Q1 2026 Campbell's Co Earnings Call Transcript
Key Points
- The Campbell's Co (CPB) maintained stable share performance for its leadership brands, marking the ninth consecutive quarter of holding or growing share in the Meals and Beverages division.
- The company has made significant progress on cost savings initiatives, achieving $15 million in new savings towards its fiscal 2028 target of $375 million.
- Rao's sauces continue to perform well, with consumption and share growth, and the company has entered into agreements to acquire a 49% interest in La Regina, solidifying its strategic partnership.
- The Snacks division saw solid performance in Pepperidge Farm cookies and Snack Factory, with successful innovation launches contributing to growth.
- The Campbell's Co (CPB) reaffirmed its fiscal 2026 guidance, indicating confidence in its strategic initiatives and ability to navigate current challenges.
- Organic net sales decreased by 1%, driven by a 2% decline in consumption, with the Snacks business under pressure as consumers become more intentional with their purchases.
- Adjusted EBIT decreased by 11% year-over-year, primarily due to cost increases and top-line headwinds, resulting in a decrease in adjusted EBIT margin.
- The company experienced a 150 basis point decrease in adjusted gross profit margin, driven by cost headwinds including cost inflation and tariffs.
- The Snacks division faced challenges with Snyder's of Hanover pretzels and Cape Cod potato chips, which experienced share and consumption pressure.
- The ready-to-serve soup segment continued to face headwinds, with market share declines due to select price increases and the discontinuation of the Well Yes! brand.
Good morning, and welcome to The Campbell's Company first quarter fiscal 2026 earnings conference call. Today's conference is being recorded. (Operator Instructions) I would now like to turn the call over to Rebecca Gardy, Chief Investor Relations Officer at Campbell's. Please go ahead.
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Good morning, and welcome to The Campbell's Company first quarter fiscal 2026 earnings conference call. I'm Rebecca Gardy, Campbell's Chief Investor Relations Officer. Joining me today are Mick Beekhuizen, Chief Executive Officer; and our new Financial Officer, Todd Cunfer.
Today's remarks have been prerecorded. After the prepared remarks, we will transition to a live webcast Q&A. The presentation, a transcript of management's prepared remarks, and today's earnings press release are available on our website at thecampbellscompany.com in the Investors section. A replay of the webcast will be posted at the same location following the Q&A
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