The Campbell's Company reported a decrease in net sales for the first quarter of fiscal 2026, totaling $2.677 billion, down 3% from $2.772 billion in the same period last year. The decline was attributed to unfavorable volume and mix, as well as the impact of divestitures, particularly the sale of the noosa yoghurt and Pop Secret popcorn businesses. Despite these challenges, the company experienced favorable net price realization, which partially offset the negative effects on sales. Net earnings attributable to Campbell's Company were $194 million, or $0.65 per share, compared to $218 million, or $0.72 per share, in the prior year.
In terms of operational performance, the company's gross profit margin decreased to 29.6% from 31.3% year-over-year, primarily due to cost inflation, supply chain pressures, and the impact of tariffs. The company recorded restructuring charges of $3 million and implementation costs of $8 million related to ongoing cost savings initiatives. Segment operating earnings also saw a decline, with Meals & Beverages down 13% to $297 million and Snacks down 10% to $123 million, reflecting lower gross profit margins and the effects of divestitures.
The company has been actively pursuing strategic initiatives to optimize its operations. In December 2025, Campbell's announced plans to acquire a 49% stake in La Regina di San Marzano di Antonio Romano S.p.A. for $286 million, which is expected to enhance its product offerings in the pasta sauce category. Additionally, Campbell's has been implementing cost savings initiatives aimed at generating annual savings of approximately $375 million by the end of 2028, with total program-to-date pre-tax savings of $160 million as of November 2, 2025.
On the operational front, Campbell's reported a negative working capital of $567 million, reflecting a focus on reducing core working capital requirements. The company generated cash flows from operations of $224 million, slightly down from $225 million in the previous year. Capital expenditures increased to $127 million from $110 million, primarily for network optimization and information technology projects. The company also maintained a strong liquidity position, with $168 million in cash and cash equivalents as of November 2, 2025.
Looking ahead, Campbell's anticipates continued challenges from commodity cost volatility and evolving consumer purchasing patterns. The company expects to leverage its cost savings initiatives and supply chain productivity improvements to mitigate some of these pressures. However, it acknowledges that shifting consumer behaviors may continue to impact volumes throughout fiscal 2026. The company remains committed to evaluating the macroeconomic environment and adapting its strategies accordingly to sustain its financial performance.
About CAMPBELL'S Co
The Campbell's Company is a manufacturer and marketer of branded food and beverage products, including soups, broths, sauces, snacks, and beverages. Its key brands include Campbell's, Pepperidge Farm, Prego, Pace, V8, and Goldfish. Serving primarily North American retail and foodservice markets, the company leverages strong brand recognition, diverse product offerings, and extensive distribution networks to deliver convenient, high-quality food products to consumers.
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