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

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.”