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The Economic Times

Campbell’s cuts quarterly dividend by more than a third and flags profit, sales below estimates

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Campbell's reported a sharper-than-expected Q4 revenue decline and guided to below-consensus annual sales and profit, citing trade-down behavior among lower-income consumers and ongoing input/logistics inflation. The firm cut its quarterly dividend to prioritize debt reduction and outlined plant closures, workforce reductions, and a $500m cost-savings plan through 2030. The update reinforces a cautious view on U.S. staples demand elasticity and margin pressure.
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Campbell’s said fourth-quarter net sales fell more than expected and it issued a weaker-than-expected outlook for annual profit and sales. The company cut its quarterly dividend by more than a third to prioritize debt reduction and is targeting about $500 million in cost savings by fiscal 2030 after closing some plants and reducing headcount. With lower-income shoppers shifting to cheaper brands and store labels, Campbell’s has implemented average price increases of 4% to 5% across roughly 60% of its portfolio.