CAMDEN, N.J.--(BUSINESS WIRE)--Campbell Soup Company (NYSE: CPB), led by President and Chief Executive Officer Denise Morrison, will meet with investors today to discuss Campbell’s strategic imperatives designed to diversify its portfolio and meet consumers’ changing preferences.
Morrison will outline steps Campbell is taking to deliver sustainable, profitable topline growth in the rapidly-changing food industry by strengthening its core business while expanding into faster-growing spaces. These plans include building greater trust with consumers through real food, transparency and sustainability; accelerating digital marketing and e-commerce efforts; continuing to diversify Campbell’s portfolio in health and well-being; and broadening how Campbell views the faster-growing snacking category.
Management will also provide an overview of Campbell’s plans for its three divisions for the upcoming fiscal year, as well as review the company’s cost savings initiatives and plans to reinvest in the business.
Reaffirms Fiscal 2017 Guidance
Campbell reaffirmed its previous full-year guidance for fiscal 2017, which ends July 30, 2017. For the year, Campbell continues to expect net sales to change by -1 to 0 percent; adjusted Earnings Before Interest and Taxes (EBIT) to increase by 2 to 4 percent; and adjusted Earnings Per Share (EPS) to increase by 3 to 5 percent, or $3.04 to $3.09 per share.*
Campbell plans to provide fiscal 2018 guidance for net sales, adjusted EBIT and adjusted EPS when it reports fourth-quarter fiscal 2017 results on Aug. 31, 2017.
Cost Savings Initiatives and Cash Flow
Campbell expects to reach approximately $310 million in annual cost savings by the end of fiscal 2017. The company also continues to expect its current cost savings initiatives to deliver $450 million, or approximately 6 percent of sales, in annual savings by the end of fiscal 2020. This cost savings goal is incremental to the company's ongoing supply chain productivity program. Campbell expects an adjusted gross margin of approximately 38 percent* for fiscal 2017, and expects to generate approximately $1.25 billion in cash flow from operations in fiscal 2017.
Long-Term Growth Targets
Campbell reiterated its long-term targets for organic sales and earnings. The company is targeting long-term organic sales growth of 1 to 3 percent. Excluding currency translation, the company is targeting adjusted EBIT growth of 4 to 6 percent and adjusted EPS growth of 5 to 7 percent.
An audio and video webcast of the event, along with accompanying slides, will be broadcast simultaneously at investor.campbellsoupcompany.com beginning at 12:15 p.m. EDT today. A replay and transcript will be available after the event.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our Purpose: “Real food that matters for life’s moments.” We make a range of high-quality soups and simple meals, beverages, snacks and packaged fresh foods. For generations, people have trusted Campbell to provide authentic, flavorful and readily available foods and beverages that connect them to each other, to warm memories and to what’s important today. Led by our iconic Campbell’s brand, our portfolio includes Pepperidge Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal Dansk, Kjeldsens and Garden Fresh Gourmet. 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 & 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.
