Can Campbell's Snacks Business Stabilize After a Gradual Recovery in 2H25?

Core Insights - The Campbell's Company's snacks business ended fiscal 2025 with mixed results, indicating early signs of improvement but still facing challenges, raising concerns about stabilization plans for fiscal 2026 [1][9] Sales Performance - In Q4 of fiscal 2025, reported net sales for the snacks segment increased by 2%, while organic net sales decreased by 2% after adjustments for an extra week and divestitures, reflecting a 5% drop in volume and mix, partially offset by a 2% gain from net pricing [2] Brand Performance - Five out of eight leading snack brands gained market share in Q4, with four brands experiencing dollar consumption growth compared to the previous quarter, driven by innovation such as the Milano White Chocolate limited-edition cookie, which boosted consumption by 27% [3][9] Strategic Initiatives - The company plans to sustain momentum by increasing brand investment, enhancing packaging, and optimizing price-pack structures for multipacks, with a focus on stronger in-market execution and wider distribution for fiscal 2026 [4] Profitability Challenges - The operating margin for the snacks segment decreased by 30 basis points year-over-year to 14.2% in Q4, as increased marketing and selling expenses outweighed gross profit gains [5] Recovery Outlook - The snacks portfolio shows a path toward gradual recovery, with success dependent on execution in innovation speed, retail activation, and disciplined cost control, as the company has seen its shares rise by 1.2% over the past three months compared to a 3.3% decline in the industry [6]