CAMDEN, N.J.--(BUSINESS WIRE)--Campbell Soup Company (NYSE:CPB) will outline its progress on its growth strategies and its plans to return to growth in fiscal 2013 at a meeting with investors led by President and Chief Executive Officer Denise Morrison. A web cast of the presentation will be available at investor.campbellsoupcompany.com beginning at 9:00 a.m. Eastern Daylight Time today.
Morrison said, “We’ve made progress in this fiscal year, and we will continue to advance our core strategies for growth in fiscal 2013. Our strategic framework is a roadmap to drive smart, meaningful and successful change at Campbell. We will tend very carefully to our core business, while we shift our center of gravity toward new consumer groups, new consumer needs, new consumer platforms and new geographies.”
Campbell’s three growth strategies focus on:
- Stabilizing and then profitably growing its North America soup and simple meals business;
- Expanding its international presence, particularly in emerging markets; and
- Continuing to grow its healthy beverages and baked snacks businesses.
Morrison and other members of Campbell’s management team will outline plans to continue to implement these strategies in the upcoming fiscal year.
U.S. Simple Meals
Mark Alexander, President Campbell North America, will outline plans to stabilize and profitably grow North America soup and simple meals by leveraging all the drivers of consumer demand across its portfolio, including new product innovation, compelling marketing and merchandising. Campbell plans to introduce more than 50 new products in its U.S. Simple Meals business in fiscal 2013—ranging from new varieties of “Chunky” and “Campbell’s” condensed soups to delicious new soups under the “Campbell’s Go” platform and “Campbell’s” Skillet Sauces.
Alexander said, “We’ve made a step change in our innovation efforts. When you look at what we have on tap for fiscal 2013, you’ll see that our newly implemented innovation program is really starting to bear fruit, helping us fill our pipeline with new products that appeal to our loyal consumers while also reaching new ones.”
In addition, the company will also highlight new advertising to promote enhancements to its line of “Chunky” soups with the return of its Mama’s Boys campaign featuring NFL player Victor Cruz.
Global Baking & Snacking
Irene Chang Britt, Campbell’s Senior Vice President of Global Baking and Snacking, will share her perspective on opportunities to drive growth through increased collaboration across Campbell’s businesses in North America and Asia Pacific.
As an example, Pepperidge Farm recently launched “Jingos!” snack crackers, a product based on the same bold flavor profiles as “Arnott’s” “Roadies,” introduced last year in Australia.
Britt said, “We’ve invested both dollars and people into innovation and collaboration, and it is paying dividends. This has led to a track record of growth and share gains in our core markets and will fuel the opportunity to grow beyond our core.”
Alexander will also outline fiscal 2013 plans for U.S. Beverages, including efforts to drive the “V8” 100% vegetable juice business and to fuel continued growth in the “V8 V-Fusion” franchise. Campbell will introduce the first line extensions to “V8” 100% vegetable juice in nearly 10 years, and will also launch “V8 V-Fusion” Iced Teas in lemon and peach flavors, among other new product innovations.
Reiterates Fiscal 2012 Guidance
Excluding acquisition costs associated with the planned purchase of Bolthouse Farms, Campbell remains on track to deliver results consistent with its previous guidance, with fiscal 2012 sales growth expected to be near the low end of the previously forecast range of 0 to 2 percent; adjusted EBIT expected to decline at a level near the low end of the previously forecast range of 7 to 9 percent; and adjusted EPS expected to decline at a level near the upper end of the previously forecast range of 5 to 7 percent.
Return to Growth in Fiscal 2013
Craig Owens, Senior Vice President and Chief Financial Officer and Chief Administrative Officer, said, “We expect improvement across our entire portfolio next year. We are doing the right things to continue to improve our trajectory, including a significantly enhanced innovation pipeline. We are making progress with our strategies and are vigorously working to deliver further progress in fiscal 2013.”
Campbell expects to return to growth in sales, adjusted EBIT and adjusted net EPS in fiscal 2013. The growth rates for fiscal 2013, before considering the positive impact of the Bolthouse Farms acquisition, are expected to be below the company’s long-term targets of net sales growth of between 3 and 4 percent, adjusted EBIT growth of between 4 and 6 percent and adjusted net EPS growth of between 5 and 7 percent.
Campbell plans to provide more specific guidance for fiscal 2013 when it reports fourth-quarter results on Sept. 4, 2012.
A detailed reconciliation of adjusted financial information to the reported information is included at the end of this news release.
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell’s,” “Pepperidge Farm,” “Arnott’s” and “V8.” 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.campbellsoup.com
Cautionary Note Regarding Forward-looking Statements
This release contains “forward-looking statements.” Forward-looking
statements can be identified by words such as “anticipates,” “intends,”
“plans,” “believes,” “estimates,” “expects” and similar references to
future periods. Examples of forward-looking statements include, but are
not limited to, statements we make on our ability to execute our
business strategies successfully, on our expectations that we can
accelerate innovation across our portfolio, and on the expected impact
of the Bolthouse acquisition. Forward-looking statements are based on
our current expectations and assumptions regarding our business, our
industry and other future conditions. Forward-looking statements are
subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict. Our actual results may differ materially
from those contemplated by the forward-looking statements. Important
factors that could cause actual results to differ materially from those
in the forward-looking statements include our ability to realize the
anticipated benefits from the Bolthouse acquisition, the impact of
strong competitive response to our marketing strategies, risks
associated with trade and consumer acceptance of the company’s
initiatives, including innovation, renovation and new products and the
other factors described in “Risk Factors” in the company’s most recent
Form 10-K and subsequent SEC filings. We undertake no obligation to
update these statements to reflect new information or future events.
Reconciliation of GAAP and Non-GAAP Financial Measures
Fiscal Year Ended July 31, 2011
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.
|(dollars in millions)||2011|
|Earnings before interest and taxes, as reported||$||1,279|
|Add: Restructuring charges (1)||63|
|Adjusted Earnings before interest and taxes||$||1,342|
Adjusted Diluted Net Earnings per Share
|Diluted net earnings per share, as reported||
|Add: Restructuring charges (1)||0.12|
|Adjusted Diluted net earnings per share||$||2.54|
(1) In 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 2011, the company recorded pre-tax restructuring charges of $63 million ($41 million after tax or $.12 per share) related to these initiatives.