Sovos sales surpass $1B as Campbell Soup acquisition looms

LOUISVILLE — In 2023, what is likely to be its last fiscal year before being absorbed by Campbell Soup Co. (NYSE: CPB), Louisville-based food-umbrella company Sovos Brands Inc. (Nasdaq: SOVO) surpassed the billion-dollar mark in sales.

The company posted $1.02 billion in revenue last year, up 16.2% from 2022.

Net income for the year was $30.2 million, an improvement over the loss of $53.5 million in fiscal 2022. 

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“Fiscal year 2023 was a landmark year for Sovos Brands,” Sovos CEO Todd Lachman said in a prepared statement. “Our team delivered sector-leading, volume-driven top and bottom-line growth, surpassing $1 billion of net sales and $150 million of adjusted EBITDA, expanded margins by nearly 200 basis points and improved net leverage to 1.6x. Notably, net sales growth was driven primarily by volumes in contrast to most of our peers.”

Net sales for the fourth quarter of 2023 were $292.1 million, up 11.4% year over year.

Sovo’s fourth quarter 2023 net income $15.5 million. The company posted losses of $28.7 million in the same period of 2022.

Campbell and Sovos expect the merger to occur in mid-March. 

Sovos, which moved to Colorado from California several years ago and controls Rao’s pasta sauce, Noosa Yoghurt and Michael Angelo’s frozen entrées, will be absorbed in a $2.7 billion deal that will fold Sovos’ brands into Campbell’s meals and beverages division.