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Campbell Reports First Quarter Earnings Growth of 10 Percent to $.56 Per Share; Sales Also Increase 10 Percent, Led by Strong U.S. Soup Performance

CAMDEN, N.J.–(BUSINESS WIRE)–Nov. 22, 2004–Campbell Soup
Company (NYSE:CPB) today reported diluted earnings per share for the
first quarter ended October 31, 2004 of $.56. This result compares to
$.51 recorded in the year-ago quarter.

For the first quarter, sales rose 10 percent to $2.1 billion.
Earnings before interest and taxes were $381 million, up 8 percent
versus the year-ago quarter. Sales for the quarter reflect the
following:

    --  Volume and mix added 9 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 2 percent

Net earnings were $230 million for the quarter, versus $211
million in the year-ago period.

Douglas R. Conant, Campbell’s President and Chief Executive
Officer, said, “We are off to a strong start. The significant
investments we have made to improve our products, packaging,
merchandising, and marketing are beginning to reach critical mass in
the marketplace. That is particularly true in our U.S. soup business
where our condensed and ready-to-serve soups, as well as broth, grew
strongly. Our decision to move more of our consumer marketing and
trade promotion programs into the first quarter drove category growth
and significant improvement in our competitive profile. Additionally,
the introduction of ‘Campbell’s Chunky’ chili has met with very
positive customer and consumer acceptance, demonstrating that the
‘Campbell’s’ brand can compete more broadly in the simple meals arena.
We were also pleased to deliver solid growth in our baking and
snacking businesses.”

Conant added, “For the remainder of the year, we must continue to
drive innovation and execute our programs with excellence. Over time,
this is the best way to deliver quality results and generate returns
to shareholders that are among the best in the industry.”

The company confirmed its fiscal year 2005 guidance for earnings
per share to increase between 5 and 7 percent, excluding restructuring
charges, from the adjusted fiscal year 2004 base of $1.58.

Beginning this quarter, Campbell is reporting new segments that
reflect the company’s new organizational structure announced in fiscal
2004. A summary of segment results for the first quarter follows.

    Summary of Fiscal 2005 First Quarter Results By Segment

    U.S. Soup, Sauces and Beverages

This reporting segment includes the following retail businesses:
“Campbell’s” condensed and ready-to-serve soups, “Swanson” broth and
canned poultry, “Prego” pasta sauce, “Pace” Mexican sauce, “Campbell’s
Chunky” chili, “Campbell’s” canned pasta, gravies and beans,
“Campbell’s Supper Bakes” meal kits, “V8” vegetable juices, “V8
Splash” juice beverages, and “Campbell’s” tomato juice.

Sales for U.S. Soup, Sauces and Beverages were $994 million, a 10
percent increase compared with the year-ago quarter. Operating
earnings of $275 million were up 4 percent, as higher sales volumes
were partially offset by increased trade promotion and advertising,
and higher materials costs.

A breakdown of the change in sales follows:

    --  Volume and mix added 13 percent

    --  Price and sales allowances subtracted 2 percent

    --  Increased promotional spending subtracted 1 percent

Ready-to-serve soup sales rose 18 percent, condensed soup sales
increased 10 percent and broth sales grew 7 percent.

Further details of sales results include the following:

    --  Both condensed eating and cooking soup sales rose, with
        significantly higher sales growth in eating soups, led by
        "Campbell's" Chicken Noodle and other varieties in the kids
        segment. The "iQ-Shelf Maximizer" gravity-feed shelving
        systems for condensed soups have now been installed in over
        11,000 stores, creating a much easier experience for consumers
        shopping for condensed soups.

    --  The strong performance of ready-to-serve soups was led by
        "Campbell's Chunky" soups, which continued to deliver strong
        growth behind increased trade promotion, as well as
        advertising linked to the National Football League. Six new
        varieties were introduced in the quarter.

    --  In the convenience arena, "Campbell's Chunky" and "Campbell's
        Select" soups in microwavable bowls increased sales in the
        quarter versus last year, while "Campbell's Soup at Hand"
        sales declined compared to the year-ago quarter. Last year
        seven new varieties of "Campbell's Soup at Hand" were
        introduced and introductory retail promotions were used to
        stimulate trial. Only two new items were introduced this year
        and marketing programs are being spread more evenly throughout
        the soup season. Repeat purchase of "Campbell's Soup at Hand"
        remains high.

    Highlights of this segment's other businesses include:

    --  Sales of "Campbell's Chunky" chili are off to a solid start in
        the quarter and the line-up is being expanded to include
        microwavable bowls, which will appear at retail beginning in
        January.

    --  "Campbell's SpaghettiO's" pasta responded well to the
        transition from the "Franco-American" to the "Campbell's"
        brand, and to the first new television advertising in several
        years.

    --  "Prego" pasta sauce sales increased as category trends
        continued to improve.

    --  "Pace" Mexican sauce sales declined due to a class of trade
        mix shift.

    --  Sales of "V8" vegetable juice declined versus the comparable
        quarter last year, primarily due to a shift in timing for
        promotional activity. "V8 Splash" juice beverages and
        "Campbell's" tomato juice also declined, due to competitive
        activity.

Baking and Snacking

This segment includes the following businesses: “Pepperidge Farm”
cookies, crackers, breads and frozen products in U.S. retail,
“Arnott’s” biscuits in Australia and Asia Pacific, and “Arnott’s”
salty snacks in Australia.

Sales for Baking and Snacking were $449 million, an 8 percent
increase compared with the year-ago quarter. Operating earnings
increased 10 percent to $46 million. The impact of higher net sales,
currency and productivity improvements were partially offset by
commodity cost inflation.

A breakdown of the change in sales follows:

    --  Volume and mix added 5 percent

    --  Price and sales allowances added 2 percent

    --  Increased promotional spending subtracted 3 percent

    --  Acquisitions added 1 percent

    --  Currency added 3 percent

    Further details of sales results include the following:

    --  Pepperidge Farm sales grew on the strong performance of its
        fresh bakery business, which leveraged the expanded
        distribution of "Pepperidge Farm" bagels and English muffins,
        continued strength of "Pepperidge Farm" whole grain breads,
        and the introduction of "Pepperidge Farm" Carb Style breads
        and rolls.

    --  "Pepperidge Farm Goldfish" snack cracker sales increased,
        driven by new distribution and increased promotions.

    --  Three new varieties of "Pepperidge Farm" premium pot pies
        contributed to the increased sales in the frozen segment.

    --  Arnott's sales rose, driven by strong performance of savory
        biscuits and higher sales of "Kettle" branded salty snacks.

International Soup and Sauces

This segment includes the soup, sauce and beverage businesses
outside of the United States, including Canada, Europe, Mexico, Latin
America, and the Asia Pacific region.

Sales for International Soup and Sauces were $416 million, an 8
percent increase compared to the first quarter of fiscal 2004.
Operating earnings increased 4 percent to $55 million, due to the
positive impact of currency.

A breakdown of the change in sales follows:

    --  Volume and mix added 3 percent

    --  Price and sales allowances subtracted 1 percent

    --  Increased promotional spending subtracted 1 percent

    --  Currency added 7 percent

        --  Further details of sales results include the following:

    --  Sales declined in Europe, where growth in Belgium and the
        successful launch of "Batchelors Super Noodles to Go" in the
        U.K., was offset by soup sales declines in Germany and
        Ireland.

    --  Sales in Asia Pacific declined as growth in Australia of
        "Campbell's Country Ladle" and "Campbell's Chunky" soups and
        "V8" beverages was more than offset by declines in soup sales
        in Asia.

    --  In Canada, soup and beverage sales increased significantly,
        rebounding from a weak year-ago period.

Other

The balance of the portfolio includes Godiva Chocolatier worldwide
and the Away From Home business in the U.S. and Canada.

Sales grew 12 percent to $232 million compared to the same period
a year ago. Operating earnings of $22 million were flat versus the
prior year, as growth in Away From Home was offset by an earnings
decline at Godiva, reflecting increased spending in support of product
launches and the new “GoDiva” advertising campaign, ahead of the
primary sales seasons.

A breakdown of the change in sales follows:

    --  Volume and mix added 8 percent

    --  Price and sales allowances added 3 percent

    --  Currency added 1 percent

    Further details of sales results include the following:

    --  Godiva Chocolatier sales improved significantly, with
        double-digit growth in same store sales in North America
        driven by new product introductions.

    --  Away From Home sales increased primarily due to the growth of
        refrigerated soups, partially offset by lower sales of frozen
        soups.

Non-GAAP Financial Information

A reconciliation of the adjusted fiscal year 2004 earnings per
share to the reported earnings per share can be found on the company’s
website at www.campbellsoupcompany.com in the “Investor Center”
section.

Conference Call

The company will host a conference call to discuss these results
on November 22 at 10:00 a.m. Eastern Standard Time. U.S. participants
may access the call at 1-877-546-1567 and non-U.S. participants at
1-210-839-8502. Participants should call at least five minutes prior
to the starting time. The passcode is “Campbell Soup” and the
conference leader is Len Griehs. The call will also be broadcast live
over the Internet at http://www.campbellsoupcompany.com and can be
accessed by clicking on the Webcast banner. A recording of the call
will be available approximately two hours after it is completed
through midnight November 26, 2004 at 1-800-873-2059 or
1-402-220-5376.

Forward-Looking Statements

This release contains “forward-looking statements” which reflect
the company’s current expectations about its future plans and
performance, including statements concerning the impact of marketing
investments and strategies, new product introductions, cost-saving
initiatives and quality improvement on sales, earnings and margins.
These forward-looking statements rely on a number of assumptions and
estimates which could be inaccurate and which are subject to risks and
uncertainties. Actual results could vary materially from those
anticipated or expressed in any forward-looking statement made by the
company. Please refer to the company’s most recent Form 10-K and
subsequent filings for a further discussion of these risks and
uncertainties. The company disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauce, beverage, biscuit, confectionery and other
prepared food products. The company is 135 years old, with over $7
billion in annual sales and a portfolio of more than 20 market-leading
brands. For more information on the company, visit Campbell’s website
on the Internet at www.campbellsoupcompany.com.

                  CAMPBELL SOUP COMPANY CONSOLIDATED
                  STATEMENTS OF EARNINGS (unaudited)
                 (millions, except per share amounts)


                                                THREE MONTHS ENDED
                                                ------------------
                                              October       November
                                              31, 2004      2, 2003
                                            ------------  ------------

Net sales                                    $    2,091    $    1,909
                                            ------------  ------------

Costs and expenses
    Cost of products sold                         1,245         1,108
    Marketing and selling expenses                  314           293
    Administrative  expenses                        129           123
    Research and development expenses                20            21
    Other expenses                                    2            10
                                            ------------  ------------
Total costs and expenses                          1,710         1,555
                                            ------------  ------------

Earnings before interest and taxes                  381           354
Interest, net                                        44            43
                                            ------------  ------------
Earnings before taxes                               337           311
Taxes on earnings                                   107           100
                                            ------------  ------------
Net earnings                                 $      230    $      211
                                            ============  ============

Per share - basic
   Net earnings                              $      .56    $      .51
                                            ============  ============

   Dividends                                 $      .17    $    .1575
                                            ============  ============

Weighted average shares outstanding - basic         409           411
                                            ============  ============


Per share - assuming dilution
   Net earnings                              $      .56    $      .51
                                            ============  ============

Weighted average shares outstanding
  - assuming dilution                               412           412
                                            ============  ============





                  CAMPBELL SOUP COMPANY CONSOLIDATED
        SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)
                 (millions, except per share amounts)



                                           THREE MONTHS ENDED
                                           ------------------
                                           October   November  Percent
Sales                                      31, 2004  2, 2003   Change
-----                                      --------  --------  -------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $   994   $   900       10%
   Baking and Snacking                         449       416        8%
   International Soup and
    Sauces                                     416       386        8%
   Other                                       232       207       12%
                                           --------  --------
Total sales                                $ 2,091   $ 1,909       10%
                                           ========  ========

Earnings
--------
Contributions:
   U.S. Soup, Sauces and
    Beverages                              $   275   $   265        4%
   Baking and Snacking                          46        42       10%
   International Soup and
    Sauces                                      55        53        4%
   Other                                        22        22        0%
                                           --------  --------
Total operating earnings                       398       382        4%
Unallocated corporate expenses                 (17)      (28)
                                           --------  --------

Earnings before interest and
 taxes                                         381       354        8%
Interest, net                                  (44)      (43)
Taxes on earnings                             (107)     (100)
                                           --------  --------
Net earnings                               $   230   $   211        9%
                                           ========  ========

Net earnings per share -
 assuming dilution                         $   .56   $   .51       10%
                                           ========  ========





                  CAMPBELL SOUP COMPANY CONSOLIDATED
                      BALANCE SHEETS (unaudited)
                              (millions)



                                                  October    November
                                                  31, 2004   2, 2003
                                                 ---------- ----------

Current assets                                   $   1,869  $   1,655

Plant assets, net                                    1,916      1,846

Intangible assets, net                               3,103      2,937

Other assets                                           340        305
                                                 ---------- ----------
     Total assets                                $   7,228  $   6,743
                                                 ========== ==========


Current liabilities                              $   2,602  $   2,763

Long-term debt                                       2,565      2,556

Nonpension postretirement benefits                     295        304

Other liabilities                                      649        505

Shareowners' equity                                  1,117        615
                                                 ---------- ----------
     Total liabilities and shareowners' equity   $   7,228  $   6,743
                                                 ========== ==========


Total debt                                       $   3,457  $   3,724
                                                 ========== ==========

Cash and cash equivalents                        $      44  $      39
                                                 ========== ==========
    CONTACT: Campbell Soup Company
             Media: Jerry S. Buckley, 856-342-6007
             Analysts: Leonard F. Griehs, 856-342-6428

    SOURCE: Campbell Soup Company