Campbell Soup CEO retires as company sales fall flat
21 May 2018 --- Campbell Soup has announced that its CEO Denise Morrison is retiring immediately and be replaced by board member Keith McLoughlin as interim CEO. It came as shares in Campbell Soup, which recently acquired the Snyder's-Lance snack company, were down 11 percent at US$34.85 in early trading and the company reported a loss of $393 million on sales of $2.13 billion, or US$1.31 per share, in the quarter ended April 29, compared with a profit a year ago. This was mainly due to a US$647 million charge for its Campbell Fresh division, which is now being reviewed.
The company said: "Denise chose to retire as CEO and as a board member, and the board and she mutually agreed that it would become effective today," in a statement sent to CNBC.
Morrison became CEO in August 2011 after more than eight years at the company. Under Morrison, Campbell suffered four straight years of sales declines at its core US soups business, according to Reuters.
Campbell shares fell 3.8 percent in premarket trading as the company also lowered its earnings guidance for the year.
Campbell now expects full-year earnings per share to fall between 5 percent and 6 percent, compared with its earlier forecast of a 1 percent to 3 percent decline.
“Looking ahead, we will be reviewing all aspects of our strategic plans and portfolio composition. We anticipate that our review, which will take several months to complete, will lead to changes designed to improve our operating performance,” Chief Financial Officer Anthony DiSilvestro said in a statement.
Packaged food companies such as Campbell have been affected as consumers shift to healthier food options. Campbell’s juice business performance has also been disappointing, a factor that has contributed to a decline in organic sales.
Over a month ago, Campbell said it was reorganizing its businesses, giving newly-appointed Chief Operating Officer Luca Mignini more control over its central units, including soup, simple meals and shelf-stable beverages.
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