Campbell Soup(US:CPB) Businesswire·2025-12-09 12:15Core Insights - The Campbell's Company reported a 3% decrease in net sales for the first quarter of fiscal 2026, totaling $2.7 billion, compared to the same period in fiscal 2025 [3][6][37] - The CEO highlighted the company's focus on quality, value, and innovation, while also addressing cost savings initiatives to mitigate inflation impacts [2][14] Financial Performance - Net sales decreased from $2.772 billion in Q1 fiscal 2025 to $2.677 billion in Q1 fiscal 2026, with organic net sales down 1% [3][6] - Earnings Before Interest and Taxes (EBIT) fell by 8% to $336 million, while adjusted EBIT decreased by 11% to $383 million [3][10] - Diluted earnings per share (EPS) decreased to $0.65 from $0.72, with adjusted EPS down 13% to $0.77 [3][12] Cost and Expense Management - Gross profit decreased to $792 million, with a gross profit margin of 29.6%, down from 31.3% [7] - Marketing and selling expenses increased by 1% to $253 million, while adjusted marketing and selling expenses decreased by 2% to $237 million [8] - Administrative expenses decreased by 5% to $167 million, with adjusted administrative expenses down 9% to $150 million [9] Segment Performance - Meals & Beverages segment net sales decreased by 4%, while Snacks segment net sales decreased by 2% [22][26] - Operating earnings for Meals & Beverages fell by 13%, and Snacks operating earnings decreased by 10% [22][27] Cash Flow and Shareholder Returns - Cash flow from operations was $224 million, slightly down from $225 million in the prior year [13] - The company paid $120 million in cash dividends and repurchased approximately $24 million in common stock during the quarter [13] Strategic Initiatives - The company achieved approximately $15 million in cost savings in the first quarter, totaling $160 million towards its fiscal 2028 target of $375 million [14] - Campbell's announced the acquisition of a 49% interest in La Regina for $286 million, expected to close in the second half of fiscal 2026 [15][16] Guidance - The company reaffirmed its full-year fiscal 2026 guidance, anticipating organic net sales to range from a decrease of 1% to an increase of 1% [17][19]