteriorating consumer confidence and increased competition. Campbell is focusing on innovation, price pack architecture, and strategic promotional activities to meet consumer needs. The company expects a recovery in the Snacks business in fiscal 2026.

2. Question: What is the sustainability of the at-home cooking trend in Meals & Beverages?
Answer: The trend is driven by consumer preference for value, quality, and convenience. Campbell's portfolio is well-positioned to capitalize on this trend, with both mainstream and premium offerings. The company expects continued growth in this segment.

3. Question: How will tariff-related costs impact the financials, and what mitigation strategies are in place?
Answer: Tariff impacts are being phased in, affecting soup exports to Canada, tinplate for cans, and pasta sauce imports from Italy. Campbell is managing the impact through strategic inventory management and supplier partnerships.

4. Question: What is the outlook for RAYOS growth, and how is it performing?
Answer: RAYOS is expected to grow in high single digits for fiscal 2025. The brand is performing well, with recent in-market consumption showing positive trends.

5. Question: How is Campbell addressing the better-for-you and splurge-worthy segments in its portfolio?
Answer: Campbell is focusing on innovation and meeting consumer needs in these segments. The company is confident in its current portfolio and plans to continue evolving with consumer preferences.

[Sentiment Analysis]
Analysts expressed concern over the Snacks segment's performance but were optimistic about the Meals & Beverages division. Management maintained a cautious yet confident tone, emphasizing strategic initiatives and long-term growth potential.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|---------|---------|
| Organic Net Sales Growth | 1% | N/A |
| Reported Net Sales Growth | 4% | N/A |
| Adjusted EBIT Growth | 2% | N/A |
| Adjusted EPS | $0.73 | N/A |
| Snacks Organic Net Sales | -5% | N/A |
| Meals & Beverages Organic Net Sales | 6% | N/A |

[Risks and Concerns]
Key risks include the slower recovery in the Snacks segment, tariff-related costs, and the uncertain trade environment. The company is actively working to mitigate these risks through strategic initiatives and cost-saving measures.

[Final Takeaway]
Campbell's Q3 2025 performance was mixed, with strong results in Meals & Beverages offset by challenges in the Snacks segment. The company is focused on strategic initiatives to drive growth and mitigate risks, including tariff impacts. While the Snacks segment faces headwinds, Campbell remains confident in its long-term growth potential and is taking steps to stabilize and improve performance.