Camden / NJ. (csc) Campbell Soup Company held an Investor Day at the Nasdaq MarketSite in New York City where Campbell’s management team reviewed progress against the company’s transformation and outlined plans for the next era of accelerated growth. 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 Algorithm Increased on Topline
| Organic Net Sales | +2 to +3 percent | |
| Adjusted Ebit | +4 to +6 percent | |
| Adjusted EPS | +7 to +9 percent |
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. «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 percent enterprise sales and approximately 95 percent 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 percent to 3 percent. This target reflects a historically consistent expectation of 3-4 percent on the Snacks business and a modest move up to 1-2 percent for the Meals + Beverages business, supported by the Sovos Brands acquisition.
- Long-term adjusted Ebit growth of approximately 4 percent to 6 percent 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 USD 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 percent to 9 percent 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.»
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