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.
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.
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.
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.
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.
*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.