Recasts lede, updates shares in paragraph 2, adds CEO comment in paragraphs 4, 5
By Neil J Kanatt and Koyena Das
Dec 9 (Reuters) - Campbell's Co CPB.O maintained its annual sales and profit forecasts even as it beat expectations for first-quarter profit on Tuesday, signaling shoppers remain cautious of higher prices for snacks, soups and condiments.
Shares of the Goldfish crackers maker, which have fallen around 28% this year, were down 6.2% in afternoon trading.
Packaged food makers such as Campbell's, Kraft Heinz KHC.N and General Mills GIS.N have raised prices to offset higher costs of raw materials, driven largely by steel and aluminum used in cans, pushing price-sensitive shoppers toward cheaper private-label brands.
Campbell's CEO Mick Beekhuizen told analysts on a post-earnings call that recent price hikes were needed to offset tariff-driven inflation.
"However, we are conscious of the importance of providing appropriate value in the marketplace, particularly during the critical soup season," he said.
Overall volumes for the company, including its meals and beverages segment as well as snacks segment, fell 3% in the quarter.
Campbell's first-quarter results highlight what remains a challenging backdrop for food companies, Consumer Edge analyst Connor Rattigan said, citing organic volume pressure.
"Consumers remain intentional in their shopping behaviors with at-home cooking trends continuing to benefit our brands," Beekhuizen said.
Campbell's continues to see fiscal 2026 net sales remaining flat or falling as much as 2%, and its annual adjusted profit being between $2.40 and $2.55 per share.
Net sales for the quarter ended November 2 fell about 3% to $2.68 billion, largely in line with analysts' average estimates of $2.66 billion, according to data compiled by LSEG, while adjusted earnings per share of 77 cents beat estimates 73 cents.
Campbell's also 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 acquisition is expected to close in the second half of fiscal 2026.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli and Alan Barona)
((koyena.das@thomsonreuters.com))