Campbell’s Falls Short of Expectations, Names New CEO Amid Diversification Efforts
Campbell’s, a legacy packaged food company, reported quarterly net sales that fell short of market expectations on Tuesday. The company also announced the appointment of Mick Beekhuizen as its new CEO, effective February 1, 2025. Beekhuizen will succeed Mark Clouse, who is retiring after a six-year stint as CEO to become President of the NFL’s Washington Commanders.
Campbell’s reaffirmed its annual target of 9% to 11% net sales growth and 1% to 4% adjusted profit per share growth, citing the need to balance expected sequential progress with pragmatism in the face of uneven consumer demand for packaged goods.
The company has faced stiff competition in recent years from more affordable private-label brands, and has responded by focusing on a more diverse range of packaged food products. Campbell’s has identified 16 top brands across its meals & beverages and snacking divisions, including Goldfish, V8 beverages, and Prego sauces, which it will prioritize.
Campbell’s first-quarter net sales rose to $2.77 billion, slightly below the $2.80 billion expected by analysts. However, the company’s adjusted earnings per share of 89 cents topped estimates of 87 cents, thanks to cost-savings efforts and supply chain improvements.
The company’s current holiday quarter will be an important indicator of progress, according to Clouse. Beekhuizen, who has been with Campbell’s since 2019, previously served as its CFO and president of the meals and beverages division. He oversaw the company’s $2.7 billion acquisition of Sovos Brands, the maker of Rao’s sauces.