Campbell's reported fiscal fourth quarter earnings that sent shares down 6.9% on September 3rd, with revenue falling 8% annually and earnings merely meeting analyst estimates. Management cut the dividend by 36% to $0.25 per share, ending a 56 year streak of dividend payments, and warned that the business could decline in the high single digit percentages in the fiscal first quarter. The snack business was a key source of weakness, with dollar consumption down 5.1%, organic sales down 6%, and operating earnings down 34%, while gross margin fell 190 basis points to 28.6% and management guided a further 50 to 100 basis point reduction for the current fiscal year. Management outlined a $500 million cost savings program intended to impact the entire business by fiscal year 2030, with as much as $100 million in savings expected in FY27, and the company raised prices by 4% to 5% across 60% of its portfolio, with the impact expected by the second fiscal quarter. Jim Cramer called the situation a nightmare, saying the quarter was bad and the snack and soup businesses were struggling.
Campbell’s CoCampbell's cut its dividend 36% and reported weak Q4 earnings with revenue down 8% and margin contraction.
Merck & Company Inc