Packaged food firm Campbell's reaffirms annual forecast on weak consumer spending

June 8 (Reuters) - Packaged foods maker Campbell's Co stuck to its annual outlook on Monday, months after trimming its forecast, as cautious U.S. consumer spending continued to weigh on demand.

Consumer sentiment sank to record lows in recent months as rising gasoline prices linked to the Iran war have squeezed household budgets already strained by stubborn inflation.

The pressure is driving lower-income consumers toward cheaper and private-label brands, weighing on demand for companies such as Campbell's that raised prices to shore up margins and offset rising commodity and tariff costs.

Campbell's net sales fell 4% to $2.37 billion during the third quarter, compared with analysts' average estimate of $2.38 billion, according to data compiled by LSEG.

On an adjusted basis, it earned 50 cents per share, beating the estimate of 48 cents, helped by supply-chain optimization and benefits from its cost-savings program.

The packaged foods industry is also evolving to cope with a change in dietary preferences toward healthier foods, accelerated by the fast adoption of weight-loss drugs.

Quarterly sales at Campbell's meals and beverages unit fell 4%, compared to a 15% increase a year ago. Its snacks business posted a 4% fall, against an 8% decline a year earlier.

The company expects fiscal 2026 organic net sales to fall between 1% and 2%, and adjusted profit per share in the range of $2.15 to $2.25. (Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)