Campbell Soup Company Cuts Dividend and Announces $500M Cost-Saving Plan Amid Profit Decline
Campbell Soup Company (NYSE:CPB) reported a significant drop in fourth-quarter profitability, leading to a 36% reduction in its quarterly dividend. The company cited inflationary pressures and rising supply-chain costs as key factors behind the decline in adjusted earnings per share from $0.62 to $0.39 year-over-year. Revenue fell by 8%, with organic sales declining slightly at 1%. For fiscal 2026, Campbell's reported a 27% drop in adjusted EPS and a 5% revenue decrease. In response, the company announced an enterprise-wide cost-cutting initiative targeting $500 million in savings over five years. Looking ahead to fiscal 2027, Campbell expects further declines in net sales (by 2-4%) and adjusted EBIT (by 7-12%), with adjusted EPS projected between $1.65 and $1.80 — a drop of up to 24% year-over-year. CEO Mick Beekhuizen emphasized the need for decisive action, including cost reductions, brand investment, balance sheet strengthening, and dividend adjustments.
Tickers: $CPB
Topics: cost_savings_plan dividend_cut profitability_decline