Campbell to Outline Progress on Strengthening Core Businesses and Expanding into Higher Growth Spaces

Reiterates Fiscal 2013 Guidance; Provides Perspective on Fiscal 2014 Plans

CAMDEN, N.J.--()--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.

Contacts

Campbell Soup Company
Carla Burigatto (Media)
856-342-3737
or
Jennifer Driscoll (Analysts/Investors)
856-342-6081

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Contacts

Campbell Soup Company
Carla Burigatto (Media)
856-342-3737
or
Jennifer Driscoll (Analysts/Investors)
856-342-6081