caret-down

Campbell Reports Fourth-Quarter and Full-Year Results

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

 
Fourth-Quarter Total Company Summary of Results

(millions, except per share amounts)

           
Continuing Discontinued

 

Operations Operations

Total

 
2013 2012 2013 2012 2013 2012
As Reported:
Net Earnings (Loss) $ 117 $ 126 $ (275 ) $ 1 $ (158 ) $ 127
EPS $ 0.37 $ 0.39 $ (0.87 ) $ $ (0.50 ) $ 0.40
 
Adjusted:
Net Earnings $ 136 $ 129 $ 6 $ 1 $ 142 $ 130
EPS $ 0.43 $ 0.40 $ 0.02 $ $ 0.45 $ 0.41
 

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:

  • Acquisitions added 13 percent
  • Volume and mix added 1 percent
  • Price and sales allowances added 1 percent
  • Increased promotional spending subtracted 1 percent
  • Currency subtracted 1 percent

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

  • Gross margin was 36.2 percent compared with 39.0 percent a year ago.
    Excluding restructuring-related charges, adjusted gross margin in the
    current quarter was 36.7 percent. The decline in gross margin was
    primarily attributable to the acquisition of Bolthouse Farms, which
    operates with a lower gross margin structure. Excluding the
    acquisition, the impact of cost inflation was mostly offset by
    productivity improvements.
  • Marketing and selling expenses of $191 million were comparable to the
    prior year. In the current quarter, lower advertising and consumer
    promotion expense was offset by the addition of Bolthouse Farms
    expenses.
  • Administrative expenses increased $32 million to $195 million,
    primarily due to higher incentive compensation costs compared to
    below-targeted levels in the year-ago quarter and to the addition of
    Bolthouse Farms.
  • EBIT was $178 million compared with $203 million in the prior-year
    quarter. Excluding restructuring and restructuring-related charges, as
    well as acquisition transaction costs, adjusted EBIT of $208 million
    was comparable to the year-ago quarter. The acquisition of Bolthouse
    Farms contributed $17 million of EBIT in the current quarter.
    Excluding the impact of acquisitions, adjusted EBIT declined primarily
    due to higher administrative expenses.
  • Net interest expense increased $5 million to $30 million, reflecting a
    higher debt level due to the acquisition of Bolthouse Farms, partially
    offset by lower interest rates.
  • The tax rate in the quarter was 22.3 percent compared with 30.3
    percent in the prior year. Excluding items impacting comparability in
    both periods, the current quarter’s adjusted tax rate was 24.7 percent
    compared to 30.6 percent in the prior year. The decline in the
    effective tax rate was primarily due to lower state taxes and an
    increase in the U.S. manufacturing deduction.

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

 
Fiscal Year Total Company Summary of Results

(millions, except per share amounts)

           
Continuing Discontinued
Operations Operations Total
 
2013 2012 2013 2012 2013 2012
As Reported:
Net Earnings (Loss) $ 689 $ 734 $ (231 ) $ 40 $ 458 $ 774
EPS $ 2.17 $ 2.29 $ (0.73 ) $ 0.12 $ 1.44 $ 2.41
 
Adjusted:
Net Earnings $ 786 $ 741 $ 50 $ 42 $ 836 $ 783
EPS $ 2.48 $ 2.31 $ 0.16 $ 0.13 $ 2.64 $ 2.44
 

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:

  • Acquisitions added 11 percent
  • Volume and mix added 1 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 1 percent

*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

  • Gross margin was 36.2 percent compared with 39.2 percent a year ago.
    Excluding restructuring-related charges, adjusted gross margin for the
    fiscal year was 37.3 percent. The decline in gross margin was mostly
    attributable to the acquisition of Bolthouse Farms.
  • Marketing and selling expenses increased $6 million to $947 million.
    The increase was driven by the addition of Bolthouse Farms expenses
    and higher selling expenses, mostly offset by lower advertising and
    consumer promotion expenses.
  • Administrative expenses increased $97 million to $677 million,
    primarily due to the acquisition of Bolthouse Farms and higher
    incentive compensation costs.
  • EBIT was $1.080 billion compared with $1.155 billion in the prior
    year. Excluding restructuring, restructuring-related charges and
    acquisition transaction costs, adjusted EBIT rose 6 percent to $1.232
    billion primarily due to the acquisition of Bolthouse Farms, which
    contributed $63 million of EBIT in the year. Excluding acquisitions,
    adjusted EBIT was comparable to the prior year reflecting sales growth
    and lower marketing expenses, offset by higher administrative
    expenses, higher selling expenses, a lower gross margin percentage and
    higher research and development expenses.
  • The tax rate for the year was 28.8 percent compared with 31.0 percent
    in the prior year. Excluding items impacting comparability in both
    periods, the current year’s adjusted tax rate was 29.8 percent
    compared to 31.1 percent in the prior year. The decline in the
    effective tax rate was primarily due to lower state taxes, including
    the favorable resolution of certain matters, and an increase in the
    U.S. manufacturing deduction.
  • Cash flow from operations was $1.019 billion compared with $1.120
    billion in the prior year. The decline is primarily due to higher
    working capital requirements, partly offset by higher cash earnings.
  • Net debt rose to $4.1 billion, an increase of $1.665 billion,
    primarily due to funding the purchase of Bolthouse Farms and Plum
    Organics, partly offset by operating cash flow.

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:

  • Volume and mix added 5 percent
  • Price and sales allowances added 2 percent
  • Promotional spending subtracted 3 percent
  • The acquisition of Plum Organics added 3 percent

U.S. Soup sales increased 4 percent compared to the year-ago quarter.

  • Sales of “Campbell’s” condensed soups were comparable to the prior
    year, with increases in cooking varieties offset by decreases in
    eating varieties.
  • Sales of ready-to-serve soups increased 9 percent, primarily driven by
    volume gains in “100 % Natural” canned soups as a result of increased
    promotional activity in connection with the transition to “Campbell’s
    Homestyle” soups. Sales also benefitted from other new items,
    including “Campbell’s Go” soups.
  • Broth sales increased 13 percent, primarily driven by double-digit
    volume gains in aseptic broth.

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:

  • Volume and mix added 3 percent
  • Price and sales allowances added 2 percent
  • Promotional spending subtracted 1 percent
  • The acquisition of Plum Organics added 1 percent

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:

  • Volume and mix added 4 percent
  • Price and sales allowances added 3 percent
  • Promotional spending subtracted 2 percent
  • Currency subtracted 2 percent

Further details of sales results included the following:

  • “Pepperidge Farm” products posted strong sales growth, primarily
    driven by volume gains.

    • In cookies and crackers, sales increases were driven by strong
      gains in both “Goldfish” snack crackers and “Pepperidge Farm”
      cookies.
    • Sales of fresh bakery products increased double-digits versus the
      prior year, with volume gains across sandwich breads and rolls.
  • Sales at Arnott’s decreased primarily due to the negative impact of
    currency and sales declines in Australia, partially offset by gains in
    Indonesia.

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:

  • Volume and mix added 4 percent
  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 2 percent

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:

  • Volume and mix subtracted 4 percent
  • Price and sales allowances subtracted 1 percent
  • Currency subtracted 2 percent

Excluding the impact of currency, sales declines in Latin America and
the Asia Pacific region were partially offset by higher sales in Canada.

  • In the Asia Pacific region, sales decreased primarily due to declines
    in Australia and the negative impact of currency, partially offset by
    sales growth in Malaysia.
  • In Canada, sales were comparable to the prior-year quarter, with gains
    in “Pepperidge Farm” crackers offset by declines in soup and beverages
    and the negative impact of currency.

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:

  • Price and sales allowances added 2 percent
  • Increased promotional spending subtracted 2 percent

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:

  • Volume and mix subtracted 4 percent
  • Price and sales allowances subtracted 1 percent
  • Decreased promotional spending added 1 percent

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:

  • Volume and mix subtracted 3 percent
  • Increased promotional spending subtracted 1 percent

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:

  • Volume and mix subtracted 7 percent
  • Decreased promotional spending added 2 percent

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:

  • Volume and mix subtracted 6 percent
  • Increased promotional spending subtracted 2 percent

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.

 
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(millions, except per share amounts)
 
THREE MONTHS ENDED
July 28, 2013   July 29, 2012
Net sales $ 1,723   $ 1,519
Costs and expenses
Cost of products sold 1,100 926
Marketing and selling expenses 191 191
Administrative expenses 195 163
Research and development expenses 34 31
Other expenses 5 4
Restructuring charges   20     1
Total costs and expenses   1,545     1,316
Earnings before interest and taxes 178 203
Interest, net   30     25
Earnings before taxes 148 178
Taxes on earnings   33     54
Net earnings from continuing operations 115 124
Net earnings (loss) from discontinued operations   (275 )   1
Net earnings (loss) (160 ) 125
Net loss attributable to noncontrolling interests   2     2
Net earnings (loss) attributable to Campbell Soup Company $ (158 ) $ 127
Per share – basic
Net earnings from continuing operations $ .37 $ .40
Net earnings (loss) from discontinued operations   (.88 )  
Net earnings (loss) attributable to Campbell Soup Company* $ (.50 ) $ .40
Dividends $ .29   $ .29
Weighted average shares outstanding – basic   314     315
Per share – assuming dilution
Net earnings from continuing operations $ .37 $ .39
Net earnings (loss) from discontinued operations   (.87 )  
Net earnings (loss) attributable to Campbell Soup Company* $ (.50 ) $ .40
Weighted average shares outstanding – assuming dilution   317     317
 
*The sum of the individual per share amounts does not add due to
rounding.
 

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.

 
CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(millions, except per share amounts)
 
  TWELVE MONTHS ENDED
July 28, 2013   July 29, 2012
Net sales $ 8,052   $ 7,175
Costs and expenses
Cost of products sold 5,140 4,365
Marketing and selling expenses 947 941
Administrative expenses 677 580
Research and development expenses 128 116
Other expenses 29 11
Restructuring charges   51     7
Total costs and expenses   6,972     6,020
Earnings before interest and taxes 1,080 1,155
Interest, net   125     106
Earnings before taxes 955 1,049
Taxes on earnings   275     325
Net earnings from continuing operations 680 724
Net earnings (loss) from discontinued operations   (231 )   40
Net earnings 449 764
Net loss attributable to noncontrolling interests   9     10
Net earnings attributable to Campbell Soup Company $ 458   $ 774
Per share – basic
Net earnings from continuing operations $ 2.19 $ 2.30
Net earnings (loss) from discontinued operations   (.74 )   .12
Net earnings attributable to Campbell Soup Company* $ 1.46   $ 2.43
Dividends $ 1.16   $ 1.16
Weighted average shares outstanding – basic   314     317
Per share – assuming dilution
Net earnings from continuing operations $ 2.17 $ 2.29
Net earnings (loss) from discontinued operations   (.73 )   .12
Net earnings attributable to Campbell Soup Company $ 1.44   $ 2.41
Weighted average shares outstanding – assuming dilution   317     319
 
*The sum of the individual per share amounts does not add due to
rounding.
 

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.

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 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.

 
CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
 
  THREE MONTHS ENDED  
  Percent
July 28, 2013 July 29, 2012 Change

Sales

Contributions:
U.S. Simple Meals $ 493 $ 461 7 %
Global Baking and Snacking 570 556 3 %
International Simple Meals and Beverages 187 200 (7 )%
U.S. Beverages 173 181 (4 )%
Bolthouse and Foodservice 300   121   148 %
Total sales $ 1,723   $ 1,519   13 %

Earnings

Contributions:
U.S. Simple Meals $ 110 $ 104 6 %
Global Baking and Snacking 84 83 1 %
International Simple Meals and Beverages 14 18 (22 )%
U.S. Beverages 20 25 (20 )%
Bolthouse and Foodservice 25   10   150 %
Total operating earnings 253 240 5 %
Unallocated corporate expenses 55 36
Restructuring charges 20   1  
Earnings before interest and taxes 178 203 (12 )%
Interest, net 30 25
Taxes on earnings 33   54  
Net earnings from continuing operations 115 124
Net earnings (loss) from discontinued operations (275 ) 1  
Net earnings (loss) (160 ) 125 (228 )%
Net loss attributable to noncontrolling interests 2   2  
Net earnings (loss) attributable to Campbell Soup Company $ (158 ) $ 127   (224 )%
Per share – assuming dilution
Net earnings from continuing operations $ .37 $ .39
Net earnings (loss) from discontinued operations (.87 )  
Net earnings (loss) attributable to Campbell Soup Company* $ (.50 ) $ .40   (225 )%
 
*The sum of the individual per share amounts does not add due to
rounding.
 

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.

 
CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
 
  TWELVE MONTHS ENDED  
  Percent
July 28, 2013 July 29, 2012 Change

Sales

Contributions:
U.S. Simple Meals $

2,849

$ 2,726 5 %
Global Baking and Snacking

 

2,273

2,193 4 %
International Simple Meals and Beverages

 

869

872 %
U.S. Beverages

 

742

774 (4 )%
Bolthouse and Foodservice

 

1,319

  610   116 %
Total sales $ 8,052   $ 7,175   12 %

Earnings

 

Contributions:
U.S. Simple Meals $ 731 $ 658 11 %
Global Baking and Snacking

 

316

315 %
International Simple Meals and Beverages

 

108

106 2 %
U.S. Beverages

 

120

134 (10 )%
Bolthouse and Foodservice

 

116

  85   36 %
Total operating earnings

 

1,391

1,298 7 %
Unallocated corporate expenses

 

260

136
Restructuring charges

 

51

  7  
Earnings before interest and taxes

 

1,080

1,155 (6 )%
Interest, net

 

125

106
Taxes on earnings

 

275

  325  
Net earnings from continuing operations

 

680

724
Net earnings (loss) from discontinued operations

 

(231

) 40  
Net earnings

 

449

764 (41 )%
Net loss attributable to noncontrolling interests

 

9

  10  
Net earnings attributable to Campbell Soup Company $ 458   $ 774   (41 )%
Per share – assuming dilution
Net earnings from continuing operations

$

2.17

$ 2.29
Net earnings (loss) from discontinued operations

 

(.73

) .12  
Net earnings attributable to Campbell Soup Company $ 1.44   $ 2.41   (40 )%
 

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 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 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.

 
CAMPBELL SOUP COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
 
  July 28, 2013   July 29, 2012
Current assets $ 2,028 $ 1,771
Current assets held for sale 193
Plant assets, net 2,260 2,127
Intangible assets, net 3,318 2,509
Other assets 131 123
Non-current assets held for sale 393  
Total assets $ 8,323   $ 6,530
Current liabilities $ 3,168 $ 2,070
Current liabilities held for sale 114
Long-term debt 2,544 2,004
Other liabilities 1,265 1,558
Non-current liabilities held for sale 22
Total equity 1,210   898
Total liabilities and equity $ 8,323   $ 6,530
Total debt $ 4,453   $ 2,790
Cash and cash equivalents $ 333   $ 335
 

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

 
Campbell Soup Company uses certain non-GAAP financial measures as
defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted
in the United States and should be considered in addition to, not in
lieu of, GAAP reported measures.
 

Net Debt

 
The company believes that net debt is a non-GAAP measure that
provides additional meaningful comparisons between the company’s
financial position at July 28, 2013 and July 29, 2012, and also a
useful perspective on the financial condition of the business.
Interest income earned on cash and cash equivalents partially
offsets interest expense on debt. Cash and cash equivalents are
available to repay outstanding debt upon maturity.
 
The table below summarizes information on total debt and cash and
cash equivalents:
       
(millions) July 28, 2013 July 29, 2012
Short-term borrowings $ 1,909 $ 786
Long-term debt 2,544  

 

2,004

 
Total debt $ 4,453

$

2,790

Less: Cash and cash equivalents (333 )

 

(335

)
Net debt $ 4,120   $ 2,455  

Organic Net Sales

 
The company believes that organic net sales, which exclude the
impact of acquisitions and currency, improves the comparability of
year-to-year results. A reconciliation of net sales as reported to
organic net sales follows. 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.
 
Three Months Ended
    July 29,  
July 28, 2013 2012 % Change
Net Sales, as   Impact of   Impact of   Organic Net Net Sales, as Net Sales, as  

Organic Net

(millions) Reported   Currency   Acquisition   Sales Reported Reported   Sales
U.S. Simple Meals $ 493 $

$

(14

)

$

479

$ 461 7 % 4 %
Global Baking and Snacking 570 13 583 556 3 % 5 %
International Simple Meals and Beverages 187 4 191 200 (7 )% (5 )%
U.S. Beverages 173 173 181 (4 )% (4 )%
Bolthouse and Foodservice 300         (185 )     115   121   148 %   (5 )%
Total Net Sales $ 1,723     $ 17     $ (199 )  

$

1,541   $ 1,519   13 %

1

%
Net sales included in discontinued operations $ 98   $ 94  
Combined Net Sales $ 1,821   $ 1,613   13 %
 
Year Ended
    July 29,  
July 28, 2013 2012 % Change
Net Sales, as   Impact of   Impact of   Organic Net Net Sales, as Net Sales, as   Organic Net
(millions) Reported   Currency   Acquisition   Sales Reported Reported   Sales
U.S. Simple Meals $ 2,849 $ $ (14 )

$

2,835 $ 2,726 5 % 4 %
Global Baking and Snacking 2,273 10

 

2,283

 

2,193

4 % 4 %
International Simple Meals and Beverages 869 3

 

872

 

872

% %
U.S. Beverages 742

 

742

 

774

(4 )% (4 )%
Bolthouse and Foodservice 1,319         (756 )  

 

563  

 

610

  116 %   (8 )%
Total Net Sales $ 8,052     $ 13     $ (770 )   $ 7,295   $ 7,175   12 % 2 %
Net sales included in discontinued operations $ 532   $ 532  
Combined Net Sales $ 8,584   $ 7,707   11 %
 

Items Impacting Earnings

 
The company believes that financial information excluding certain
transactions that are not considered to be part of the ongoing
business, or that excludes the impact of acquisitions and
divestitures, improves the comparability of year-to-year results.
Consequently, the company believes that investors may be able to
better understand its earnings results excluding these transactions.
 
The following items impacted earnings:
 
(1) In the fourth quarter of fiscal 2013, the company recorded pre-tax
restructuring charges of $20 million and restructuring-related costs
of $10 million 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 in North America. The aggregate impact of the restructuring
initiatives was $19 million after tax or $.06 per share on earnings
from continuing operations. The aggregate impact of the
restructuring initiatives on fiscal 2013 was pre-tax restructuring
charges of $51 million and restructuring-related costs of $91
million in Cost of products sold (aggregate impact of $90 million
after tax or $.28 per share on earnings from continuing operations).
 
In fiscal 2012, the company recorded pre-tax restructuring charges
of $7 million ($4 after tax or $.01 per share) in earnings from
continuing operations associated with 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 million ($2 million
after tax or $.01 per share) in earnings from discontinued
operations associated with the initiatives.
 
(2) In the fourth quarter of fiscal 2012, the company announced its
intent to acquire Bolthouse Farms. In the first quarter of fiscal
2013, the company incurred transaction costs of $10 million ($7
million after tax or $.02 per share) associated with the
acquisition, which closed on August 6, 2012. In the fourth quarter
of fiscal 2012, the company incurred transaction costs of $5 million
($3 million after tax or $.01 per share) associated with the
acquisition. The costs are included in earnings from continuing
operations.
 
(3) The Bolthouse Farms and Plum Inc. contributed $14 million to
earnings before interest and taxes in the fourth quarter of fiscal
2013. For the year ended July 28, 2013, the acquisitions contributed
$60 million to earnings before interest and taxes.
 
(4) 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 million ($263 million after tax or $.83 per
share) in earnings from discontinued operations. In addition, the
company recorded $18 million in tax charges ($.06 per share) in
earnings from discontinued operations representing taxes on the
difference between the book value and tax basis of the business.
 
The tables below reconcile financial information, presented in
accordance with GAAP, to financial information excluding certain
transactions:
   
Three Months Ended
(millions, except per share amounts) July 28, 2013   July 29, 2012 Percent Change
Gross margin, as reported $ 623 $ 593
Add: Restructuring-related costs (1) 10    
Adjusted Gross margin $ 633   $ 593   7 %
Adjusted Gross margin percentage 36.7 % 39.0 %
 
Earnings before interest and taxes, as reported $ 178 $ 203
Add: Restructuring charges and related costs (1) 30
Add: Acquisition transaction costs (2)   5  
Adjusted Earnings before interest and taxes $ 208   $ 208   %
Interest, net, as reported $ 30   $ 25  
Adjusted Earnings before taxes $ 178   $ 183  
 
Taxes on earnings, as reported $ 33   $ 54  
Add: Tax benefit from restructuring charges and related costs (1) 11
Add: Tax benefit from acquisition transaction costs (2)   2  
Adjusted Taxes on earnings $ 44   $ 56  
Adjusted effective income tax rate 24.7 % 30.6 %
 
Net Earnings from continuing operations, as reported $ 115 $ 124
Deduct: Net loss from noncontrolling interests (2 ) (2 )
Net Earnings from continuing operations attributable to Campbell
Soup Company
$ 117 $ 126
Add: Net adjustment from restructuring charges and related costs (1) 19
Add: Net adjustment from acquisition transaction costs (2)   3  
Adjusted Net earnings from continuing operations $ 136   $ 129   5 %
 
Net earnings (loss) from discontinued operations, as reported $ (275 ) $ 1
Add: Net impairment on European business (4) 263
Add: Tax expense on book and tax differences (4) 18    
Adjusted Net earnings from discontinued operations $ 6   $ 1  
Adjusted Net earnings attributable to Campbell Soup Company $ 142   $ 130   9 %
 
Diluted earnings per share – continuing operations, as reported $ .37 $ .39
Add: Net adjustment from restructuring charges and related costs (1) .06
Add: Net adjustment from acquisition transaction costs (2)   .01  
Adjusted Diluted earnings per share – continuing operations $ .43   $ .40   8 %
 
Diluted earnings (loss) per share – discontinued operations, as
reported
$ (.87 ) $
Add: Net impairment on European business (4) .83
Add: Tax expense on book and tax differences (4) .06    
Adjusted Diluted earnings per share – discontinued operations $ .02   $  
 
Diluted net earnings (loss) per share attributable to Campbell
Soup Company, as reported*
$ (.50 ) $ .40
Add: Net adjustment from restructuring charges and related costs (1) .06
Add: Net adjustment from acquisition transaction costs (2) .01
Add: Net impairment on European business (4) .83
Add: Tax expense on book and tax differences (4) .06    
Adjusted Diluted net earnings per share attributable to Campbell
Soup Company
$ .45   $ .41   10 %
 
*The sum of the individual per share amounts does not add due to
rounding.
 
 
Year Ended
(millions, except per share amounts) July 28, 2013 July 29, 2012 Percent Change
Gross margin, as reported $ 2,912 $ 2,810
Add: Restructuring-related costs (1) 91    
Adjusted Gross margin $ 3,003   $ 2,810   7 %
Adjusted Gross margin percentage 37.3 % 39.2 %
 
Earnings before interest and taxes, as reported $ 1,080 $ 1,155
Add: Restructuring charges and related costs (1) 142 7
Add: Acquisition transaction costs (2) 10   5  
Adjusted Earnings before interest and taxes $ 1,232   $ 1,167   6 %
Interest, net, as reported $ 125   $ 106  
Adjusted Earnings before taxes $ 1,107   $ 1,061  
 
Taxes on earnings, as reported $ 275 $ 325
Add: Tax benefit from restructuring charges and related costs (1) 52 3
Add: Tax benefit from acquisition transaction costs (2) 3   2  
Adjusted Taxes on earnings $ 330   $ 330  
Adjusted effective income tax rate 29.8 % 31.1 %
 
Net Earnings from continuing operations, as reported $ 680 $ 724
Deduct: Net loss from noncontrolling interests (9 ) (10 )
Net Earnings from continuing operations attributable to Campbell
Soup Company
689 734
Add: Net adjustment from restructuring charges and related costs (1) 90 4
Add: Net adjustment from acquisition transaction costs (2) 7   3  
Adjusted Net earnings from continuing operations $ 786   $ 741   6 %
 
Net Earnings (loss) from discontinued operations, as reported $ (231 ) $ 40
Add: Net adjustment from restructuring charges and related costs (1) 2
Add: Net impairment on European business (4) 263
Add: Tax expense on book and tax differences (4) 18    
Adjusted Net earnings from discontinued operations $ 50   $ 42   19 %
Adjusted Net earnings attributable to Campbell Soup Company $ 836   $ 783   7 %
 
Diluted earnings per share – continuing operations, as reported $ 2.17 $ 2.29
Add: Net adjustment from restructuring charges and related costs (1) .28 .01
Add: Net adjustment from acquisition transaction costs (2) .02   .01  
Adjusted Diluted earnings per share – continuing operations* $ 2.48   $ 2.31   7 %
 
Diluted earnings (loss) per share – discontinued operations, as
reported
$ (.73 ) $ .12
Add: Net adjustment from restructuring charges and related costs (1) .01
Add: Impairment on European business (4) .83
Add: Tax expense on book and tax differences (4) $ .06   $  
Adjusted Diluted earnings per share – discontinued operations $ .16   $ .13   23 %
 
Diluted net earnings per share attributable to Campbell Soup
Company, as reported
$ 1.44 $ 2.41
Add: Net adjustment from restructuring charges and related costs (1) .28 .02
Add: Net adjustment from acquisition transaction costs (2) .02 .01
Add: Net impairment on European business (4) .83
Add: Tax expense on book and tax differences (4) .06    
Adjusted Diluted net earnings per share attributable to Campbell
Soup Company*
$ 2.64   $ 2.44   8 %
 
*The sum of the individual per share amounts does not add due to
rounding.
   

Adjusted Earnings Before Interest and
Taxes on a Combined Basis (Continuing Operations and Discontinued
Operations)

 
Three Months Ended
(millions, except per share amounts) July 28, 2013   July 29, 2012 Percent Change
Adjusted Earnings before interest and taxes

$

208   $ 208  
Earnings (loss) before interest and taxes included in discontinued
operations
(387 )
Add: Impairment on European business (4)   396      
Adjusted Earnings before interest and taxes – discontinued
operations

$

9  

$

 
Adjusted Combined earnings before interest and taxes

$

217

 

$

208

  4 %
 
 
Year Ended
(millions, except per share amounts) July 28, 2013 July 29, 2012 Percent Change
Adjusted Earnings before interest and taxes $ 1,232   $ 1,167  
Earnings (loss) before interest and taxes included in discontinued
operations
(331 ) 57
Add: Restructuring charges (1) 3
Add: Impairment on European business (4)   396      
Adjusted Earnings before interest and taxes – discontinued
operations

$

65  

$

60  
Adjusted Combined earnings before interest and taxes

$

1,297

 

$

1,227

  6 %
 
 

Adjusted Earnings Before Interest and
Taxes Excluding Acquisitions

 
Three Months Ended
(millions, except per share amounts) July 28, 2013 July 29, 2012 Percent Change
Adjusted Earnings before interest and taxes

$

208

$ 208
Deduct: Bolthouse and Plum earnings (3)   (14 )    
Adjusted Earnings before interest and taxes, less acquisition $ 194   $ 208   (7 )%
 
 
Year-to-Date
(millions, except per share amounts) July 28, 2013 July 29, 2012 Percent Change
Adjusted Earnings before interest and taxes $ 1,232 $ 1,167
Deduct: Bolthouse and Plum earnings (3)   (60 )    
Adjusted Earnings before interest and taxes, less acquisition $ 1,172   $ 1,167   %

Source: Campbell Soup Company

Campbell Soup Company
Carla Burigatto (Media)
856-342-3737
[email protected]
or
Jennifer
Driscoll (Analysts/Investors)
856-342-6081
[email protected]