By Neil J Kanatt and Koyena Das
Dec 9 (Reuters) – Campbell’s Co beat expectations for first-quarter results on Tuesday, as the packaged-food maker benefitted from price hikes and steady demand for its sauces and condiments.
Persistent inflation and tariff-related volatility have led to shoppers stocking up on pantry staples to cook meals rather than splurging on dining out.
“Consumers remain intentional in their shopping behaviors with at-home-cooking trends continuing to benefit our brands,” CEO Mick Beekhuizen said.
Campbell’s has selectively raised prices to counter higher raw material costs related to tariffs, even as it risks losing consumers to lower-priced alternatives.
The company’s first-quarter results highlight what remains a challenging backdrop for food companies, Consumer Edge analyst Connor Rattigan said.
Despite a quarterly beat, Campbell’s maintained it fiscal 2026 net sales to remain flat or fall as much as 2%, and its annual adjusted profit forecast at $2.40 and $2.55 per share.
Shares of the Goldfish cracker maker were down 2% in early trading.
Peer Kraft Heinz has also cut its annual forecasts, while General Mills has maintained its annual guidance.
Campbell’s separately announced it will acquire 49% of the privately held Rao’s sauces partner, La Regina SPA, for $286 million. This comes a year after it bought Rao’s Homemade’s owner, Sovos Brands, for $2.33 billion.
The latest stake acquisition is expected to close in the second half of fiscal 2026.
Net sales for the first quarter ended November 2 fell about 3% to $2.68 billion, narrowly beating analysts’ average estimates of $2.66 billion, according to data compiled by LSEG.
On an adjusted basis, the company earned 77 cents per share, compared with analysts’ average estimate of 73 cents.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli)
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