Campbell’s rules out 2026 sales growth as outlook lowered

Core Insights - Campbell's Company has lowered its full-year sales and profit outlook due to underperformance in snacks and adverse weather conditions [1][4] - The company reported a decline in organic sales across its product categories, particularly in snacks, which saw a more significant drop than the overall group business [1][2] Sales Performance - Group organic sales fell by 3% in the three months ending 1 February, with reported sales down 5% to $2.56 billion [2] - Snack sales decreased by 6% in organic terms, amounting to $914 million, while meals and beverages saw a 2% decline to $1.65 billion [2][5] Financial Outlook - Campbell's now expects adjusted EBIT to decline by 17% to 20% for the year, a significant revision from the previous forecast of a 9% to 13% decline [3] - Adjusted EPS is projected to decrease by 23% to 26%, revised to a range of $2.15 to $2.25, compared to the earlier estimate of a 12% to 18% drop [3] Management Commentary - CEO Mick Beekhuizen acknowledged that the results "fell short of expectations" and emphasized the need for decisive actions to stabilize the snacks segment [3][4] - The company is focusing on enhancing value, innovating new products, and executing in the market while accelerating cost-saving initiatives [4] Volume and Mix Analysis - The overall volume/mix declined by 4%, with snacks experiencing a 6% drop and meals and beverages down by 2% [5] - The decline in snack sales was attributed to issues with crisps and pretzels, as well as supply constraints related to fresh bakery products and third-party brands [5][6] Category Performance - Meals and beverages showed a better organic sales performance when excluding the disposal of the Noosa yogurt business, but still reported a 2% decline, primarily driven by soup, Prego pasta sauces, foodservice, and V8 beverages [6]