Campbell's reports weaker start to new financial year
By Josh White
Date: Tuesday 09 Dec 2025
(Sharecast News) - Campbell's reported a weaker start to the 2026 financial year on Tuesday, as falling sales volumes weighed on revenue and profitability, though the packaged foods group reaffirmed its full-year targets and highlighted progress on cost savings and brand investments.
Net sales for the first quarter to 2 November declined 3% to $2.7bn, or 1% on an organic basis, broadly matching the prior quarter's year-on-year revenue drop of 3.4%.
Adjusted earnings per share fell 13% to 77 cents, though that was slightly ahead of recent analyst forecasts of 73 cents.
Adjusted EBIT decreased 11% to $383m, while operating margin held broadly steady at 12.6%.
The soup giant said it continued to face pressure from weakening consumer demand, with sales volumes down 3% from a year earlier, compared with flat volumes in the same period last year.
Campbell's had maintained volumes in recent years by adjusting prices and discounting, a strategy that limited margin expansion.
Cash flow from operations reached $224m, and the group returned $144m to shareholders, including $120m in dividends.
Chief executive Mick Beekhuizen said the results were "in line with our expectations reflecting sharpened in-market execution in a dynamic operating environment," adding that "at-home-cooking trends continue to benefit our brands within our meals and beverages portfolio that deliver quality, convenience and value."
He acknowledged category softness in snacks but said the company was investing in innovation and brand support while working to offset inflation with savings initiatives.
Campbell's also moved to deepen its exposure in premium sauces, agreeing to acquire a 49% stake in La Regina, producer of Rao's tomato-based pasta sauces.
Management said the deal strengthened a long-term partnership, and was expected to support further growth for the Rao's brand.
Despite the softer top line, the company reiterated its full-year 2026 guidance, including an adjusted earnings per share target of $2.47 at the midpoint, indicating confidence that productivity gains, brand investments and strategic partnerships would bolster performance in the remainder of the year.
At 0937 ET (1437 GMT), shares in the Campbell's Company were up 0.2% in New York at $30.10.
Reporting by Josh White for Sharecast.com.
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