Campbell’s Q3 Sales Down 4% as EPS Drops 32%, Unveils Cost Cuts
KHC•In Campbell’s third-quarter, organic sales fell 4%, adjusted EBIT dropped 24%, and adjusted EPS declined 32% to $0.50 year-over-year. Management has delivered $200 million in savings toward a $375 million multi-year target, plans $100 million in overhead cuts, and will launch condensed sauces this summer.
1. Q3 Financial Results
The company reported a 4% drop in organic sales, a 24% decline in adjusted EBIT, and a 32% decrease in adjusted EPS to $0.50 compared with the year-ago quarter.
2. Business Segments Performance
Soup consumption slipped 4.4% and salty snack sales fell 6.2%, with Meals & Beverages making up 62% of revenue and Snacks accounting for 38%.
3. Cost-Cutting Initiatives
Management booked $200 million in savings against a $375 million multi-year target and plans an additional $100 million in overhead reductions to alleviate margin pressure.
4. Growth Strategies
The company will launch condensed sauces this summer to tap into at-home cooking trends and is refocusing Goldfish snacks on families after consumption remained flat.
