Campbell to Outline Growth Plans for Fiscal 2015

Reaffirms Fiscal 2014 Guidance

Discusses Key Drivers for Fiscal 2015

CAMDEN, N.J.--()--Campbell Soup Company (NYSE:CPB), led by President and Chief Executive Officer Denise Morrison, will meet with investors today to outline steps the company is taking to alter its growth trajectory and its plans to drive growth in fiscal 2015, which include the launch of more than 200 new products.

In her presentation, Morrison will share her perspective on the state of the packaged food industry and the consumer environment. Morrison will also discuss Campbell’s progress as it reshapes its portfolio to meet the changing needs of consumers and continues to execute its strategies to deliver sustainable, profitable net sales growth. Morrison and her management team will outline the steps Campbell is taking as it aspires to become a profitable $10 billion company within the next five years by strengthening its core business and expanding into faster-growing spaces.

Reaffirms Fiscal 2014 Guidance for Continuing Operations

Campbell reaffirmed its previous full-year guidance for fiscal 2014, which ends on Aug. 3, 2014. For the year, Campbell expects growth of approximately 3 percent in net sales from continuing operations and growth in adjusted EBIT at the low end of the 4 to 6 percent range. Adjusted EPS is expected to grow at the low end of the 2 to 4 percent range, or $2.53 to $2.58 per share. A detailed reconciliation of adjusted financial information to the reported information is included at the end of this news release.

Key Drivers for Fiscal 2015

Campbell plans to provide fiscal 2015 guidance when it reports fourth-quarter results on Sept. 8, 2014.

Looking ahead to fiscal 2015, Campbell expects organic sales to increase, reflecting improvements in its key categories, continued growth from its innovation platforms, progress in its U.S. Beverages and Australian businesses and the contribution from recent acquisitions.

Campbell also expects its gross margin percentage to be comparable to fiscal 2014. Absent further acquisitions, the company anticipates it will resume strategic share repurchases next fiscal year. Campbell suspended its strategic share repurchase program following the Bolthouse Farms acquisition in 2012.

Long-Term Targets

Campbell reiterated its long-term targets of 3 to 4 percent organic sales growth, 4 to 6 percent adjusted EBIT growth and 5 to 7 percent adjusted EPS growth. While Campbell expects an improvement in its organic sales performance for the coming year, the company’s fiscal 2015 performance is expected to be below these long-term targets. The company indicated that it may need to continue reshaping its portfolio to achieve these long-term goals.

A webcast of the meeting will be available at investor.campbellsoupcompany.com beginning at 12:30 p.m. Eastern Daylight Time today. A replay and transcript will be available after the event.

About Campbell Soup Company

Campbell (NYSE: CPB) makes real food that matters for life’s moments, from high-quality soups and simple meals to snacks and healthy beverages. For generations, people have trusted Campbell to provide authentic, flavorful and readily available foods and beverages that connect them to each other, to warm memories and to what’s important today. Led by its iconic “Campbell's” brand, the company’s portfolio includes “Pepperidge Farm”, “Goldfish”, “Bolthouse Farms”, “V8”, “Swanson”, “Prego”, “Pace”, “Plum Organics”, “Arnott’s”, “Tim Tam”, “Royal Dansk” and “Kjeldsens”. Founded in 1869, Campbell has a heritage of giving back and acting as a good steward of the planet’s natural resources. The company is a member of the Standard & Poor's 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com and @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; (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 28, 2013

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
2013
Restructuring
Charges and

Related

Transaction
(dollars in millions)   As Reported  

Costs (1)

  Costs (2)   Adjusted
Earnings from continuing operations attributable to Campbell Soup Company $ 689 $ 90 $ 7 $ 786
Add: Net earnings (loss) attributable to noncontrolling interests (9 ) - - (9 )
Add: Interest, net 125 - - 125
Add: Taxes on earnings     275       52     3     330  
Earnings before interest and taxes   $ 1,080     $ 142   $ 10   $ 1,232  
 
 

Adjusted Diluted Earnings Per Share – Continuing Operations

    2013
Diluted earnings per share – continuing operations attributable to Campbell Soup Company $ 2.17
Add: Restructuring charges and related costs (1) 0.28
Add: Acquisition transaction costs (2)     0.02
Adjusted Diluted earnings per share – continuing operations attributable to Campbell Soup Company*   $ 2.48
 

*The sum of the individual per share amounts may not add due to rounding.

(1) In fiscal 2013, the company implemented initiatives to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network; expand access to manufacturing and distribution capabilities in Mexico; improve its Pepperidge Farm bakery supply chain cost structure; and reduce overhead in North America. In fiscal 2013, the company recorded pre-tax restructuring charges of $51 million and restructuring-related costs of $91 million in Cost of products sold (aggregate impact of $90 million after tax or $.28 per share on earnings from continuing operations).

(2) In the first quarter of fiscal 2013, the company incurred transaction costs of $10 million ($7 million after tax or $.02 per share in earnings from continuing operations) associated with the acquisition of Bolthouse Farms, which closed on August 6, 2012.

Contacts

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

Release Summary

Campbell Soup Company will outline steps the company is taking to alter its growth trajectory and its plans to drive growth in fiscal 2015, including the launch of more than 200 new products.

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Contacts

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