Campbell's has lowered its annual sales and profit forecasts, signalling weak demand for snacks amid intense competition from cheaper private-label brands.
The company now expects fiscal 2025 net sales to rise between 6% and 8%, compared with its previous forecast range of 9% to 11% growth.
The revised forecast does not reflect any impact from the potential import tariffs by the US government and potential retaliatory tariffs taken by other countries, Campbell's said.
“Given the softness in some of our snacking categories, the anticipated sequential top line improvement did not materialise during the quarter, and now we have a more muted second half expectation,” Campbell’s president and CEO, Mick Beekhuizen, said in a statement.
Indications from recent economic data such as retail sales and consumer confidence have sparked worries of a slowing economy.
Campbell's lowered its adjusted profit per share forecast to between $2.95 and $3.05, from prior expectations of $3.12 to $3.22.
Quarterly Highlights
For the quarter ended 26 January, the company's net sales rose 9% to $2.69 billion (€2.51 billion), compared with the average analyst estimate of $2.74 billion (€2.6 billion), according to data compiled by LSEG.
On an adjusted basis, Campbell's earned 74 cents per share, compared with estimates of 72 cents.
EBIT for the quarter amounted to $327 million (€305.4 million), while adjusted EBIT increased 2% to $372 million (€347.5 million), including the impact of the Sovos Brands, Inc. acquisition.
Mick Beekhuizen, Campbell’s president and CEO, added “We remain confident in our ability to successfully navigate the current consumer landscape with our portfolio of advantaged leadership brands, talented team and track record of execution. We have a strong foundation to deliver long-term sustainable, profitable growth and shareholder returns.”
News by Reuters, additional reporting by ESM.
