Campbell Soup Company Q2 FY2026 earnings call

• Snacks: Focus on maintaining Goldfish momentum, addressing Fresh Bakery execution challenges with cross-functional team and investments, taking surgical approach for Salty with promotional strategy and brand leaning. - Meals & Beverages: Emphasis on RAO’S growth and introduction of Campbell’s condensed sauces. - Capital allocation: Focus on debt reduction, no share buybacks, tight capex and working capital, $100M overhead cost reduction plan, La Regina acquisition cash flow considerations. - Marketing and resource allocation: Selective allocation between trade and marketing, supporting core brands like Goldfish and RAO’S, balancing spend between trade and marketing.

Snacks segment: Top-line includes Goldfish needing to maintain momentum, Fresh Bakery facing execution challenges with expected headwinds in Q3 and normalization in Q4, Salty facing heightened competitive intensity. Snack segment margin was 7% in Q2, down 390 basis points. For second half, Snacks margin expected to improve in Q3 with stabilization of bakery and better performance in Q4 due to lower marketing spend and Goldfish activity. Meals & Beverages: RAO’S showed positive results, condensed soups and broth have related performance with broth being a growing category but facing share pressure from private label.

• EPS cadence: Q3 similar to Q2, Q4 improvement to hit midpoint back half. - Snacks: Expected to be down about 4% in second half, margin improving in Q3 and better in Q4. - Bakery: Stabilization in Q4 leading to better margin. - Tariffs: Lapping of tariffs in Q4 reducing impact. - RAO’S: Full year high single digits growth expected.

• Oil price波动: Potential impact on cost structure, independent DSD operators' fuel costs indirectly affecting business. - Snack segment competition: Intense competition leading to share pressure. - Bakery execution: Continued risk of execution challenges. - Broth private label: Share pressure from private label affecting broth business.

Q: Focusing in on Snacks to start with. From a top-line standpoint, what are you seeing in the key areas here of Goldfish, Fresh, and Salty? And so what is the plan for progress in the back half? And I guess for Salty specifically, you called out heightened competitive intensity...

A: Mick Beekhuizen and Todd Comfer answered on Snacks top-line, Goldfish momentum, Fresh Bakery execution challenges and improvement plan, Salty's competitive intensity and strategies...

Q: Maybe to start off, I wanted to get a little more detail on the Fresh Bakery challenges...

A: Mick Beekhuizen answered on Fresh Bakery's manufacturing and distribution disruptions, cross-functional team and improvement progress...

Q: On capital allocation priorities...

A: Todd Comfer answered on cash flow importance, debt reduction, capital expenditure control, dividend, La Regina acquisition cash flow...

Q: On the Salty Snacks points...

A: Mick Beekhuizen answered on Salty's competitive approach, brand leaning, promotional strategy...

Q: On the Q3 to Q4 cadence and margin...

A: Todd Comfer answered on factors for Q4 margin improvement, Snacks stabilization, tariff lapping, marketing spend...

Q: On marketing spending shift to promo spend...

A: Todd Comfer and Mick Beekhuizen answered on marketing spend year over year up, selective allocation, support for core brands...

Q: On pricing approach...

A: Mick Beekhuizen and Todd Comfer answered on price pack architecture, promotional activity, selective list price adjustment...

Q: On Snacks recovery and normalized growth...

A: Mick Beekhuizen answered on Goldfish, Bakery, Salty segments' growth potential...

Q: On Goldfish capacity expansion...

A: Todd Comfer answered on capacity utilization impact and volume recovery need...

Q: On distribution for Snacks business and oil impact...

A: Mick Beekhuizen and Todd Comfer answered on Snacks distribution gains and losses, oil price impact on cost and hedging...

Q: On Snacks business long-term and Meals & Beverages...

A: Mick Beekhuizen answered on Snacks portfolio potential, Meals & Beverages' cooking behavior focus, condensed sauces and broth strategies...

Q: On Meals & Beverages back half pricing and consumption...

A: Todd Comfer and Mick Beekhuizen answered on second half pricing positive net realization, consumption pressure in second half.