Campbell's sees tariff hit in year ahead as economic uncertainty looms

"The maker of the Goldfish snack also plans to stop using artificial dyes by the second half of its 2026 fiscal year. Campbell's Co expects sales to fall in the coming year as tariff-driven economic uncertainty weighs on the food maker. In its fourth quarter earnings report released Wednesday, the New Jersey-based company said its sales will likely remain flat or decline by as much as 2 percent in the coming year."

"Campbell's, which is best known for its canned soup products, said that it expects that tariffs will account for about 4 percent of the cost of goods for the 2026 fiscal year which started August 4. The company says it plans to mitigate the cost with some price increases and other cost-saving measures as inflation weighs on how much consumers spend. Consumers continue to be increasingly deliberate in their food choices, CEO Mick Beekhuizen said."

"The company faces a dynamic operating and regulatory environment resulting in substantial input cost pressures, primarily driven by tariffs, which, despite significant mitigation efforts, reduce its earnings outlook for the upcoming fiscal year, Beekhuizen said. Campbell expects annual adjusted profit per share to fall up to 18 percent to between $2.40 and $2.55, including tariffs, and below the estimates of $2.63, according to data compiled by LSEG."

Campbell's plans to stop using artificial dyes in its Goldfish snack by the second half of fiscal 2026. Sales are expected to remain flat or decline by up to 2 percent in the coming year as tariff-driven economic uncertainty raises input costs. Tariffs are projected to account for roughly 4 percent of cost of goods for fiscal 2026. Management plans price increases and other cost-saving measures to mitigate the impact as inflation changes consumer spending. Annual adjusted profit per share is forecast to fall up to 18 percent to $2.40–$2.55, below estimates. Steel tariffs and a decline in domestic steel production are straining canned-food producers.

Read at www.aljazeera.com