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Campbell Posts Profit Beat as Q3 Sales Fall 4%

Management says cost cuts, supply-chain gains plus strong Rao’s sales will support the trimmed annual forecast.

Cans of Campbell's chunky beef soup line a supermarket shelf in Bellingham, Washington, U.S. April 25, 2024. REUTERS/Chris Helgren/File Photo

Overview

  • Campbell reported fiscal third-quarter results on Monday showing net sales fell 4% to $2.37 billion while adjusted earnings per share beat at $0.50.
  • Net income rose to $124 million from $66 million a year earlier, a gain management credited to supply-chain optimization and its cost‑savings program.
  • The Snacks business remained a persistent weakness, with roughly 4% revenue declines across salty snacks, crackers and fresh bakery that have depressed volumes for several quarters.
  • The company reaffirmed its full-year fiscal 2026 outlook calling for organic sales down 1%–2% and adjusted EPS of $2.15–$2.25 and said it will lean on productivity and targeted brand investment.
  • Campbell faces continued headwinds from tariffs, higher logistics costs tied to the Middle East conflict and elevated debt from the Sovos deal even as Rao’s topped $1 billion in trailing sales, a factor that will influence near-term investment and financing choices.