- Focusing Portfolio on Campbell Snacks and
Campbell Meals and Beverages inNorth America , Leveraging Iconic Brands and Leading Market Positions - Pursuing Divestitures of
Campbell International (including Arnott’s and theKelsen Group ) andCampbell Fresh to Increase Focus; Proceeds will be Used to Significantly Reduce Debt - Raising Overall Cost Savings Target to
$945 Million by FY2022; Includes Snyder’s-Lance Savings and$150 Million in New Actions - Updates Long-term Targets
1. Focusing the company on two distinct businesses, Campbell Snacks and
2. Pursuing the divestitures of non-core businesses to focus and improve the company’s portfolio; proceeds will be used to significantly reduce debt; and,
3. Increasing its cost savings target to
Campbell’s interim President and CEO
“Our plan will build upon our existing strengths. Our new leadership team will concentrate on significantly improving operational discipline through a rigorous management model that aligns the enterprise from strategy through execution. We are moving forward with a sense of urgency to complete these changes in fiscal 2019, setting the foundation for sustainable, profitable growth in fiscal 2020 and beyond. The Board and management team are committed to deleveraging the company, retaining our investment grade credit rating and maintaining our dividend. We will pursue further actions in addition to those announced today to optimize our portfolio and performance.”
Building a
Campbell will continue to provide consumers with great tasting, high-quality real food. Across the portfolio, the company’s brands will leverage consumer insights and trends to drive relevance, including health and well-being, snacking and convenience. Each of Campbell’s brands will be managed within a focused and disciplined framework of two differentiated portfolio roles:
- Drive Profitable Growth – These powerful and exciting brands will be managed to grow disproportionately relative to the categories in which they compete. These include leading brands such as
Cape Cod , Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific, Pepperidge Farm Farmhouse andMilano cookies, Prego and Snyder’s ofHanover . Investments in innovation and consumer engagement will enable these brands to leverage evolving consumer tastes and trends. - Maximize Margin & Cash Flow – These at-scale brands will be managed to generate consistent profit and cash flow. These include leading brands such as Campbell’s soup,
Pepperidge Farm fresh bakery, SpaghettiOs and V8. These brands will be managed with disciplined focus and aligned investments to support their strong market positions, to optimize operating margins and cash flow and to fulfill their equally important role in Campbell’s portfolio.
Pursuing Divestitures of Non-Core Businesses; Significantly Reduce Debt
Campbell has engaged
Increased Cost Savings
As a result of this more focused portfolio, Campbell is increasing its cost savings target by
Updated Long-Term Targets*
Campbell has adjusted its long-term targets to reflect the company’s actions and more focused portfolio.
- Organic net sales growth of 1 to 2 percent
- Adjusted EBIT growth of 4 to 6 percent
- Adjusted EPS growth of 7 to 9 percent
In addition, Campbell expects a net debt to adjusted EBITDA ratio of 3.0x by 2021.
These targets reflect expectations beyond fiscal 2019 and assume the completion of the planned divestitures of
*A non-GAAP reconciliation is not provided since certain items are not estimable, such as pension and postretirement mark-to-market adjustments, and these items are not considered to reflect the company’s ongoing business results.
Conference Call and Webcast
Campbell will host a 90-minute conference call to discuss its earnings results and the outcome of its strategic review today at
About
Campbell (NYSE:CPB) is driven and inspired by our Purpose, "Real food that matters for life's moments." For generations, people have trusted Campbell to provide authentic, flavorful and affordable snacks, soups and simple meals, and beverages. 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 and Poor's 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo. To learn more about how we make our food and the choices behind the ingredients we use, visit www.whatsinmyfood.com.
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 the company’s business or financial results. These forward-looking statements, including any statements made regarding sales, EBIT and EPS guidance, 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 company’s ability to execute on and realize the expected benefits from the actions it intends to take as a result of its recent strategy and portfolio review; (2) the ability to differentiate its products and protect its category leading positions, especially in soup; (3) the ability to complete and to realize the projected benefits of planned divestitures and other business portfolio changes; (4) the ability to realize the projected benefits, including cost synergies, from the recent acquisitions of Snyder’s-
View source version on businesswire.com: https://www.businesswire.com/news/home/20180830005328/en/
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MEDIA:
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