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Reconciliation of non-GAAP Measures.
Focused to Win -- 2008 Annual Review Return to Annual Review introduction.
"As a more focused food company, we are ready to compete and win." --Douglas R. Conant. President and CEO
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Fellow Shareowners, It has been a challenging year for the food industry. Unprecedented inflation and a difficult economic climate worldwide have created the most challenging cost environment since we began our transformation plan seven years ago. I am particularly pleased to report that, despite these challenges, we again delivered strong growth in fiscal 2008, with adjusted results at the high end of our long-term targets for sales and earnings. Sales increased 8 percent(1) to $7.998 billion, and adjusted net earnings per share rose 7 percent to $2.09.(2)

Our U.S. Soup, Sauces and Beverages business delivered increased sales of 5 percent; our Baking and Snacking business delivered increased sales of 11 percent (6 percent excluding the impact of currency); and our International Soup, Sauces and Beverages business delivered increased sales of 15 percent (4 percent excluding the impact of currency).

We delivered this strong performance while funding our emerging market launches in Russia and China, maintaining solid marketing support across our portfolio, and continuing the rollout of our SAP enterprise-resource planning system across North America.

We also divested our Godiva Chocolatier business and certain of our Australian salty snack food brands and assets, as we continue to optimize Campbell's long-term growth potential in the three core categories where we believe we have the best growth prospects: Simple Meals, Baked Snacks, and Healthy Beverages.

In 2005, we set a goal to deliver the industry's best total shareowner returns over the next decade, by consistently delivering an above-average rolling three-year total shareowner return every year. We are proud that in 2008 our rolling three-year average total shareowner return is once again higher than the average for our peer group, 7.7 percent versus 6.1 percent.

Just as consumers are faced with higher grocery bills, we too must manage rising costs. With that in mind, we are accelerating our efforts to ensure that Campbell products continue to offer excellent value. We are expanding our efforts to improve our manufacturing reliability and productivity, which have enabled us to continue to deliver profitable growth for our shareowners. And, with the continued rollout of our SAP enterprise-resource planning system, we are enhancing our ability to carefully monitor and analyze our costs, which will allow us to more quickly take action when necessary.

We are absolutely focused to win — by sharpening our portfolio, investing in our icon brands, expanding our businesses in emerging markets, and proactively managing costs more aggressively. We are well on our way to realizing our mission of building the world's most extraordinary food company.

1. Fiscal 2008 included an extra week as compared to fiscal 2007. The impact on total company and segment sales was approximately 1-2 percent.

2. These amounts are adjusted for certain transactions not considered to be part of the ongoing business. Click here for a reconciliation of non-GAAP measures.

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