Fourth-Quarter Sales Increased 13 Percent
Fourth-Quarter U.S. Simple Meals Organic Sales Rose 4 Percent, Fueled by U.S. Soup
Fourth-Quarter Global Baking and Snacking Organic Sales Gained 5 Percent
Fourth-Quarter Adjusted Net Earnings per Share Increased 10 Percent to $0.45
Full-Year Adjusted Net Earnings per Share Increased 8 Percent to $2.64
European Simple Meals Business Reported as a Discontinued Operation
Campbell Provides Fiscal 2014 Guidance for Continuing Operations Growth of 5 to 6 Percent in Sales, 5 to 7 Percent in Adjusted EBIT and 3 to 5 Percent in Adjusted EPS
CAMDEN, N.J.–(BUSINESS WIRE)–Aug. 29, 2013– Campbell Soup Company (NYSE:CPB) today reported its results for the fourth-quarter and full-year of fiscal 2013.
Denise Morrison, Campbell’s President and Chief Executive Officer, said, “Campbell made solid progress in fiscal 2013 as we executed our dual mandate to strengthen our core business and expand into higher-growth spaces. Our full-year sales and adjusted EBIT growth were consistent with our most recent fiscal 2013 guidance, and our EPS growth exceeded that guidance.
“The centerpiece of our progress in strengthening our core business was the performance of U.S. Soup, which delivered 5 percent sales growth for the year by optimizing all the drivers of demand and accelerating consumer-focused innovation. In our Pepperidge Farm business, we delivered continued growth in Goldfish crackers, revitalized the cookies business and expanded our share in fresh bakery. We also faced some challenges this year and are taking actions to fix our underperforming U.S. Beverages and North America Foodservice businesses.”
Morrison continued, “We made tangible progress on the second part of our dual mandate to expand into higher-growth spaces by driving breakthrough innovation and accelerating external development. In fiscal 2013, we launched many new products, including Campbell’s Skillet Sauces and Campbell’s Go Soups to reach new consumers, such as Millennials.
“We also added a trio of growth engines through our acquisitions of Bolthouse Farms, Plum Organics and the Kelsen Group. These acquisitions have combined annualized sales of approximately $1 billion and give us exciting new brand platforms to create value and attract new consumers. Bolthouse Farms, which delivered strong results in fiscal 2013, is a leader in the fast-growing packaged fresh foods category. Plum Organics is the number-two brand in the fast-growing premium organic baby food segment. The addition of Kelsen, a leading producer of premium butter cookies, gives us a position in baked snacks in China and Hong Kong. We also entered strategic alliances in Mexico to expand our access to manufacturing and distribution capabilities in this important market.
“As previously announced, we are in final and exclusive negotiations for the potential sale of our simple meals business in Europe, which includes brands such as Liebig in France, Erasco in Germany, Blå Band in Sweden and Devos Lemmons and Royco in Belgium. This potential transaction reflects a strategic choice. Across our company, we are focusing our investments, resources and talent on iconic brands that we believe we can grow around the world.
“Together, the actions under our dual mandate are reshaping our brand portfolio and shifting our center of gravity for a greater growth trajectory in the long term.”
Morrison concluded, “Looking ahead, we expect continued growth in our U.S. Soup and Pepperidge Farms businesses. We remain focused on increasing sales from faster-growing segments in North America; driving innovation with the launch of more than 200 new products; expanding availability in multiple channels; expanding our packaged fresh offerings; and accelerating growth in markets like China, Indonesia, Malaysia and Mexico. I’m excited about our direction and our progress. We have more work to do, but it’s undeniable that Campbell has come far in the last two years.”
Background on the Presentation of Results
On Aug. 12, 2013, the company announced the potential sale of its European simple meals business. This business, which was previously included in the International Simple Meals and Beverages segment, is now reported as a discontinued operation. Fourth-quarter results from discontinued operations reflect a non-cash impairment to reduce the carrying value of intangible assets, as well as a tax charge that is related to the potential sale.
Following a summary of total company net earnings and net earnings per share results, this news release separately presents the results of continuing operations and discontinued operations. We also present combined sales and adjusted EBIT of continuing operations and discontinued operations for ease of comparison to the company’s most recent fiscal 2013 sales and earnings guidance. A review of segment results from continuing operations for the fourth quarter and fiscal year is also provided.
Summary of Total Company Net Earnings and Net Earnings per Share
In aggregate, the company reported a net loss for the quarter ended July 28, 2013, of $158 million, or $0.50 per share, compared with net earnings of $127 million, or $0.40 per share, in the prior year. Excluding items impacting comparability in both periods, adjusted net earnings increased 9 percent to $142 million compared with $130 million in the prior year’s quarter, and adjusted net earnings per share increased 10 percent to $0.45 compared with $0.41 in the year-ago quarter. A detailed reconciliation of the reported financial information to the adjusted information is included at the end of this news release.
Net earnings for the fiscal year were $458 million, or $1.44 per share, compared with $774 million, or $2.41 per share, in the year-ago period. Excluding items impacting comparability, adjusted net earnings increased 7 percent to $836 million, and adjusted net earnings per share increased 8 percent to $2.64 compared with $2.44 in the prior year.
FOURTH-QUARTER RESULTS
(millions, except per share amounts)
Total
Fourth-Quarter Results – Continuing Operations
For the fourth quarter, sales from continuing operations increased 13 percent to $1.723 billion. Organic sales increased by 1 percent. The increase in sales for the quarter reflected the following factors:
Net earnings from continuing operations for the quarter were $117 million, or $0.37 per share, compared with earnings of $126 million, or $0.39 per share, in the prior year. In the fourth quarter of fiscal 2013, the company recorded restructuring charges and restructuring-related costs in cost of products sold associated with initiatives to improve its U.S. supply chain cost structure and to increase asset utilization across its U.S. thermal plant network; to expand access to manufacturing and distribution capabilities in Mexico; to improve its Pepperidge Farm bakery supply chain cost structure; and to reduce overhead costs in North America. The aggregate impact of the restructuring initiatives was $19 million after tax, or $0.06 per share, on earnings from continuing operations. In the fourth quarter of fiscal 2012, the company recorded transaction costs associated with the acquisition of Bolthouse Farms. The impact in the year-ago quarter from the acquisition transaction costs was $3 million after tax or $0.01 per share. Excluding items impacting comparability in both periods, adjusted net earnings from continuing operations increased 5 percent to $136 million compared with $129 million in the prior year’s quarter, and adjusted net earnings per share from continuing operations increased 8 percent to $0.43 compared with $0.40 in the year-ago quarter.
Fourth-Quarter Financial Details – Continuing Operations
Fourth-Quarter Results – Discontinued Operations
Sales from discontinued operations were $98 million compared to $94 million in the year-ago quarter. Adjusted EBIT for the quarter from discontinued operations was $9 million compared to no EBIT in the prior-year quarter.
Net loss from discontinued operations for the quarter was $275 million, or $0.87 per share, compared with net earnings from discontinued operations of $1 million in the prior year. Fourth-quarter results from discontinued operations reflect a non-cash impairment charge of $396 million ($263 million after tax or $0.83 per share) to reduce the carrying value of the intangible assets of the European simple meals business, as well as an $18-million tax charge ($0.06 per share) that is related to the potential sale. Excluding items impacting comparability in the current period, adjusted net earnings from discontinued operations were $6 million, and adjusted net earnings per share from discontinued operations were $0.02, compared with net earnings from discontinued operations of $1 million in the year-ago quarter.
Fourth-Quarter Results – Combined Continuing and Discontinued Operations
Combining continuing and discontinued operations, adjusted sales increased 13 percent to $1.821 billion from $1.613 billion. Combined adjusted EBIT from continuing and discontinued operations increased 4 percent to $217 million. Adjusted net earnings per share increased 10 percent to $0.45 compared with $0.41 in the year-ago quarter.
FULL-YEAR FISCAL 2013 RESULTS
Full-Year Results – Continuing Operations
Sales from continuing operations for the fiscal year were $8.052 billion, an increase of 12 percent from the year-ago period with organic sales up 2 percent. The increase in sales for the period reflected the following factors:
*Numbers do not add due to rounding
Net earnings from continuing operations for the fiscal year were $689 million, or $2.17 per share, compared with $734 million, or $2.29 per share, in the year-ago period. Results from continuing operations were impacted by restructuring and restructuring-related costs and acquisition transaction costs. Excluding items impacting comparability in both years, adjusted net earnings from continuing operations increased 6 percent to $786 million from $741 million in the prior year. Adjusted net earnings per share from continuing operations increased 7 percent to $2.48 from $2.31 in the year-ago period.
Full-Year Financial Details – Continuing Operations
Full-Year Results – Discontinued Operations
Sales from discontinued operations were $532 million in both years. Adjusted EBIT from discontinued operations was $65 million compared to $60 million in the prior year.
Net loss from discontinued operations for the fiscal year was $231 million, or $0.73 per share, compared with net earnings from discontinued operations of $40 million, or $0.12 per share, in the year-ago period. Fourth-quarter results from discontinued operations reflect a non-cash impairment to reduce the carrying value of intangible assets, as well as a tax charge that is related to the potential sale. Excluding items impacting comparability in both periods, adjusted net earnings from discontinued operations increased 19 percent to $50 million from $42 million in the prior year while adjusted net earnings per share from discontinued operations increased to $0.16 from $0.13 in the year-ago period.
Full-Year Results – Combined Continuing and Discontinued Operations
Combining continuing and discontinued operations, adjusted sales increased 11 percent to $8.584 billion from $7.707 billion. Combined adjusted EBIT from continuing and discontinued operations increased 6 percent to $1.297 billion from $1.227 billion in the prior year.
Net earnings were $458 million, or $1.44 per share, compared with $774 million, or $2.41 per share, in the year-ago period. Excluding items impacting comparability, adjusted net earnings increased to $836 million, and adjusted net earnings per share increased 8 percent to $2.64 compared with $2.44 in the prior year.
Summary of Fiscal 2013 Fourth-Quarter and Full-Year Results by Segment
U.S. Simple Meals
Sales for U.S. Simple Meals were $493 million for the fourth quarter, an increase of 7 percent compared with the year-ago period. A breakdown of the change in sales follows:
U.S. Soup sales increased 4 percent compared to the year-ago quarter.
Sales of U.S. Sauces increased 12 percent versus the prior-year quarter driven by the acquisition of Plum Organics, gains in “Prego” pasta sauce and new items, including “Campbell’s” Skillet Sauces. “Prego” sales also benefitted from new items, including white sauces and red distinctive sauces.
U.S. Simple Meals operating earnings increased 6 percent to $110 million, compared with $104 million in the prior-year period. Operating earnings increased primarily driven by productivity improvements and higher volumes, partly offset by increased promotional spending and higher administrative expenses. The increase in operating earnings reflected strong earnings gains in U.S. Soup, partly offset by a decline in U.S. Sauces.
For the fiscal year, sales for U.S. Simple Meals grew 5 percent to $2.849 billion. A breakdown of the change in sales follows:
U.S. Soup sales rose 5 percent with gains across all product segments. Sales of ready-to-serve soups increased 9 percent, sales of condensed soups increased 2 percent and sales of broth increased 4 percent.
Sales of U.S. Sauces increased 5 percent versus the prior year primarily driven by the acquisition of Plum Organics, gains in “Prego” pasta sauce and the introduction of “Campbell’s” Skillet Sauces.
U.S. Simple Meals operating earnings were $731 million in the fiscal year compared with $658 million in the year-ago period, an increase of 11 percent. Higher selling prices and productivity savings were partly offset by cost inflation. The improvement in operating earnings was driven by strong gains in U.S. Soup, partly offset by a decline in U.S. Sauces mostly due to higher marketing spending in support of new items.
Global Baking and Snacking
Sales for Global Baking and Snacking were $570 million for the fourth quarter, an increase of 3 percent from a year ago. The rise in sales reflected the following factors:
Further details of sales results included the following:
Operating earnings for the quarter were $84 million, an increase of 1 percent over the prior year. Operating earnings reflected the benefit of higher sales mostly offset by a lower gross margin percentage and increased administrative costs. The increase in operating earnings was driven by strong earnings gains in Pepperidge Farm, partially offset by a decline in Arnott’s and the unfavorable impact of currency.
For the fiscal year, sales increased 4 percent to $2.273 billion. A breakdown of the change in sales follows:
Operating earnings in the fiscal year increased $1 million to $316 million, reflecting growth in Pepperidge Farm mostly offset by lower earnings in Arnott’s.
International Simple Meals and Beverages
Sales for International Simple Meals and Beverages were $187 million for the fourth quarter, a decrease of 7 percent from a year ago. The sales decrease reflected the following factors:
Excluding the impact of currency, sales declines in Latin America and the Asia Pacific region were partially offset by higher sales in Canada.
Operating earnings were $14 million compared with $18 million in the year-ago period, a decrease of 22 percent. The decrease in operating earnings was primarily due to lower earnings in the Asia Pacific region and lower earnings in Mexico related to the implementation of new distribution arrangements.
For the fiscal year, sales were $869 million, comparable to the prior year. A breakdown of the change in sales follows:
Sales growth in China, Canada and Latin America was offset by declines in the Asia Pacific region and in export sales.
Operating earnings were $108 million, rising 2 percent from $106 million in the prior year, primarily due to China, reflecting lower marketing expenses, partly offset by a lower gross margin percentage.
U.S. Beverages
Sales for U.S. Beverages were $173 million for the fourth quarter, a decrease of 4 percent compared to the year-ago period. A breakdown of the change in sales follows:
The decrease in sales was primarily due to declines in “V8” vegetable juice. Sales of “V8 V-Fusion” juices and juice beverages and “V8 Splash” beverages also declined.
Operating earnings for the quarter were $20 million compared with $25 million in the prior year. The decrease in operating earnings was primarily due to cost inflation, partly offset by productivity improvements.
For the fiscal year, sales decreased 4 percent to $742 million. A breakdown of the change in sales follows:
Sales of “V8” vegetable juice and “V8 V-Fusion” juice and juice beverages declined, while sales of “V8 Splash” beverages increased.
Operating earnings in the fiscal year declined 10 percent to $120 million from $134 million in the prior year, reflecting the impact of lower sales and a lower gross margin percentage, partly offset by reduced advertising expenses.
Bolthouse and Foodservice
Sales for Bolthouse and Foodservice were $300 million for the fourth quarter, with the acquisition of Bolthouse Farms contributing $185 million. Sales in North America Foodservice declined 5 percent compared with a year ago. A breakdown of the change in North America Foodservice sales follows:
North America Foodservice sales decreased primarily due to volume declines in frozen soup, reflecting the loss of a major restaurant customer.
Operating earnings increased by $15 million to $25 million, reflecting the acquisition of Bolthouse Farms, which contributed $17 million, partially offset by lower earnings in North America Foodservice.
For the fiscal year, sales were $1.319 billion, with the acquisition of Bolthouse Farms contributing $756 million. North America Foodservice sales declined 8 percent to $563 million. A breakdown of the change in North America Foodservice sales follows:
Operating earnings for the fiscal year were $116 million compared with $85 million in the year-ago period. The increase in operating earnings was primarily due to the acquisition of Bolthouse Farms, which contributed $63 million, offset by lower earnings in North America Foodservice.
Unallocated Corporate Expenses
Unallocated corporate expenses for the quarter were $55 million compared with $36 million a year ago. The current quarter included $10 million of restructuring-related costs. The prior-year quarter included $5 million of transaction costs related to the Bolthouse Farms acquisition. Unallocated corporate expenses for the fiscal year were $260 million compared with $136 million in the prior year. The current year included $91 million of restructuring-related costs and $10 million of transaction costs related to the Bolthouse Farms acquisition. The prior year included $5 million of transaction costs related to the Bolthouse Farms acquisition. The balance of the increase for the current quarter and fiscal year was primarily due to higher incentive compensation costs.
Fiscal 2014 Guidance – Continuing Operations
In fiscal 2014, the company expects continuing operations to grow sales by 5 to 6 percent, adjusted EBIT to grow by 5 to 7 percent and adjusted EPS to grow by 3 to 5 percent. Fiscal 2014 comprises 53 weeks, one additional week compared to fiscal 2013, the benefit of which is expected to be offset by the anticipated impact of currency translation. The company expects acquisitions to contribute approximately $300 million to sales growth, 1 percent of EBIT growth and approximately $0.02 of EPS growth. In connection with the new business model in Mexico, reported sales and costs of products sold will be reduced by approximately $40 million. EPS growth reflects the impact of a significant increase in the tax rate, which is estimated to rise to approximately 31 to 32 percent.
Non-GAAP Financial Information
A detailed reconciliation of the reported financial information to the adjusted financial information is included at the end of this news release.
Conference Call
Campbell will host a conference call to discuss these results on Aug. 29, 2013, at 10:00 a.m. Eastern Daylight Time. Participants may access the call at +1 (703) 639-1328. The conference ID is 1620135. Participants should call at least ten minutes prior to the starting time. The passcode is “Campbell Soup” and the conference leader is Jennifer Driscoll. The call will also be broadcast live over the Internet at investor.campbellsoupcompany.com and can be accessed by clicking on the “News & Events” button. A recording of the call will be available approximately two hours after it is completed through midnight on Sept. 12, 2013, at +1 (703) 925-2533. The access code is 1620135. To download the new Campbell investor relations app, which offers access to SEC documents, news releases, audiocasts and more, please visit the Apple App store to download on your iPhone or iPad, or Google Play for your Android mobile device.
Reporting Segments
Campbell Soup Company earnings results are reported for the following segments:
U.S. Simple Meals aggregates the U.S. Soup and U.S. Sauces businesses. The U.S. Soup business includes the following products: “Campbell’s” condensed and ready-to-serve soups, and “Swanson” broth and stocks. The U.S. Sauces business includes “Prego” pasta sauce, “Pace” Mexican sauce, “Swanson” canned poultry, “Campbell’s” canned pasta, gravies, and beans, and “Plum Organics” food and snacks.
Baking and Snacking aggregates the following: “Pepperidge Farm” cookies, crackers, breads and frozen products in U.S. retail; and “Arnott’s” biscuits in Australia and Asia Pacific.
International Simple Meals and Beverages aggregates the following: soup, sauce and beverage products outside of the United States, including Latin America, Asia Pacific, China and the retail business in Canada.
U.S. Beverages include the following products: “V8” vegetable juices, “V8 V-Fusion” juices and juice beverages, “V8 Splash” juice beverages, and “Campbell’s” tomato juice.
Bolthouse and Foodservice includes the Bolthouse Farms and North America Foodservice businesses. Bolthouse Farms consists of the following products: super-premium refrigerated beverages, refrigerated salad dressings and carrot products, including fresh carrots, juice concentrate and fiber. North America Foodservice encompasses the distribution of products such as soup, specialty entrees, beverage products, other prepared foods and “Pepperidge Farm” products through various food service channels in the United States and Canada.
About Campbell Soup Company
Campbell Soup Company is a manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell’s,” “Pepperidge Farm,” “Arnott’s,” “V8,” “Bolthouse Farms,” “Plum Organics” and “Kjeldsens.” Through its corporate social responsibility program, the company strives to make a positive impact in the workplace, in the marketplace and in the communities in which it operates. Campbell is a member of the Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo.
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 sales, earnings, and margins. These forward-looking statements 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 (1) the impact of strong competitive responses to the company’s efforts to leverage its brand power in the market; (2) the impact of changes in consumer demand for the company’s products; (3) the risks associated with trade and consumer acceptance of the company’s initiatives; (4) the company’s ability to realize projected cost savings and benefits; (5) the company’s ability to manage changes to its business processes; (6) the practices and increased significance of certain of the company’s key trade customers; (7) the impact of fluctuations in the supply or costs of energy and raw and packaging materials; (8) the impact of portfolio changes, including the Bolthouse Farms, Plum Organics and Kelsen Group acquisitions, as well as the potential sale of the European simple meals business; (9) the uncertainties of litigation; (10) the impact of changes in currency exchange rates, tax rates, interest rates, debt and equity markets, inflation rates, economic conditions and other external factors; (11) the impact of unforeseen business disruptions in one or more of the company’s markets due to political instability, civil disobedience, armed hostilities, natural disasters or other calamities; and (12) other factors described in the company’s most recent Form 10-K and subsequent Securities and Exchange Commission filings. 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.
In fiscal 2013, the company recorded pre-tax restructuring charges of $20 and restructuring-related costs of $10 in Cost of products sold associated with initiatives to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network; expand access to manufacturing and distribution capabilities in Mexico; improve its Pepperidge Farm bakery supply chain cost structure; and reduce overhead costs in North America. The aggregate impact of the restructuring initiatives was $19 after tax or $.06 per share on earnings from continuing operations.
On August 12, 2013, the company announced that it is in final and exclusive negotiations for the potential sale of its simple meals business in Europe. The results of the business are reported as discontinued operations. In the fourth quarter of fiscal 2013, the company recorded an impairment charge on the intangible assets of this business of $396 ($263 after tax or $.83 per share) in earnings from discontinued operations. In addition, the company recorded $18 in tax charges ($.06 per share) in earnings from discontinued operations representing taxes on the difference between the book value and tax basis of the business.
In fiscal 2012, the company recorded pre-tax transaction costs of $5 ($3 after tax or $.01 per share) associated with the acquisition of Bolthouse Farms, which closed on August 6, 2012. The costs are included in Other expenses in earnings from continuing operations.
In fiscal 2013, the company recorded pre-tax restructuring charges of $51 and restructuring-related costs of $91 in Cost of products sold associated with initiatives to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network; expand access to manufacturing and distribution capabilities in Mexico; improve its Pepperidge Farm bakery supply chain cost structure; and reduce overhead costs in North America. The aggregate impact of the restructuring initiatives was $90 after tax or $.28 per share on earnings from continuing operations.
In fiscal 2013, the company recorded pre-tax transaction costs of $10 ($7 after tax or $.02 per share) associated with the acquisition of Bolthouse Farms, which closed on August 6, 2012. In fiscal 2012, the company recorded pre-tax transaction costs of $5 ($3 after tax or $.01 per share) associated with the acquisition. The costs are included in Other expenses in earnings from continuing operations.
In fiscal 2012, the company recorded pre-tax restructuring charges of $7 ($4 after tax or $.01 per share) in earnings from continuing operations associated with the initiatives announced in June 2011 to improve supply chain efficiency, reduce overhead costs across the organization, and exit the Russian market. The company recorded pre-tax restructuring charges of $3 ($2 after tax or $.01 per share) in earnings from discontinued operations associated with the initiatives.
Sales
Earnings
In fiscal 2013, the company recorded pre-tax restructuring charges of $20 and restructuring-related costs of $10 in Unallocated corporate expenses associated with initiatives to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network; expand access to manufacturing and distribution capabilities in Mexico; improve its Pepperidge Farm bakery supply chain cost structure; and reduce overhead costs in North America. The aggregate impact of the restructuring initiatives was $19 after tax or $.06 per share on earnings from continuing operations.
On August 12, 2013, the company announced that it is in final and exclusive negotiations for the potential sale of its simple meals business in Europe. The results of the business are reported as discontinued operations. In the fourth quarter of fiscal 2013, the company recorded an impairment charge on the intangible assets of this business of $396 ($263 after tax or $.83 per share) in earnings from discontinued operations. In addition, the company recorded $18 in tax charges ($.06 per share) in earnings from discontinued operations representing taxes on the difference between the book value and tax basis of the business. This business was previously included in the International Simple Meals and Beverages segment.
In fiscal 2012, the company recorded pre-tax transaction costs of $5 ($3 after tax or $.01 per share) associated with the acquisition of Bolthouse Farms, which closed on August 6, 2012. The costs are included in Unallocated corporate expenses in earnings from continuing operations.
2,849
2,273
869
742
1,319
316
108
120
116
1,391
260
51
1,080
125
275
680
(231
449
9
$
2.17
(.73
In fiscal 2013, the company recorded pre-tax restructuring charges of $51 and restructuring-related costs of $91 in Unallocated corporate expenses associated with initiatives to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network; expand access to manufacturing and distribution capabilities in Mexico; improve its Pepperidge Farm bakery supply chain cost structure; and reduce overhead costs in North America. The aggregate impact of the restructuring initiatives was $90 after tax or $.28 per share on earnings from continuing operations.
In fiscal 2013, the company recorded pre-tax transaction costs of $10 ($7 after tax or $.02 per share) associated with the acquisition of Bolthouse Farms, which closed on August 6, 2012. In fiscal 2012, the company recorded pre-tax transaction costs of $5 ($3 after tax or $.01 per share) associated with the acquisition. The costs are included in Unallocated corporate expenses in earnings from continuing operations.
On August 12, 2013, the company announced that it is in final and exclusive negotiations for the potential sale of its simple meals business in Europe. The assets and liabilities of the business are reported as assets and liabilities held for sale as of July 28, 2013.
Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal Year Ended July 28, 2013
Net Debt
2,004
2,790
(335
Organic Net Sales
Organic Net
(14
479
1
2,193
872
774
610
Items Impacting Earnings
Adjusted Earnings Before Interest and Taxes on a Combined Basis (Continuing Operations and Discontinued Operations)
217
208
1,297
1,227
Adjusted Earnings Before Interest and Taxes Excluding Acquisitions
Source: Campbell Soup Company
Campbell Soup CompanyCarla Burigatto (Media)856-342-3737[email protected]orJennifer Driscoll (Analysts/Investors)856-342-6081[email protected]
