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Campbell's Q1 Adjusted Net Earnings Per Share Increases 7%, Sales Up 8%

 
Source: Campbell Soup Co. | Released Nov. 20, 2012
(11/27/2012)

CAMDEN, NJ -- (BUSINESS WIRE) -- Nov. 20, 2012 -- Campbell Soup Company (NYSE:CPB) reported its results for the first quarter of fiscal 2013.

CAMPBELL FIRST-QUARTER OVERVIEW:

» Reported Sales Increased 8 Percent; Organic Sales Increased 1 Percent

» Adjusted Earnings Before Interest and Taxes (EBIT) Increased 5 Percent, 2 Percent Excluding the Acquisition of Bolthouse Farms

» U.S. Simple Meals Sales Grew 3 Percent, With Soup Sales Up 2 Percent; Earnings Increased 5 Percent

» U.S. Beverages Sales Declined 5 Percent; Earnings Comparable To a Year Ago

» Campbell Completed the Acquisition of Bolthouse Farms on Aug. 6, 2012

» Campbell Recorded Charges Related To the Previously Announced Sept. 2012 Restructuring Program

Net earnings for the quarter ended Oct. 28, 2012, were $245 million, or $0.78 per share, compared with $265 million, or $0.82 per share, in the prior year. The current quarter's reported net earnings included transaction costs associated with the acquisition of Bolthouse Farms, as well as charges associated with the Sept. 2012 restructuring program. Excluding these items impacting comparability, adjusted net earnings increased 5 percent to $279 million, and adjusted net earnings per share increased 7 percent to $0.88 in the current quarter. A detailed reconciliation of the reported financial information to the adjusted information is included at the end of this news release.

Denise Morrison, Campbell's President and Chief Executive Officer, said, "We are encouraged by our performance in the first quarter and feel good about the progress we've made in executing our three growth strategies.

"In our largest business, U.S. Simple Meals, we generated sales growth both in U.S. Soup and in U.S. Sauces, driven by innovation in our base business and by new product introductions. Our recently acquired Bolthouse Farms business performed very well in the quarter, and we remain excited about the growth platform it provides Campbell in the packaged fresh foods category. We delivered continued solid performance at Pepperidge Farm in the crackers business, while our bakery business declined in the quarter. Our Asia Pacific business delivered good results, driven by improved performance in Australia and strong sales growth in Malaysia and Indonesia. In U.S. Beverages, our core business in original 'V8' vegetable juice and 'V8 V-Fusion' beverages continued to be challenged by slackening consumer demand."

Morrison concluded, "Overall, our fiscal year 2013 is off to a solid start. We remain focused on returning our company to sustainable, profitable net sales growth. We know we have more work to do to change Campbell's growth trajectory and achieve our long-term targets on our base business."

Campbell Confirms Fiscal 2013 Guidance

The company confirmed its previous fiscal 2013 guidance. Campbell expects to grow sales between 10 and 12 percent, adjusted EBIT between 4 and 6 percent and adjusted EPS between 3 and 5 percent. The company expects adjusted EPS to be between $2.51 and $2.57. This guidance includes the estimated impact of the Bolthouse Farms business and excludes the impact of acquisition transaction costs and restructuring charges. In fiscal 2013, Campbell expects Bolthouse Farms to contribute approximately $750 million to sales and add $0.05 to $0.07 to adjusted EPS, including the impact of the suspension of Campbell's strategic share repurchase program.

Restructuring Program

On Sept. 27, 2012, Campbell announced a program to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network. This initiative includes plans to close the company's South Plainfield spice plant by March 2013 and its Sacramento plant by July 2013. In the aggregate, the company expects to incur pre-tax costs of approximately $115 million, most of which will be incurred in fiscal 2013. In the first quarter, Campbell recorded pre-tax costs of $43 million, $27 million after tax or $0.09 per share, related to these initiatives.

First-Quarter Results

For the first quarter, sales increased 8 percent to $2.336 billion. The increase in sales for the quarter reflected the following factors: » The acquisition of Bolthouse Farms added 8 percent

» Price and sales allowances added 2 percent

» Increased promotional spending subtracted 1 percent

» Currency subtracted 1 percent

See the full press release by Clicking Here.

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