Campbell's Cuts Dividend 36% to $0.25 as Quarterly Sales Fall 8%
Updated
Updated · Yahoo Finance · Sep 3
Campbell's Cuts Dividend 36% to $0.25 as Quarterly Sales Fall 8%
3 articles · Updated · Yahoo Finance · Sep 3
Summary
Campbell's shares fell 6% after the food maker cut its quarterly dividend to $0.25 a share, saying the reset will speed debt reduction and shore up its balance sheet.
Fiscal fourth-quarter results showed why: net sales dropped 8% to $2.1 billion, adjusted EPS sank 37% to $0.39, and gross margin narrowed 310 basis points to 27.3%.
CEO Mick Beekhuizen blamed top-line softness and inflation-driven margin pressure, with higher agricultural commodity costs still squeezing food manufacturers.
Campbell's is also widening cost cuts, launching a program in fiscal 2027 aimed at $500 million in savings by fiscal 2030; the stock is down about 15% this year.