The Campbell's Company reported fourth quarter fiscal 2026 results that missed analyst expectations on both the top and bottom lines, primarily due to volume softness in the Snacks segment and inflationary headwinds. Net sales declined 8% to $2.14 billion, while organic net sales fell 1%. In a significant move to accelerate debt reduction, the company slashed its quarterly dividend and introduced a new $500 million cost-savings program through fiscal 2030.
Key Highlights
- Dividend Cut: The Board approved a quarterly dividend of $0.25 per share, a 36% reduction from the previous $0.39 payout, to prioritize balance sheet strengthening.
- Weak 2027 Outlook: Management issued fiscal 2027 adjusted EPS guidance of $1.65 to $1.80, representing a significant decline from the $2.17 earned in fiscal 2026.
- Snacks Segment Pressure: Organic net sales in the Snacks division fell 6% during the quarter, driven by volume/mix declines in the salty portfolio and partner brands.
- Asset Impairments: The company recognized non-cash impairment charges of $117 million related to the Kettle Brand and Cape Cod trademarks.