June 8 (Reuters) – Packaged food maker Campbell’s Co stuck to its annual outlook on Monday, months after trimming the forecast, as cautious U.S. consumer spending continued to weigh on demand.
Consumer sentiment sank to record lows in recent months as rising gasoline prices linked to the Iran war have squeezed household budgets already strained by stubborn inflation.Â
The pressure is driving lower-income consumers toward cheaper and private-label brands, weighing on demand for companies such as Campbell’s that raised prices to shore up margins and offset rising commodity and tariff costs.
Still, shares of the Goldfish cracker maker rose 1.5% in premarket trading after it beat quarterly profit estimates.
On an adjusted basis, Campbell’s earned 50 cents per share during the third quarter, beating analysts’ average estimate of 48 cents, according to data compiled by LSEG. That was mainly aided by supply-chain optimization and benefits from its cost-savings program.
The company said it has achieved about $200 million of its FY28 cost-savings target of $375 million.
“We are focused on simplifying the business, accelerating productivity and cost-savings,” CEO Mick Beekhuizen said.
Its quarterly net sales fell, however, 4% to $2.37 billion, slightly below analysts’ estimate.
The packaged foods industry is evolving to cope with a change in dietary preferences toward healthier foods, accelerated by the fast adoption of weight-loss drugs.
Quarterly sales at Campbell’s meals and beverages unit fell 2%, compared to a 15% increase a year ago. Its snacks business posted a 7% fall, against an 8% decline a year earlier.
The company expects fiscal 2026 organic net sales to fall between 1% and 2%, and adjusted profit per share in the range of $2.15 to $2.25.
Separately, Campbell’s is set to drop out of the S&P 500 index before the start of trading on June 22.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
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