Campbell Launches Next Chapter of Growth at Fiscal 2025 Investor Day
Campbell Soup Company (NASDAQ:CPB) held an Investor Day outlining its next phase of growth. Key highlights include:
- A new long-term growth algorithm targeting 2-3% organic net sales growth, 4-6% adjusted EBIT growth, and 7-9% adjusted EPS growth
- Plans to change the company name to The Campbell's Company, subject to shareholder approval
- A new mission to 'Set the Standard' in the food industry
- Focus on 16 leadership brands representing 84% of enterprise sales
- A $250 million enterprise cost savings program through fiscal 2028
- Transformation of the Meals & Beverages division, including the Sovos Brands acquisition
- Continued growth and margin expansion in the Snacks division
The company aims to deliver predictable and sustainable top-tier results in the food industry.
Campbell Soup Company (NASDAQ:CPB) ha tenuto un Investor Day in cui ha delineato la sua prossima fase di crescita. I punti salienti includono:
- Un nuovo algoritmo di crescita a lungo termine che mira a 2-3% di crescita organica delle vendite nette, 4-6% di crescita dell'EBIT rettificato, e 7-9% di crescita dell'EPS rettificato
- Piani per cambiare il nome dell'azienda in The Campbell's Company, soggetto all'approvazione degli azionisti
- Una nuova missione di 'Stabilire lo Standard' nell'industria alimentare
- Focus su 16 marchi leader che rappresentano l'84% delle vendite aziendali
- Un programma di risparmi sui costi di 250 milioni di dollari fino all'esercizio 2028
- Trasformazione della divisione Meals & Beverages, inclusa l'acquisizione di Sovos Brands
- Crescita continua e ampliamento del margine nella divisione Snacks
L'azienda intende fornire risultati prevedibili e sostenibili ai massimi livelli nell'industria alimentare.
Campbell Soup Company (NASDAQ:CPB) celebró un Investor Day donde delineó su próxima fase de crecimiento. Los puntos clave incluyen:
- Un nuevo algoritmo de crecimiento a largo plazo que apunta a 2-3% de crecimiento orgánico en las ventas netas, 4-6% de crecimiento del EBIT ajustado, y 7-9% de crecimiento del EPS ajustado
- Planes para cambiar el nombre de la empresa a The Campbell's Company, sujeto a la aprobación de los accionistas
- Una nueva misión de 'Establecer el Estándar' en la industria alimentaria
- Enfoque en 16 marcas líderes que representan el 84% de las ventas de la empresa
- Un programa de ahorro de costos de 250 millones de dólares hasta el ejercicio 2028
- Transformación de la división de Comidas y Bebidas, incluida la adquisición de Sovos Brands
- Crecimiento continuo y expansión del margen en la división de Snacks
La empresa tiene como objetivo ofrecer resultados predecibles y sostenibles en la industria alimentaria.
캠벨스프회사(Campbell Soup Company) (NASDAQ:CPB)는 투자자의 날(Investor Day)을 개최하여 미래의 성장 단계를 제시했습니다. 주요 내용은 다음과 같습니다:
- 새로운 장기 성장 알고리즘으로 2-3% 유기농 순매출 성장, 4-6% 조정 EBIT 성장, 7-9% 조정 EPS 성장을 목표로 하며
- 주주 승인을 받는 조건으로 회사 이름을 The Campbell's Company로 변경할 계획
- 식품 산업에서 '기준을 설정하다'라는 새로운 사명
- 기업 매출의 84%를 차지하는 16개의 리더십 브랜드에 집중
- 2028 회계연도까지 2억 5천만 달러의 비용 절감 프로그램 운영
- Sovos Brands 인수를 포함한 Meals & Beverages 부서의 변환
- 스낵 부문의 지속적인 성장과 마진 확대
회사는 식품 산업에서 예측 가능하고 지속 가능한 최고 수준의 결과를 제공하는 것을 목표로 하고 있습니다.
La Campbell Soup Company (NASDAQ:CPB) a tenu une Journée Investisseur, soulignant sa prochaine phase de croissance. Les points clés comprennent:
- Un nouvel algorithme de croissance à long terme visant 2-3% de croissance organique des ventes nettes, 4-6% de croissance de l'EBIT ajusté et 7-9% de croissance de l'EPS ajusté
- Des projets de changer le nom de l'entreprise en The Campbell's Company, sous réserve de l'approbation des actionnaires
- Une nouvelle mission pour 'Établir la Norme' dans l'industrie alimentaire
- Concentration sur 16 marques leaders représentant 84% des ventes de l'entreprise
- Un programme d'économie de coûts de 250 millions de dollars jusqu'à l'exercice 2028
- Transformation de la division Repas et Boissons, y compris l'acquisition de Sovos Brands
- Croissance continue et expansion de la marge dans la division Snacks
L'entreprise vise à fournir des résultats prévisibles et durables de premier plan dans l'industrie alimentaire.
Die Campbell Soup Company (NASDAQ:CPB) hielt einen Investorentag ab, um ihre nächste Wachstumsphase zu umreißen. Die wichtigsten Punkte sind:
- Ein neuer langfristiger Wachstumsalgorithmus, der auf 2-3% organisches Nettoumsatzwachstum, 4-6% angepasstem EBIT-Wachstum und 7-9% angepasstem EPS-Wachstum abzielt
- Pläne, den Unternehmensnamen in The Campbell's Company zu ändern, vorbehaltlich der Genehmigung der Aktionäre
- Eine neue Mission, 'Den Standard zu setzen' in der Lebensmittelindustrie
- Fokus auf 16 Führungsmarken, die 84% des Unternehmensumsatzes ausmachen
- Ein Program zur Kostensenkung in Höhe von 250 Millionen Dollar bis zum Geschäftsjahr 2028
- Transformation der Abteilung Meals & Beverages, einschließlich der Übernahme von Sovos Brands
- Fortlaufendes Wachstum und Margenausweitung in der Snack-Abteilung
Das Unternehmen hat sich zum Ziel gesetzt, vorhersehbare und nachhaltige Top-Ergebnisse in der Lebensmittelindustrie zu liefern.
- New long-term growth algorithm targeting higher organic net sales, adjusted EBIT, and adjusted EPS growth
- Focus on 16 leadership brands representing 84% of enterprise sales and 95% of segment operating earnings
- $250 million enterprise cost savings program through fiscal 2028
- Acquisition of Sovos Brands to strengthen Meals & Beverages division
- Snacks division positioned for continued growth and margin expansion
- Strong and growing internal cash flow generation
- Potential shareholder dilution due to proposed company name change
- Dependence on successful integration of Sovos Brands acquisition
- Challenges in transforming the Meals & Beverages division
Insights
Campbell's new long-term growth algorithm signals a positive shift in the company's trajectory. The projected 2-3% organic net sales growth and 7-9% adjusted EPS growth through fiscal 2027 are ambitious yet achievable targets. The
The planned name change to "The Campbell's Company" reflects a strategic rebranding effort to encompass their expanded portfolio. The acquisition of Sovos Brands, particularly Rao's, is a game-changer for the Meals & Beverages division, potentially accelerating growth in this segment from historical levels.
Investors should note the company's focus on 16 leadership brands, representing
Campbell's strategy aligns well with current market trends. The focus on snacking, which has shown consistent 3-4% growth, capitalizes on changing consumer habits. The company's direct store delivery model in Snacks provides a competitive advantage, offering potential for further scale and efficiency.
The transformation of the Meals & Beverages division, particularly with the addition of Rao's, addresses the growing consumer demand for quality and convenience. This could help mitigate the historical challenges in the soup category.
The company's emphasis on sustainability and community impact aligns with increasing consumer and investor focus on ESG factors. However, execution of these initiatives and their impact on financial performance will be important to monitor.
Campbell's "Set the Standard" mission with its five pillars demonstrates a comprehensive approach to sustainable growth. The focus on building a top team and fostering an inclusive culture is important for long-term success and innovation.
The strategy of leveraging 16 leadership brands across both divisions provides a balanced approach to growth. However, the success of this strategy will depend on the company's ability to innovate and adapt to changing consumer preferences.
The planned deleveraging of the balance sheet is a prudent move, potentially providing financial flexibility for future strategic initiatives. Investors should closely monitor the integration of Sovos Brands and the realization of synergies, as successful execution will be key to achieving the ambitious growth targets.
Outlines Framework for Growth with New Long-term Algorithm
Since 2019, the company has made significant progress in three key areas:
- Transformed portfolio. Shifted focus to advantaged core categories and geographies critical to fueling net sales and earnings growth, including the acquisition of Sovos Brands.
- Rebuilt the foundation. Taken significant steps in improving its execution and capabilities, touching nearly every aspect of the company, including assembling an exceptional leadership team, enhancing the culture and turning its supply chain into a competitive advantage.
- Delivered on commitments. Built trust by consistently delivering strong financial results, while also outperforming consumer packaged goods peers on many key performance indicators.
“For the last five years, we have been on a transformative journey to redefine our company,” said Mark Clouse, Campbell’s President and Chief Executive Officer. “Our focused strategy has positioned us well and helped to solidify a foundation that has delivered consistent and dependable results. We are ready to turn the page and enter a new chapter where we build on Campbell’s transformed portfolio, strong team, and aligned and engaged culture with the goal to set the standard for performance in the food industry.”
Mark Clouse, Chief Executive Officer; Carrie Anderson, Chief Financial Officer; Chris Foley, President, Snacks and Mick Beekhuizen, President, Meals & Beverages laid out the next phase of Campbell’s growth plans, including a new long-term growth algorithm to grow shareholder value.
New Long-term Growth Algorithm1 Increased on Topline
Organic Net Sales |
+2 to + |
||
Adjusted EBIT |
+4 to + |
||
Adjusted EPS |
+7 to + |
Setting the Standard for Performance
The company aims to set the standard for performance in the industry with a new strategy, new mission and new name. As part of its evolution and transformed portfolio, the company intends to change its name to The Campbell’s Company, subject to shareholder approval at its annual meeting of shareholders in November.
“This subtle yet important change retains the company’s iconic name recognition, reputation and equity built over 155 years while better reflecting the full breadth of the company’s portfolio,” said Clouse.
The company’s Set the Standard mission is clear and measurable, with five key pillars:
- Top Team. Foster an engaged and inclusive culture, while building capabilities and developing leaders at all levels of the organization.
-
Best Portfolio. Drive growth through 16 leadership brands which span across both Snacks and Meals & Beverages and represent
84% enterprise sales and approximately95% of the company’s segment operating earnings in fiscal 2024. - Winning Execution. Outperform the competition with an advantaged supply chain, stepped-up innovation capabilities, strong retailer relationships and effective deployment of new and evolving technology.
- Top-Tier Performance. Leverage the company’s top team, portfolio of best-in-class brands and operational capabilities to deliver strong revenue, earnings growth, and operating cash flow.
- Lasting Impact. Build on Campbell’s legacy of impact by delivering measurable results against sustainability and community goals.
“With the top team, the best portfolio of brands, a track record of strong execution and performance, and a commitment to building on our legacy of trust and impact, we have never been more prepared to deliver top-tier performance and to be the most dependable and most capable company in food,” said Clouse.
Full Potential Snacks
Chris Foley outlined the potential for continued long-term growth and margin expansion in its Snacks division supported by its elevated portfolio of leadership brands, a strong innovation pipeline, and an advantaged direct store delivery model that offers further scale opportunities.
“We have built the best snacks portfolio in faster growing and advantaged categories,” said Foley, President, Snacks. “We expect to continue to grow these advantaged core businesses by pursuing best-in-class innovation and unlocking the full potential from our advantaged distribution network. Our strategy is designed to deliver margin expansion while making the necessary investments to fuel growth for the future in a sustainable manner. We could not be better positioned for leading the on-going growth and momentum in snacking.”
Transforming Meals & Beverages
In its Meals & Beverages division, Mick Beekhuizen shared how its portfolio of leadership brands is better positioned than ever to meet consumers’ needs with continued focus on quality, convenience and value. With the game-changing acquisition of Sovos Brands, which elevates and strengthens its highly advantaged portfolio, the division has a new growth trajectory for dependable and profitable growth.
Beekhuizen noted that soup remains an important part of the Meals & Beverages division but is now a smaller portion of the transformed portfolio.
“Our Meals & Beverages transformation story is far from complete, as we challenge ourselves to unlock the potential of our portfolio of iconic and distinctive brands,” said Beekhuizen, President, Meals & Beverages. “We intend to set the standard for performance in the center store through our compelling consumer engagement and exciting flavor-forward innovation, with Rao’s strengthening and solidifying our potential and elevating our overall portfolio.”
Top-Tier Performance
The company aims to deliver highly predictable and sustainable top-tier results with a long-term algorithm that includes:
-
Growing organic net sales at approximately
2% to3% . This target reflects a historically consistent expectation of 3-4% on the Snacks business and a modest move up to 1-2% for the Meals & Beverages business, supported by the Sovos Brands acquisition. -
Long-term adjusted EBIT growth of approximately
4% to6% fueled by sustainable growth on topline and a variety of areas for division specific and enterprise initiatives to drive faster bottom line and margin expansion, including a new$250 million -
Delivering adjusted EPS growth of approximately
7% to9% through fiscal 2027 as the company grows adjusted earnings and reduces interest expense as it deleverages its balance sheet.
“Our execution and capabilities to enable top-tier performance have never been stronger,” said Carrie Anderson, Chief Financial Officer. “With a refreshed long-term algorithm, we have a clear roadmap for multi-year top- and bottom-line expansion. Our investor proposition is compelling, with strong and growing internal cash flow generation, providing multiple paths to create shareholder value.”
| _______________________ 1 Note: A non-GAAP reconciliation is not provided for long-term targets as the company is unable to reasonably estimate the full-year financial impact of items such as actuarial gains or losses on pension and postretirement plans because these impacts are dependent on future changes in market conditions. The inability to predict the amount and timing of these future items makes a detailed reconciliation of these forward-looking financial measures impracticable. |
About Campbell
For more than 150 years, Campbell (Nasdaq:CPB) has been connecting people through food they love. Generations of consumers have trusted us to provide delicious and affordable food and beverages. Headquartered in
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: the risk that the cost savings and any other synergies from the Sovos Brands, Inc. (“Sovos Brands”) transaction may not be fully realized or may take longer or cost more to be realized than expected, including that the Sovos Brands transaction may not be accretive within the expected timeframe or the extent anticipated; the risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; the company’s ability to execute on and realize the expected benefits from its strategy, including growing sales in snacks and growing/maintaining its market share position in soup; the impact of strong competitive responses to the company’s efforts to leverage its brand power with product innovation, promotional programs and new advertising; the risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies; the ability to realize projected cost savings and benefits from cost savings initiatives and the integration of recent acquisitions; disruptions in or inefficiencies to the company’s supply chain and/or operations, including reliance on key co-manufacturer and supplier relationships; the risks related to the effectiveness of the company's hedging activities and the company's ability to respond to volatility in commodity prices; the company’s ability to manage changes to its organizational structure and/or business processes, including selling, distribution, manufacturing and information management systems or processes; changes in consumer demand for the company’s products and favorable perception of the company’s brands; changing inventory management practices by certain of the company’s key customers; a changing customer landscape, with value and e-commerce retailers expanding their market presence, while certain of the company’s key customers maintain significance to the company’s business; product quality and safety issues, including recalls and product liabilities; the possible disruption to the independent contractor distribution models used by certain of the company’s businesses, including as a result of litigation or regulatory actions affecting their independent contractor classification; the uncertainties of litigation and regulatory actions against the company; the costs, disruption and diversion of management’s attention associated with activist investors; a disruption, failure or security breach of the company’s or the company's vendors' information technology systems, including ransomware attacks; impairment to goodwill or other intangible assets; the company’s ability to protect its intellectual property rights; increased liabilities and costs related to the company’s defined benefit pension plans; the company’s ability to attract and retain key talent; goals and initiatives related to, and the impacts of, climate change, including weather-related events; negative changes and volatility in financial and credit markets, deteriorating economic conditions and other external factors, including changes in laws and regulations; unforeseen business disruptions or other impacts due to political instability, civil disobedience, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics or other outbreaks of disease or other calamities; and other factors described in the company’s most recent Form 10-K and subsequent Securities and Exchange Commission filings. This discussion of uncertainties is by no means exhaustive but is designed to highlight important factors that may impact the company’s outlook. The company disclaims any obligation or intent to update forward-looking statements in order to reflect new information, events or circumstances after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240909980421/en/
INVESTOR CONTACT:
Rebecca Gardy
(856) 342-6081
Rebecca_Gardy@campbells.com
MEDIA CONTACT:
James Regan
(856) 219-6409
James_Regan@campbells.com
Source: Campbell Soup Company
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