Campbell's Cuts Dividend, Forecasts 2027 Profit And Sales Below Estimates

According to CNBC, Campbell Soup cut its quarterly dividend by more than a third and forecast annual profit and sales below estimates as it faces soft demand for its pricier snacks. The company said it closed some plants and completed workforce cuts as part of a program to save about $500 million in costs by fiscal 2030. Shares fell about 7% in early trading. CEO Mick Beekhuizen said the company’s results remain unacceptable and that it will address the situation directly. Campbell Soup also plans to adjust prices in some categories to reflect changes in commodity costs. CFO Todd Cunfer said on a call with analysts that the company had implemented average price increases of 4% to 5% across roughly 60% of its portfolio, with benefits expected to begin flowing through in the second quarter. Campbell Soup expects fiscal 2027 net sales to fall between 2% and 4%, compared with analysts’ estimate of a 0.8% drop, according to data compiled by LSEG. It expects fiscal 2027 adjusted profit per share of $1.65 to $1.80, versus estimates of $1.86 per share. Net sales fell 8% to $2.14 billion in the fourth quarter, slightly below analysts’ average estimate of $2.15 billion, while adjusted earnings per share of 39 cents matched expectations.