CAMDEN (dpa-AFX) - Food and beverages maker Campbell's Co. (CPB) reported Thursday a net loss for the fourth quarter compared to a profit last year, hurt by lower net sales and inflation-driven margin headwinds. The company also provided weak adjusted earnings, net sales and organic net sales growth guidance for the full-year 2027.
Further, the company's Board of Directors reset the dividend to accelerate debt reduction and approved a 36 percent lower quarterly dividend.
In Thursday's pre-market trading, CPB is trading on the Nasdaq at $22.26, down $1.52 or 6.39 percent.
'Our performance is not where it needs to be, and we are taking decisive action to improve it. We are increasing our focus on the consumer, sharpening execution, reducing costs to support investment in our brands, and strengthening our balance sheet, including resetting our dividend,' said Mick Beekhuizen, President and CEO.
The company noted that The La Regina acquisition was completed on May 4, 2026, and as such, La Regina's financials are fully consolidated into Campbell's results.
For the fourth quarter, the company reported a net loss attributable to common shareholders of $69 million or $0.23 per share, compared to net earnings of $145 million or $0.48 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $0.39 per share, compared to $0.62 per share in the year-ago quarter.
Net sale for the quarter declined 8 percent to $2.14 billion from $2.32 billion in the same quarter last year. Organic net sales were down 1 percent, driven primarily by lower volume/mix.
The company added that the additional week in the prior fiscal year's fourth quarter was an estimated 7 percent impact to net sales and adjusted earnings per share ($0.06 per share).
Meals & Beverages net sales decreased 4 percent, with organic net sales increasing 3 percent, driven by favorable volume/mix of 3 percent.
Meanwhile, Snacks net sales decreased 12 percent, with organic net sales decreasing 6 percent, primarily driven by unfavorable volume/mix of 6 percent.
Gross profit margin decreased 310 basis points to 27.3 percent, driven primarily by cost inflation and other supply chain costs inclusive of the impact from tariffs, partially offset by supply chain productivity improvements.
Looking ahead to for fiscal 2027, the company now projects adjusted earnings in a range of $1.65 to $1.80 per share on net sales and organic net sales decline of 4 to 2 percent.
The company said the outlook reflects an external environment which it expects will remain volatile, another year of elevated inflation, and several longer-term benefits that are expected to build through the year to increasingly support the company's margins.
To help accelerate the path to reducing debt on the company's balance sheet, the company announced that its Board of Directors approved a 36 percent lower quarterly dividend payment of $0.25 per share, or $1.00 on an annualized basis.
The quarterly dividend is payable on November 2, 2026 to shareholders of record at the close of business on October 1, 2026.
Beginning in fiscal 2027, Campbell's is launching a new program targeting total cost savings of $500 million by fiscal 2030 to further protect margins and support higher investment levels. Several actions are already underway, including plant closures and recently completed workforce reductions.
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