Campbell to Outline Progress on Strengthening Core Businesses and Expanding into Higher Growth Spaces
July 24 2013 - 7:30AM
Business Wire
Campbell Soup Company (NYSE:CPB) will discuss its growth
strategies and provide an update on plans for fiscal 2014 at a
meeting with investors today led by President and Chief Executive
Officer Denise Morrison.
Morrison and other members of Campbell’s management team,
including Mark Alexander, President - Campbell North America; Jeff
Dunn, President - Bolthouse Farms; Irene Chang Britt, SVP - Global
Baking and Snacking and President - Pepperidge Farm; Luca Mignini,
President - Campbell International; and Craig Owens, SVP, Chief
Financial Officer and Chief Administrative Officer, will outline
the company’s plans to continue to implement its key growth
strategies in its upcoming fiscal year. Those strategies focus on
profitably growing the company’s soup and simple meals business in
North America, expanding its international presence and continuing
to drive growth in snacks and healthy beverages.
Morrison said, “We are executing against a dual mandate to
strengthen our core businesses and expand into higher growth
spaces. We have had striking movement in both prongs of this
mandate during this fiscal year. We've made good progress in
strengthening our core businesses, led by impressive advances in
U.S. Soup. We are clear-eyed about our need to address some
continuing challenges, particularly in U.S. Beverages. Our
expansion into higher growth spaces is being propelled by
innovation and external development transactions that represent
very bold and deliberate moves for Campbell.”
Reiterates Fiscal 2013 Guidance
Campbell continues to expect sales growth at the upper end of
the 10- to 12-percent range and adjusted EBIT growth at the upper
end of the 4- to 6-percent range. Adjusted EPS, benefiting
from a favorable tax rate and EBIT improvement, is expected to grow
between 6 and 7 percent, putting adjusted EPS in the range of $2.58
to $2.62. This guidance includes the estimated impact of the
Bolthouse Farms business and excludes the impact of acquisition
transaction costs and restructuring charges. In fiscal 2013,
Campbell continues to expect Bolthouse Farms to contribute
approximately $750 million to sales and add approximately $0.06 to
adjusted EPS, including the impact of the suspension of Campbell’s
strategic share repurchase program. A detailed reconciliation of
adjusted financial information to the reported information is
included at the end of this news release.
Key Drivers in Fiscal 2014
Campbell plans to provide fiscal 2014 guidance when it reports
fourth-quarter results on Aug. 29, 2013.
Owens said, “We see opportunities to continue to accelerate our
performance next year. In fiscal 2014, we expect an
improvement in the rate of organic sales and EBIT growth. We
foresee solid performance in U.S. Simple Meals, led by the launch
of new products and line extensions, growth in premium soups,
increased breakthrough innovation and better availability for many
of our products. Organic sales will also benefit from strong growth
in the Bolthouse Farms portfolio. Our guidance for fiscal 2014 will
include the impact of recent acquisitions, one of which has not yet
closed. Fiscal 2014 also will be affected by significant currency
movements and a 53rd week in the fourth quarter. Additionally, we
will be cycling an unusually low tax rate from fiscal 2013. We will
provide details on fiscal 2014 when we report our fourth-quarter
results next month.”
A webcast of the meeting will be available at
investor.campbellsoupcompany.com beginning at 9:00 a.m. Eastern
Daylight Time today.
About Campbell Soup Company
Campbell Soup Company is a manufacturer and marketer of
high-quality foods and simple meals, including soup and sauces,
snacks and healthy beverages. Founded in 1869, the company has a
portfolio of market-leading brands, including “Campbell’s,”
“Pepperidge Farm,” “Arnott’s,” “V8,” “Bolthouse Farms” and “Plum
Organics.” Through its corporate social responsibility program, the
company strives to make a positive impact in the workplace, in the
marketplace and in the communities in which it operates. Campbell
is a member of the Standard & Poor's 500 and the Dow Jones
Sustainability Indexes. For more information, visit
www.campbellsoupcompany.com or follow company news on Twitter via
@CampbellSoupCo.
Cautionary Note Regarding Forward-looking Statements
This release contains “forward-looking statements” that reflect
the company’s current expectations about the impact of its future
plans and performance on sales, earnings and margins. These
forward-looking statements rely on a number of assumptions and
estimates that could be inaccurate and which are subject to risks
and uncertainties. The factors that could cause the company’s
actual results to vary materially from those anticipated or
expressed in any forward-looking statement include (1) the impact
of strong competitive responses to the company’s efforts to
leverage its brand power in the market; (2) the impact of changes
in consumer demand for the company’s products; (3) the risks
associated with trade and consumer acceptance of the company’s
initiatives; (4) the company’s ability to realize projected cost
savings and benefits; (5) the company’s ability to manage changes
to its business processes; (6) the practices and increased
significance of certain of the company’s key trade customers; (7)
the impact of fluctuations in the supply or costs of energy and raw
and packaging materials; (8) the impact of portfolio changes,
including the Plum Organics acquisition and the expected Kelsen
Group acquisition; (9) the uncertainties of litigation; (10) the
impact of changes in currency exchange rates, tax rates, interest
rates, debt and equity markets, inflation rates, economic
conditions and other external factors; (11) the impact of
unforeseen business disruptions in one or more of the company’s
markets due to political instability, civil disobedience, armed
hostilities, natural disasters or other calamities; and (12) other
factors described in the company’s most recent Form 10-K and
subsequent Securities and Exchange Commission filings. The company
disclaims any obligation or intent to update the forward-looking
statements in order to reflect events or circumstances after the
date of this release.
Reconciliation of GAAP and Non-GAAP Financial Measures Fiscal
Year Ended July 29, 2012
Campbell Soup Company uses certain non-GAAP financial measures
as defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted
in the United States and should be considered in addition to, not
in lieu of, GAAP reported measures.
The company believes that financial information excluding
certain transactions not considered to be part of the ongoing
business improves the comparability of year-to-year results.
Consequently, the company believes that investors may be able to
better understand its earnings results if these transactions are
excluded from the results.
Adjusted
Earnings
Year Ended
2012 Restructuring Transaction (dollars in
millions)
As Reported Charges (1)
Costs (2) Adjusted Net earnings
attributable to Campbell Soup Company $ 774 $ 6 $ 3 $ 783 Add: Net
earnings (loss) attributable to noncontrolling interests (10 ) - -
(10 ) Add: Interest, net 106 - - 106 Add: Taxes on earnings
342 4 2 348
Earnings before interest and taxes $
1,212 $ 10 $
5 $ 1,227
Adjusted Diluted
Net Earnings Per Share
2012 Diluted net earnings
per share, as reported $ 2.41 Add: Restructuring charges (1) 0.02
Add: Acquisition transaction costs (2)
0.01
Adjusted Diluted net earnings per share
$
2.44
(1) In fiscal 2011, the company announced a series of
initiatives to improve supply chain efficiency and reduce overhead
costs across the organization to help fund plans to drive the
growth of the business. The company also announced its intent to
close its office in Moscow and exit the Russian market. In fiscal
2012, the company recorded pre-tax restructuring charges of $10
million ($6 million after tax or $.02 per share) related to the
initiatives.
(2) In the fourth quarter of fiscal 2012, the company announced
its intent to acquire Bolthouse Farms. The company incurred
transaction costs of $5 million ($3 million after tax or $.01 per
share) associated with the acquisition, which closed on August 6,
2012.
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