The Campbell’s Company (CPB) investor relations material

Executive summary

• Net sales declined 4% year-over-year to $2.37 billion, mainly due to lower volume/mix and divestitures, partially offset by favorable net price realization.

• Gross profit margin declined to 27.5% from 29.4%, impacted by tariffs, cost inflation, and supply chain costs, partially offset by productivity improvements and pricing.

• EPS increased to $0.41 from $0.22, while adjusted EPS dropped 32% to $0.50, mainly from lower adjusted EBIT.

• Recent developments include the acquisition of a 49% stake in La Regina and the completion of divestitures of Pop Secret and noosa yoghurt businesses.

• Management reaffirmed full-year fiscal 2026 guidance, focusing on cost savings and portfolio simplification to offset inflationary pressures.

Financial highlights

• Q3 FY26 net sales declined 4% year-over-year to $2.37 billion; organic net sales also down 4%.

• Adjusted EBIT dropped 24% to $274 million, with margin contracting to 11.6% from 14.6%.

• Adjusted EPS fell 32% to $0.50, reflecting lower EBIT and tariff impacts.

• Gross profit for the quarter was $650 million, with a margin of 27.5%; for the nine months, gross profit margin was 28.4%, down from 30.4% year-over-year.

• Net earnings attributable to shareholders were $124 million for the quarter, up from $66 million year-over-year.

Outlook and guidance

• Fiscal 2026 organic net sales expected to decline 2% to 1% year-over-year.

• Adjusted EBIT guidance: down 20% to 17% from prior year; adjusted EPS guidance: down 26% to 23%, range of $2.15 to $2.25.

• Elevated inflationary pressures, tariffs, and supply chain costs are expected to persist through 2026.

• Annual ongoing savings from cost initiatives are targeted at $375 million by the end of 2028, with $200 million achieved to date.

• Guidance excludes impact of 53rd week in fiscal 2025 and recent divestitures.