Campbell Launches Next Chapter of Growth at Fiscal 2025 Investor Day
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
New Long-term Growth Algorithm1 Increased on Topline
Organic |
+2 to +3% |
||
Adjusted EBIT |
+4 to +6% |
||
Adjusted EPS |
+7 to +9% |
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 approximately 95% 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
“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,
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:
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Growing organic net sales at approximately 2% to 3%. 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% to 6% 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 enterprise cost savings program through fiscal 2028. This plan will also build appropriate space for reinvestment back into the business. - Delivering adjusted EPS growth of approximately 7% to 9% 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
_______________________ 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
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INVESTOR CONTACT:
(856) 342-6081
Rebecca_Gardy@campbells.com
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James_Regan@campbells.com
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