Campbell Soup Co. to Sell Noosa Yoghurt Business to Lakeview Farms

Campbell Soup Co. has announced the sale of its noosa yoghurt business to Lakeview Farms, a decision that is not expected to significantly impact its finances. The deal, set to close in early 2025, is projected to slightly dilute the company's earnings per share.

Date: 13-11-2024

AI Rating: 6

Campbell Soup Company (CPB) has entered an agreement to sell its noosa yoghurt business to Lakeview Farms. The noosa business generated net sales of $177 million over the past year, indicating it was a sizable segment of Campbell's operations. However, the company has stated that this divestiture is not expected to have a material impact on its financial results for fiscal 2025.

Despite the potential loss of revenue from the sale, the primary concern for investors will be the projected impact of this transaction on earnings per share (EPS). It is estimated that the sale will be dilutive to EPS by approximately $0.01 in fiscal 2025. This suggests that while the transaction could reduce the per-share earnings slightly, the overall impact is not severe.

The anticipated closing of the transaction in the first quarter of calendar year 2025 allows the market to remain informed about Campbell's financial health moving forward. The sale could be viewed positively if the company utilizes the proceeds to invest in more profitable areas or to reduce debt.

Stocks: CPB