Campbell Soup Company Reaffirms FY2014 Guidance
Reaffirms Fiscal 2014 Guidance
Discusses Key Drivers for Fiscal 2015
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.
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.
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