• Campbell Reaffirms Fiscal 2019 Guidance
• Net Sales Increased 24 Percent Reflecting Impact of Recently Completed
  Acquisitions; Organic Sales Comparable to the Prior Year
• Earnings Per Share (EPS) Loss of $0.20 Reflecting Impairment Charges
  Related to Campbell Fresh Segment; Adjusted EPS of $0.77

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 27, 2019–
Campbell Soup Company (NYSE:CPB) today reported its
second-quarter results for fiscal 2019.

			Three Months Ended									Six Months Ended
($ in millions, except per share)			Jan. 27, 2019			Jan. 28, 2018			% Change			Jan. 27, 2019			Jan. 28, 2018			% Change
Net Sales
As Reported (GAAP)			$2,713			$2,180			24%			$5,407			$4,341			25%
Organic									– %									(2)%
Earnings Before Interest and Taxes (EBIT)
As Reported (GAAP)			$19*			$243			n/m			$369			$655			(44)%
Adjusted			$399			$402			(1)%			$811			$819			(1)%
Diluted Earnings Per Share
As Reported (GAAP)			($0.20)*			$0.95			n/m			$0.45			$1.85			n/m
Adjusted			$0.77			$1.00			(23)%			$1.57			$1.91			(18)%

n/m – not meaningful

* The current quarter included pre-tax impairment charges of $346 million, or $0.88 per share, related to the Campbell Fresh segment.

Note: A detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information is included at the end of this news release.

CEO Comments

Mark Clouse, Campbell’s President and CEO stated, “I am pleased that,
for the second consecutive quarter, we delivered sales and earnings
performance in line with our expectations, enabling us to reaffirm our
full-year guidance for fiscal 2019.

“During the quarter, we continued to make progress against key strategic
initiatives. Our efforts to stabilize our core business, integrate
Snyder’s-Lance, deliver our cost savings agenda and focus and optimize
the portfolio are all on track. Over time, these actions will enable us
to increase investments in our core businesses while significantly
reducing debt and creating meaningful value for shareholders. While we
have made steady progress, there is much more work to be done to fully
unlock the potential of our business.

“Since joining the team and immersing myself in Campbell’s business, I
am confident in the plans in place to address our near-in challenges and
opportunities, with the commitment to set a clear strategic roadmap for
the future. I am excited by the opportunities to build upon the
company’s solid foundation of iconic brands, talented employees, engaged
customers and loyal consumers. It is upon these strengths that we will
continue to create a compelling plan that delivers profitable and
sustainable growth, supported by a reenergized culture focused on
accountability, performance and consumer-driven marketing and
innovation.”

Items Impacting Comparability

The table below presents a summary of items impacting comparability in
each period. A detailed reconciliation of the reported (GAAP) financial
information to the adjusted information is included at the end of this
news release.

			Diluted Earnings Per Share
			Three Months Ended								Six Months Ended
			Jan. 27, 2019				Jan. 28, 2018				Jan. 27, 2019			Jan. 28, 2018
As Reported (GAAP)			($0.20	)			$0.95				$0.45			$1.85
Impairment charges related to the Campbell Fresh segment			$0.88				$0.25				$0.91			$0.25
Restructuring charges, implementation costs and other related costs associated with cost savings initiatives			$0.06				$0.15				$0.18			$0.19
Costs associated with planned divestitures			$0.03				–				$0.03			–
Transaction costs related to the acquisition of Snyder’s-Lance, Inc.			–				$0.06				–			$0.06
Pension and postretirement benefit mark-to-market adjustments			–				–				–			($0.03	)
Nonrecurring net tax benefit related to U.S. Tax Reform			$0.01				($0.41	)			$0.01			($0.41	)
Adjusted			$0.77*				$1.00				$1.57*			$1.91
* Numbers do not add due to rounding.

Second-Quarter Results

Sales increased 24 percent to $2.7 billion reflecting a 26-point benefit
from the recent acquisitions of Snyder’s-Lance and Pacific Foods.
Organic sales, which exclude the negative impact of currency
translation, were comparable to the prior year as gains in Global
Biscuits and Snacks were offset by declines in Campbell Fresh and Meals
and Beverages. Sales in the quarter benefited by approximately 50 basis
points from the change in revenue recognition adopted in fiscal 2019,
which impacts the timing of expense related to promotional programs. The
annual impact is not expected to be material.

Gross margin decreased from 35.1 percent to 26.3 percent. Excluding
items impacting comparability, adjusted gross margin decreased 4.3
percentage points to 30.9 percent, including a 200-basis-point dilutive
mix impact from the recent acquisitions. The remaining decline in
adjusted gross margin was driven primarily by cost inflation and higher
supply chain costs, as well as higher promotional investment, offset
partly by productivity improvements and the benefits from cost savings
initiatives. The increase in supply chain costs was driven primarily by
higher warehousing and transportation costs, the majority of which were
principally one-time in nature.

Marketing and selling expenses increased 16 percent to $264 million
reflecting a 22-point increase from the inclusion of the recent
acquisitions. Excluding items impacting comparability in the current
year and the impact of the recent acquisitions, adjusted marketing and
selling expenses decreased driven primarily by lower marketing overhead
and selling expenses, including the benefits from cost savings
initiatives. Administrative expenses increased 9 percent to $180
million. Excluding items impacting comparability, adjusted
administrative expenses increased 15 percent to $160 million primarily
due to the inclusion of the recent acquisitions.

Other expenses were $226 million as compared to $70 million in the prior
year. Excluding items impacting comparability, other income decreased
from $29 million in the prior year to $5 million reflecting amortization
of intangible assets associated with recent acquisitions and lower gains
on investments.

As reported EBIT was $19 million. Excluding items impacting
comparability, adjusted EBIT decreased 1 percent to $399 million driven
by declines in the base business, offset mostly by incremental earnings
from our recent acquisitions. The change in revenue recognition had a
favorable 3-point impact in the quarter.

Net interest expense was $92 million compared to $32 million in the
prior year reflecting higher levels of debt associated with the recent
acquisitions and higher average interest rates on the debt portfolio.
The tax rate was 19.2 percent as compared to a negative 35.1 percent in
the prior year. Excluding items impacting comparability, the adjusted
tax rate increased 5.2 percentage points from 18.9 percent to 24.1
percent. The adjusted tax rate in the prior-year quarter benefited from
a year-to-date true-up to reflect the lower U.S. federal tax rate as
part of the Tax Cuts and Jobs Act enacted in December 2017.

The company reported a loss of $0.20 per share. Excluding items
impacting comparability, adjusted EPS decreased 23 percent to $0.77 per
share reflecting EBIT declines in the base business, a higher adjusted
tax rate, and the expected dilutive impact from the acquisitions of
Snyder’s-Lance and Pacific Foods. The change in revenue recognition had
a favorable $0.03 per share impact in the quarter.

First-Half Results

Sales increased 25 percent to $5.4 billion reflecting a 27-point benefit
from the recent acquisitions of Snyder’s-Lance and Pacific Foods.
Organic sales declined 2 percent.

As reported EBIT decreased 44 percent to $369 million. Excluding items
impacting comparability, adjusted EBIT decreased 1 percent to $811
million reflecting declines in the base business offset mostly by
incremental earnings from recent acquisitions.

Net interest expense was $185 million compared to $62 million in the
prior year reflecting higher levels of debt associated with the recent
acquisitions and higher average interest rates on the debt portfolio.
The tax rate increased from 5.6 percent to 26.6 percent. Excluding items
impacting comparability, the adjusted tax rate increased 0.5 percentage
points from 23.8 percent to 24.3 percent.

The company reported EPS of $0.45. Excluding items impacting
comparability, adjusted EPS decreased 18 percent to $1.57 per share
primarily reflecting adjusted EBIT declines in the base business.

Cash flow from operations increased to $846 million from $660 million a
year ago reflecting significant improvements from the company’s working
capital management efforts and wrapping payments last year on hedges
associated with an anticipated debt issuance, offset partly by lower
cash earnings. In line with the company’s commitment to returning value
to shareholders, during the first half of fiscal 2019, the company paid
$212 million of cash dividends reflecting the quarterly dividend rate of
$0.35 per share.

Campbell Reaffirms Fiscal 2019 Guidance

Following second-quarter results, Campbell continues to expect full-year
performance to be consistent with guidance provided on Aug. 30, 2018. As
previously announced, given the strategy to pursue divestitures, the
company has provided an outlook for fiscal 2019 based on the company’s
existing portfolio of businesses, as well as on a pro forma basis
assuming the planned divestitures are completed as of the beginning of
fiscal 2019. This fiscal 2019 guidance and pro forma, as shown in the
table below, include the impact of the Snyder’s-Lance and Pacific Foods
acquisitions and an estimated 1 percentage-point negative impact from
currency translation.

($ in millions, except per share)
			2018 Results			2019 Guidance Pre-Divestitures			2019 Pro Forma Assuming Divestitures
Net Sales			$8,685			$9,975 to $10,100			$7,925 to $8,050
Incremental Net Sales from Snyder’s-Lance and Pacific Foods						$1,500 to $1,550			$1,500 to $1,550
Adjusted EBIT			$1,408*			$1,370 to $1,410			$1,230 to $1,270
Adjusted EPS			$2.87*			$2.45 to $2.53			$2.40 to $2.50

* Adjusted – refer to the detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information at the end of this news release.

Note: A non-GAAP reconciliation is not provided for 2019 guidance or 2019 pro forma since certain items are not estimable, such as pension and postretirement mark-to-market adjustments, and these items are not considered to reflect the company’s ongoing business results. The pro forma scenario is provided for illustrative purposes to provide approximate impact of potential divestitures as if they occurred at the beginning of fiscal 2019 and is based on the use of estimated sales proceeds.

Cost Savings Program

In the second quarter of fiscal 2019, Campbell achieved $50 million in
savings under its multi-year cost savings program, inclusive of
Snyder’s-Lance synergies, bringing total program-to-date savings to $550
million. Year-to-date savings of $95 million through the first half of
fiscal 2019 are pacing slightly ahead of schedule, helping to offset
other cost pressures. As previously announced, the company expects to
deliver cumulative annualized savings of $945 million by the end of
fiscal 2022.

Segment Operating Review

An analysis of net sales and operating earnings by reportable segment
follows:

Three Months Ended Jan. 27, 2019 ($ in millions)
			Meals and Beverages			Global Biscuits and Snacks			Campbell Fresh			Total*
Net Sales, as Reported			$1,230			$1,243			$239			$2,713**
Volume and Mix			-%			3%			(7)%			-%
Price and Sales Allowances			-%			1%			-%			-%
Promotional Spending			(1)%			(1)%			-%			(1)%
Organic Net Sales			(1)%			3%			(7)%			-%
Currency			(1)%			(2)%			-%			(1)%
Acquisitions			3%			75%			-%			26%
% Change vs. Prior Year			1%			76%			(7)%			24%
Segment Operating Earnings			$255			$185			($14)
% Change vs. Prior Year			(10)%			35%			n/m

n/m – not meaningful

* Numbers do not add due to rounding.

** Includes Corporate

Note: A detailed reconciliation of the reported (GAAP) net sales to organic net sales is included at the end of this news release.

Six Months Ended Jan. 27, 2019 ($ in millions)
			Meals and Beverages			Global Biscuits and Snacks*			Campbell Fresh			Total*
Net Sales, as Reported			$2,474			$2,461			$471			$5,407**
Volume and Mix			(1)%			1%			(4)%			(1)%
Price and Sales Allowances			-%			1%			-%			-%
Promotional Spending			(2)%			(1)%			-%			(1)%
Organic Net Sales			(3)%			1%			(4)%			(2)%
Currency			-%			(2)%			-%			(1)%
Acquisitions			4%			78%			-%			27%
% Change vs. Prior Year			1%			76%			(4)%			25%
Segment Operating Earnings			$549			$339			($17)
% Change vs. Prior Year			(11)%			33%			-%

* Numbers do not add due to rounding.

** Includes Corporate

Note: A detailed reconciliation of the reported (GAAP) net sales to organic net sales is included at the end of this news release.

Meals and Beverages

Sales in the quarter increased 1 percent to $1.230 billion. Organic
sales decreased 1 percent reflecting mixed results, as increases in
beverages behind consumption gains in V8 vegetable juice and
V8 Energy were more than offset by declines in Plum, Canada and Prego
pasta sauces. Excluding the benefit from the acquisition of Pacific
Foods, sales of U.S. soup were comparable to the prior year with gains
in ready-to-serve soups and broth, offset by declines in condensed soups.

Segment operating earnings decreased 10 percent to $255 million. The
decrease was driven primarily by higher levels of cost inflation and
higher warehousing and transportation costs, which began to moderate in
January, as well as higher promotional spending, offset partly by lower
marketing and selling expenses.

Global Biscuits and Snacks

Sales in the quarter increased 76 percent to $1.243 billion. Excluding
the benefit from the acquisition of Snyder’s-Lance and the negative
impact of currency translation, organic sales increased 3 percent. This
performance reflects continued growth in Pepperidge Farm, driven by
solid consumption gains in Pepperidge Farm fresh bakery products
and Goldfish crackers, as well as growth in Arnott’s
biscuits, fueled by innovation. Sales of Pepperidge Farm have now grown
in 17 consecutive quarters.

Segment operating earnings increased 35 percent to $185 million,
reflecting a 34-point benefit from the acquisition of Snyder’s-Lance.
Excluding the impact of the acquisition, segment operating earnings
increased slightly driven primarily by volume gains, offset partly by
higher levels of cost inflation.

Campbell Fresh

Overall performance for the Campbell Fresh segment was consistent with
expectations. Sales in the quarter decreased 7 percent to $239 million
driven by expected declines in refrigerated soup, reflecting the
previously announced plans of certain major private label customers to
insource production in 2019, as well as declines in Bolthouse Farms
refrigerated beverages and Garden Fresh Gourmet, offset partly by gains
in carrots.

Segment operating loss was $14 million compared to a loss of $11 million
in the prior year. The $3 million year-over-year decrease was primarily
due to the decline in refrigerated soup volume, offset partly by
improved operational efficiency in the Bolthouse Farms business.

Corporate

Corporate in the second quarter of fiscal 2019 included non-cash
impairment charges of $346 million related to the Campbell Fresh
segment, charges related to cost savings initiatives of $22 million, and
costs associated with planned divestitures of $10 million. Corporate in
the second quarter of fiscal 2018 included a non-cash impairment charge
of $75 million related to the Campbell Fresh segment, charges related to
cost savings initiatives of $27 million, and acquisition transaction
costs of $24 million. The remaining increase in expenses primarily
reflects the wrapping of gains on investments in the prior-year quarter
and higher administrative expenses.

Conference Call and Webcast

Campbell will host a conference call to discuss these results today at
8:30 a.m. Eastern Time. To join, dial +1 (409) 350-3941. The access code
is 7291448. Access to a live webcast of the call with accompanying
slides, as well as a replay of the call, will be available at investor.campbellsoupcompany.com.
A recording of the call will also be available until midnight on Mar.
13, 2019, at +1 (404) 537-3406. The access code for the replay is
7291448.

Reportable Segments

Campbell Soup Company earnings results are reported as follows:

Meals and Beverages includes the retail and food service
businesses in the U.S. and Canada. The segment includes the following
products: Campbell’s condensed and ready-to-serve soups; Swanson
broth and stocks; Pacific broth, soups, non-dairy beverages and
other simple meals; Prego pasta sauces; Pace Mexican
sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson
canned poultry; Plum food and snacks; V8 juices and
beverages; and, Campbell’s tomato juice. Beginning in fiscal
2019, the segment also includes the simple meals and shelf-stable
beverages business in Latin America. Prior to fiscal 2019, the business
in Latin America was managed as part of the Global Biscuits and Snacks
segment. Prior-period segment results have been adjusted retrospectively
to reflect this change.

Global Biscuits and Snacks includes the U.S. snacks portfolio
consisting of Pepperidge Farm cookies, crackers, bakery and frozen
products in U.S. retail, and Snyder’s-Lance pretzels, sandwich crackers,
potato chips, tortilla chips and other snacking products. The segment
also includes Arnott’s biscuits in Australia and Asia Pacific, Kelsen
cookies globally, and the simple meals and shelf-stable beverages
business in Australia and Asia Pacific.

Campbell Fresh includes Bolthouse Farms fresh carrots, carrot
ingredients, refrigerated beverages and refrigerated salad dressings;
Garden Fresh Gourmet salsa, hummus, dips and tortilla chips; and, the
U.S. refrigerated soup business.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” For generations, people have trusted
Campbell to provide authentic, flavorful and affordable snacks, soups
and simple meals, and beverages. Founded in 1869, Campbell has a
heritage of giving back and acting as a good steward of the planet’s
natural resources. The company is a member of the Standard and Poor’s
500 and the Dow Jones Sustainability Indexes. For more information,
visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

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 the company’s business or financial results. These
forward-looking statements, including any statements made regarding
sales, EBIT and EPS guidance, 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 company’s ability to execute
on and realize the expected benefits from the actions it intends to take
as a result of its recent strategy and portfolio review; (2) the ability
to differentiate its products and protect its category leading
positions, especially in soup; (3) the ability to complete and to
realize the projected benefits of planned divestitures and other
business portfolio changes; (4) the ability to realize the projected
benefits, including cost synergies, from the recent acquisitions of
Snyder’s-Lance and Pacific Foods; (5) the ability to realize projected
cost savings and benefits from its efficiency and/or restructuring
initiatives; (6) the company’s indebtedness and ability to pay such
indebtedness; (7) disruptions to the company’s supply chain, including
fluctuations in the supply of and inflation in energy and raw and
packaging materials cost; (8) the company’s ability to manage changes to
its organizational structure and/or business processes, including
selling, distribution, manufacturing and information management systems
or processes; (9) the impact of strong competitive responses to the
company’s efforts to leverage its brand power with product innovation,
promotional programs and new advertising; (10) the risks associated with
trade and consumer acceptance of product improvements, shelving
initiatives, new products and pricing and promotional strategies; (11)
changes in consumer demand for the company’s products and favorable
perception of the company’s brands; (12) changing inventory management
practices by certain of the company’s key customers; (13) a changing
customer landscape, with value and e-commerce retailers expanding their
market presence, while certain of the company’s key customers maintain
significance to the company’s business; (14) product quality and safety
issues, including recalls and product liabilities; (15) the costs,
disruption and diversion of management’s attention associated with
campaigns commenced by activist investors; (16) the uncertainties of
litigation and regulatory actions against the company; (17) the possible
disruption to the independent contractor distribution models used by
certain of the company’s businesses, including as a result of litigation
or regulatory actions affecting their independent contractor
classification; (18) the impact of non-U.S. operations, including trade
restrictions, public corruption and compliance with foreign laws and
regulations; (19) impairment to goodwill or other intangible assets;
(20) the company’s ability to protect its intellectual property rights;
(21) increased liabilities and costs related to the company’s defined
benefit pension plans; (22) a material failure in or breach of the
company’s information technology systems; (23) the company’s ability to
attract and retain key talent; (24) changes in currency exchange rates,
tax rates, interest rates, debt and equity markets, inflation rates,
economic conditions, law, regulation and other external factors; (25)
unforeseen business disruptions in one or more of the company’s markets
due to political instability, civil disobedience, terrorism, armed
hostilities, extreme weather conditions, natural disasters or other
calamities; and (26) 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 (unaudited) (millions, except per share amounts)
			Three Months Ended
			January 27, 2019					January 28, 2018
Net sales			$	2,713				$	2,180
Costs and expenses
Cost of products sold				1,999					1,414
Marketing and selling expenses				264					228
Administrative expenses				180					165
Research and development expenses				23					27
Other expenses / (income)				226					70
Restructuring charges				2					33
Total costs and expenses				2,694					1,937
Earnings before interest and taxes				19					243
Interest, net				92					32
Earnings (loss) before taxes				(73	)				211
Taxes on earnings				(14	)				(74	)
Net earnings (loss)				(59	)				285
Net loss attributable to noncontrolling interests				—					—
Net earnings (loss) attributable to Campbell Soup Company			$	(59	)			$	285
Per share – basic
Net earnings (loss) attributable to Campbell Soup Company			$	(.20	)			$	.95
Dividends			$	.35				$	.35
Weighted average shares outstanding – basic				301					301
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company			$	(.20	)			$	.95
Weighted average shares outstanding – assuming dilution				301					301

CAMPBELL SOUP COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) (millions, except per share amounts)
			Six Months Ended
			January 27, 2019				January 28, 2018
Net sales			$	5,407			$	4,341
Costs and expenses
Cost of products sold				3,869				2,792
Marketing and selling expenses				512				447
Administrative expenses				356				314
Research and development expenses				50				57
Other expenses / (income)				230				41
Restructuring charges				21				35
Total costs and expenses				5,038				3,686
Earnings before interest and taxes				369				655
Interest, net				185				62
Earnings before taxes				184				593
Taxes on earnings				49				33
Net earnings				135				560
Net loss attributable to noncontrolling interests				—				—
Net earnings attributable to Campbell Soup Company			$	135			$	560
Per share – basic
Net earnings attributable to Campbell Soup Company			$	.45			$	1.86
Dividends			$	.70			$	.70
Weighted average shares outstanding – basic				301				301
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company			$	.45			$	1.85
Weighted average shares outstanding – assuming dilution				302				302

CAMPBELL SOUP COMPANY CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited) (millions, except per share amounts)
			Three Months Ended
			January 27, 2019					January 28, 2018					Percent Change
Sales
Contributions:
Meals and Beverages			$	1,230				$	1,214				1	%
Global Biscuits and Snacks				1,243					708				76	%
Campbell Fresh				239					257				(7	)%
Corporate				1					1				—	%
Total sales			$	2,713				$	2,180				24	%
Earnings
Contributions:
Meals and Beverages			$	255				$	284				(10	)%
Global Biscuits and Snacks				185					137				35	%
Campbell Fresh				(14	)				(11	)			n/m
Total operating earnings				426					410				4	%
Corporate				(405	)				(134	)
Restructuring charges				(2	)				(33	)
Earnings before interest and taxes				19					243				(92	)%
Interest, net				92					32
Taxes on earnings				(14	)				(74	)
Net earnings (loss)				(59	)				285				n/m
Net loss attributable to noncontrolling interests				—					—
Net earnings (loss) attributable to Campbell Soup Company			$	(59	)			$	285				n/m
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company			$	(.20	)			$	.95				n/m

n/m – not meaningful

Beginning in fiscal 2019, the business in Latin America is managed as part of the Meals and Beverages segment. In fiscal 2018, the business in Latin America was managed as part of the Global Biscuits and Snacks segment. Segment results have been adjusted retrospectively to reflect this change.

CAMPBELL SOUP COMPANY CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited) (millions, except per share amounts)
			Six Months Ended
			January 27, 2019					January 28, 2018					Percent Change
Sales
Contributions:
Meals and Beverages			$	2,474				$	2,453				1	%
Global Biscuits and Snacks				2,461					1,396				76	%
Campbell Fresh				471					491				(4	)%
Corporate				1					1				—	%
Total sales			$	5,407				$	4,341				25	%
Earnings
Contributions:
Meals and Beverages			$	549				$	615				(11	)%
Global Biscuits and Snacks				339					254				33	%
Campbell Fresh				(17	)				(17	)			—	%
Total operating earnings				871					852				2	%
Corporate				(481	)				(162	)
Restructuring charges				(21	)				(35	)
Earnings before interest and taxes				369					655				(44	)%
Interest, net				185					62
Taxes on earnings				49					33
Net earnings				135					560				(76	)%
Net loss attributable to noncontrolling interests				—					—
Net earnings attributable to Campbell Soup Company			$	135				$	560				(76	)%
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company			$	.45				$	1.85				(76	)%

Beginning in fiscal 2019, the business in Latin America is managed as part of the Meals and Beverages segment. In fiscal 2018, the business in Latin America was managed as part of the Global Biscuits and Snacks segment. Segment results have been adjusted retrospectively to reflect this change.

CAMPBELL SOUP COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (millions)
			January 27, 2019				January 28, 2018
Current assets			$	2,295			$	1,928
Plant assets, net				3,036				2,518
Intangible assets, net				8,473				3,744
Other assets				220				146
Total assets			$	14,024			$	8,336
Current liabilities			$	3,299			$	3,012
Long-term debt				8,003				2,247
Other liabilities				1,444				1,128
Total equity				1,278				1,949
Total liabilities and equity			$	14,024			$	8,336
Total debt			$	9,457			$	3,906
Cash and cash equivalents			$	203			$	196

CAMPBELL SOUP COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (millions)
			Six Months Ended
			January 27, 2019					January 28, 2018
Cash flows from operating activities:
Net earnings			$	135				$	560
Adjustments to reconcile net earnings to operating cash flow
Impairment charges				360					75
Restructuring charges				21					35
Stock-based compensation				31					32
Noncurrent income taxes				—					52
Pension and postretirement benefit income				(29	)				(32	)
Depreciation and amortization				241					161
Deferred income taxes				(40	)				(106	)
Other, net				18					18
Changes in working capital, net of acquisition
Accounts receivable				(150	)				(113	)
Inventories				122					84
Prepaid assets				(2	)				(25	)
Accounts payable and accrued liabilities				170					(10	)
Net payments of hedging activities				(5	)				(31	)
Other				(26	)				(40	)
Net cash provided by operating activities				846					660
Cash flows from investing activities:
Purchases of plant assets				(198	)				(132	)
Purchases of route businesses				(23	)				—
Sales of route businesses				25					—
Businesses acquired, net of cash acquired				(18	)				(682	)
Other, net				11					(11	)
Net cash used in investing activities				(203	)				(825	)
Cash flows from financing activities:
Short-term borrowings				2,831					5,052
Short-term repayments				(3,274	)				(4,673	)
Long-term repayments				—					(16	)
Dividends paid				(212	)				(216	)
Treasury stock purchases				—					(86	)
Payments related to tax withholding for stock-based compensation				(7	)				(23	)
Payments of debt issuance costs				(1	)				—
Net cash provided by (used in) financing activities				(663	)				38
Effect of exchange rate changes on cash				(3	)				4
Net change in cash and cash equivalents				(23	)				(123	)
Cash and cash equivalents — beginning of period				226					319
Cash and cash equivalents — end of period			$	203				$	196

Reconciliation of GAAP to Non-GAAP Financial Measures
Second
Quarter Ended January 27, 2019

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. Management believes that also presenting
certain non-GAAP financial measures provides additional information to
facilitate comparison of the company’s historical operating results and
trends in its underlying operating results, and provides transparency on
how the company evaluates its business. Management uses these non-GAAP
financial measures in making financial, operating and planning decisions
and in evaluating the company’s performance.

Organic Net Sales

Organic net sales are net sales excluding the impact of currency and
acquisitions. Management believes that excluding these items, which are
not part of the ongoing business, improves the comparability of
year-to-year results. A reconciliation of net sales as reported to
organic net sales follows.

Three Months Ended
			January 27, 2019																	January 28, 2018				% Change
(millions)			Net Sales, as Reported				Impact of Currency				Impact of Acquisitions					Organic Net Sales				Net Sales, as Reported				Net Sales, as Reported				Organic Net Sales
Meals and Beverages			$	1,230			$	7			$	(31	)			$	1,206			$	1,214			1	%			(1	)%
Global Biscuits and Snacks				1,243				15				(529	)				729				708			76	%			3	%
Campbell Fresh				239				—				—					239				257			(7	)%			(7	)%
Corporate				1				—				—					1				1			—	%			—	%
Total Net Sales			$	2,713			$	22			$	(560	)			$	2,175			$	2,180			24	%			—	%
Six Months Ended
			January 27, 2019																	January 28, 2018				% Change
(millions)			Net Sales, as Reported				Impact of Currency				Impact of Acquisitions					Organic Net Sales				Net Sales, as Reported				Net Sales, as Reported				Organic Net Sales
Meals and Beverages			$	2,474			$	12			$	(100	)			$	2,386			$	2,453			1	%			(3	)%
Global Biscuits and Snacks				2,461				32				(1,083	)				1,410				1,396			76	%			1	%
Campbell Fresh				471				—				—					471				491			(4	)%			(4	)%
Corporate				1				—				—					1				1			—	%			—	%
Total Net Sales			$	5,407			$	44			$	(1,183	)			$	4,268			$	4,341			25	%			(2	)%

Items Impacting Earnings

The company believes that financial information excluding certain items
that are not considered to reflect the ongoing operating results, such
as those listed below, improves the comparability of year-to-year
results. Consequently, the company believes that investors may be able
to better understand its results excluding these items.

The following items impacted earnings:

		(1)		In fiscal 2015, the company implemented initiatives to reduce costs and to streamline its organizational structure. In fiscal 2017, the company expanded these cost savings initiatives by further optimizing its supply chain network, primarily in North America, continuing to evolve its operating model to drive efficiencies, and more fully integrating its recent acquisitions. In January 2018, as part of the expanded initiatives, the company authorized additional costs to improve the operational efficiency of its thermal supply chain network in North America by closing its manufacturing facility in Toronto, Ontario, and to optimize its information technology infrastructure by migrating certain applications to the latest cloud technology platform. In August 2018, the company announced that it will continue to streamline its organization, expand its zero-based budgeting efforts and optimize its manufacturing network. In fiscal 2019, the company began to include costs associated with the Snyder’s-Lance cost transformation program and integration with these initiatives.
				In the second quarter of fiscal 2019, the company recorded Restructuring charges of $2 million and implementation costs and other related costs of $10 million in Administrative expenses, $9 million in Cost of products sold, $2 million in Marketing and selling expenses, and $1 million in Research and development expenses (aggregate impact of $18 million after tax, or $.06 per share) related to these initiatives. In the six-month period of fiscal 2019, the company recorded Restructuring charges of $21 million and implementation costs and other related costs of $23 million in Administrative expenses, $21 million in Cost of products sold, $4 million in Marketing and selling expenses, and $1 million in Research and development expenses (aggregate impact of $53 million after tax, or $.18 per share) related to these initiatives. In the second quarter of fiscal 2018, the company recorded Restructuring charges of $33 million and implementation costs and other related costs of $26 million in Administrative expenses and $1 million in Cost of products sold (aggregate impact of $46 million after tax, or $.15 per share) related to these initiatives. In the six-month period of fiscal 2018, the company recorded Restructuring charges of $35 million and implementation costs and other related costs of $38 million in Administrative expenses and $6 million in Cost of products sold (aggregate impact of $58 million after tax, or $.19 per share) related to these initiatives. For the year ended July 29, 2018, the company recorded Restructuring charges of $49 million and implementation costs and other related costs of $88 million in Administrative expenses, $45 million in Cost of products sold, and $3 million in Marketing and selling expenses (aggregate impact of $136 million after tax, or $.45 per share) related to these initiatives.
		(2)		In the second quarter of fiscal 2019, interim impairment assessments were performed on the intangible and tangible assets within Campbell Fresh, which includes Garden Fresh Gourmet, Bolthouse Farms carrot and carrot ingredients, and Bolthouse Farms refrigerated beverages and salad dressings, as the company continues to pursue the divestiture of these businesses. The company revised its future outlook for earnings and cash flows for each of these businesses as the divestiture process progressed.
				The company recorded non-cash impairment charges of $104 million on the tangible assets and $73 million on the intangible assets of Bolthouse Farms carrot and carrot ingredients; $96 million on the intangible assets and $9 million on the tangible assets of Bolthouse Farms refrigerated beverages and salad dressings; and $62 million on the intangible assets and $2 million on the tangible assets of Garden Fresh Gourmet. The aggregate impact of the impairment charges was $346 million, of which $115 million was recorded in Cost of products sold and $231 in Other expenses / (income), ($264 million after tax, or $.88 per share). In the first quarter of fiscal 2019, the company recorded a non-cash impairment charge of $14 million in Cost of products sold ($11 million after tax, or $.04 per share) on its U.S. refrigerated soup plant assets. For the six-month period of fiscal 2019, the total non-cash impairment charges recorded were $360 million, of which $129 million was recorded in Cost of products sold and $231 million in Other expenses / (income), ($275 million after tax, or $.91 per share).
				In the second quarter of fiscal 2018, the company performed an interim impairment assessment on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit as operating performance was below expectations. The company revised its outlook for future earnings and cash flows and recorded a non-cash impairment charge of $75 million in Other expenses / (income) ($74 million after tax, or $.25 per share).
				In the third quarter of fiscal 2018, the company performed interim impairment assessments within Campbell Fresh on the deli reporting unit, which includes Garden Fresh Gourmet and the U.S. refrigerated soup business, and the Bolthouse Farms refrigerated beverages and salad dressings reporting unit. Within the deli unit, the company revised its long-term outlook due to the anticipated loss of refrigerated soup business with certain private label customers, as well as the performance of the business. In addition, the operating performance of the Bolthouse Farms refrigerated beverages and salad dressings reporting unit was below expectations. The company revised its long-term outlook for future earnings and cash flows for each of these reporting units. The company recorded a non-cash impairment charge of $11 million on the tangible assets and $94 million on the intangible assets ($80 million after tax, or $.27 per share) of the deli reporting unit, and a non-cash impairment charge of $514 million ($417 million after tax, or $1.39 per share) related to the intangible assets of the Bolthouse Farms refrigerated beverages and salad dressings reporting unit. The aggregate impact of the impairment charges was $619 million, of which $11 million was recorded in Cost of products sold and $608 million in Other expenses / (income), ($497 million after tax, or $1.65 per share).
				In the fourth quarter of fiscal 2018, the company performed an impairment assessment on the Plum trademark. In fiscal 2018, sales and operating performance were well below expectations due in part to competitive pressure and reduced margins. In the fourth quarter of fiscal 2018, as part of a strategic review initiated by a new leadership team and based on recent performance, the company lowered its long-term outlook for future sales. The company recorded a non-cash impairment charge of $54 million ($41 million after tax, or $.14 per share) in Other expenses / (income).
				For the year ended July 29, 2018, the total non-cash impairment charges recorded were $748 million, of which $11 million was recorded in Cost of products sold and $737 million in Other expenses / (income), ($612 million after tax, or $2.03 per share.
		(3)		In the first quarter of fiscal 2019, the company announced its intent to divest its Campbell International and Campbell Fresh businesses. In the second quarter of fiscal 2019, the company incurred costs of $10 million recorded in Administrative expenses ($8 million after tax, or $.03 per share) associated with the planned divestitures. In the six-month period of fiscal 2019, the company incurred costs of $12 million recorded in Administrative expenses ($9 million after tax, or $.03 per share) associated with the planned divestitures.
		(4)		In fiscal 2018 and 2019, the company reflected the impact of taxes on the enactment of the Tax Cuts and Jobs Act that was signed into law in December 2017. In the second quarter of fiscal 2019, the company recorded a tax charge of $2 million ($.01 per share) related to a transition tax on unremitted foreign earnings. In the second quarter of fiscal 2018, the company recorded a tax benefit of $183 million due to the remeasurement of deferred tax assets and liabilities, and a tax charge of $59 million related to a transition tax on unremitted foreign earnings. The net impact was a tax benefit of $124 million ($.41 per share). For the year ended July 29, 2018, the company recorded a tax benefit of $179 million due to the remeasurement of deferred tax assets and liabilities, and a tax charge of $53 million related to the transition tax on unremitted foreign earnings. The net impact was a tax benefit of $126 million ($.42 per share).
		(5)		In the six-month period of fiscal 2018, the company incurred gains of $14 million in Other expenses / (income) ($10 million after tax, or $.03 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. For the year ended July 29, 2018, the company incurred gains of $136 million in Other expenses / (income) ($103 million after tax, or $.34 per share) associated with mark-to-market and curtailment adjustments for defined benefit pension and postretirement plans.
		(6)		In the second quarter of fiscal 2018, the company announced its intent to acquire Snyder’s-Lance, Inc. and on March 26, 2018, the acquisition closed. In the second quarter of fiscal 2018, the company incurred transaction costs of $24 million recorded in Other expenses / (income) ($19 million after tax, or $.06 per share). For the year ended July 29, 2018, the company incurred transaction costs of $53 million recorded in Other expenses / (income), $42 million in Cost of products sold associated with an acquisition fair value adjustment for inventory, and recorded a gain in Interest expense of $18 million on treasury rate lock contracts used to hedge the planned financing of the acquisition. The company also incurred integration costs in association with its cost savings initiatives, of which $13 million was recorded in Restructuring charges and $12 million in Administrative expenses. The aggregate impact was $102 million, $73 million after tax, or $.24 per share.
		(7)		For the year ended July 29, 2018, the company recorded a loss of $22 million in Other expenses / (income) ($15 million after tax, or $.05 per share) from a settlement of a legal claim.

The following tables reconcile financial information, presented in
accordance with GAAP, to financial information excluding certain items:

			Three Months Ended
			January 27, 2019															January 28, 2018
(millions, except per share amounts)			As reported					Adjustments(a)					Adjusted					As reported					Adjustments(a)					Adjusted					Adjusted Percent Change
Gross margin			$	714				$	124				$	838				$	766				$	1				$	767				9	%
Gross margin percentage				26.3	%									30.9	%				35.1	%									35.2	%
Marketing and selling expenses				264					(2	)				262					228					—					228
Administrative expenses				180					(20	)				160					165					(26	)				139
Research and development expenses				23					(1	)				22					27					—					27
Other expenses / (income)				226					(231	)				(5	)				70					(99	)				(29	)
Restructuring charges				2					(2	)				—					33					(33	)				—
Earnings before interest and taxes			$	19				$	380				$	399				$	243				$	159				$	402				(1	)%
Interest, net				92					—					92					32					—					32
Earnings (loss) before taxes			$	(73	)			$	380				$	307				$	211				$	159				$	370
Taxes				(14	)				88					74					(74	)				144					70
Effective income tax rate				19.2	%									24.1	%				(35.1	)%									18.9	%
Net earnings (loss) attributable to Campbell Soup Company			$	(59	)			$	292				$	233				$	285				$	15				$	300				(22	)%
Diluted net earnings per share attributable to Campbell Soup Company			$	(.20	)			$	.97				$	.77				$	.95				$	.05				$	1.00				(23	)%
(a)See following tables for additional information.

			Three Months Ended
			January 27, 2019
(millions, except per share amounts)			Restructuring charges, implementation costs and other related costs (1)					Impairment charges (2)					Costs associated with planned divestitures (3)					Tax reform (4)					Adjustments
Gross margin			$	9				$	115				$	—				$	—				$	124
Marketing and selling expenses				(2	)				—					—					—					(2	)
Administrative expenses				(10	)				—					(10	)				—					(20	)
Research and development expenses				(1	)				—					—					—					(1	)
Other expenses / (income)				—					(231	)				—					—					(231	)
Restructuring charges				(2	)				—					—					—					(2	)
Earnings before interest and taxes			$	24				$	346				$	10				$	—				$	380
Interest, net				—					—					—					—					—
Earnings before taxes			$	24				$	346				$	10				$	—				$	380
Taxes				6					82					2					(2	)				88
Net earnings attributable to Campbell Soup Company			$	18				$	264				$	8				$	2				$	292
Diluted net earnings per share attributable to Campbell Soup Company*			$	.06				$	.88				$	.03				$	.01				$	.97
*The sum of individual per share amounts may not add due to rounding.

			Three Months Ended
			January 28, 2018
(millions, except per share amounts)			Restructuring charges, implementation costs and other related costs (1)					Impairment charges (2)					Tax reform (4)					Transaction costs (6)					Adjustments
Gross margin			$	1				$	—				$	—				$	—				$	1
Administrative expenses				(26	)				—					—					—					(26	)
Other expenses / (income)				—					(75	)				—					(24	)				(99	)
Restructuring charges				(33	)				—					—					—					(33	)
Earnings before interest and taxes			$	60				$	75				$	—				$	24				$	159
Interest, net				—					—					—					—					—
Earnings before taxes			$	60				$	75				$	—				$	24				$	159
Taxes				14					1					124					5					144
Net earnings attributable to Campbell Soup Company			$	46				$	74				$	(124	)			$	19				$	15
Diluted net earnings per share attributable to Campbell Soup Company			$	.15				$	.25				$	(.41	)			$	.06				$	.05

			Six Months Ended
			January 27, 2019															January 28, 2018
(millions, except per share amounts)			As reported					Adjustments(a)					Adjusted					As reported					Adjustments(a)					Adjusted					Adjusted Percent Change
Gross margin			$	1,538				$	150				$	1,688				$	1,549				$	6				$	1,555				9	%
Gross margin percentage				28.4	%									31.2	%				35.7	%									35.8	%
Marketing and selling expenses				512					(4	)				508					447					—					447
Administrative expenses				356					(35	)				321					314					(38	)				276
Research and development expenses				50					(1	)				49					57					—					57
Other expenses / (income)				230					(231	)				(1	)				41					(85	)				(44	)
Restructuring charges				21					(21	)				—					35					(35	)				—
Earnings before interest and taxes			$	369				$	442				$	811				$	655				$	164				$	819				(1	)%
Interest, net				185					—					185					62					—					62
Earnings before taxes			$	184				$	442				$	626				$	593				$	164				$	757
Taxes				49					103					152					33					147					180
Effective income tax rate				26.6	%									24.3	%				5.6	%									23.8	%
Net earnings attributable to Campbell Soup Company			$	135				$	339				$	474				$	560				$	17				$	577				(18	)%
Diluted net earnings per share attributable to Campbell Soup Company			$	.45				$	1.12				$	1.57				$	1.85				$	.06				$	1.91				(18	)%
(a)See following tables for additional information.

			Six Months Ended
			January 27, 2019
(millions, except per share amounts)			Restructuring charges, implementation costs and other related costs (1)					Impairment charges (2)					Costs associated with planned divestitures (3)					Tax reform (4)					Adjustments
Gross margin			$	21				$	129				$	—				$	—				$	150
Marketing and selling expenses				(4	)				—					—					—					(4	)
Administrative expenses				(23	)				—					(12	)				—					(35	)
Research and development expenses				(1	)				—					—					—					(1	)
Other expenses / (income)				—					(231	)				—					—					(231	)
Restructuring charges				(21	)				—					—					—					(21	)
Earnings before interest and taxes			$	70				$	360				$	12				$	—				$	442
Interest, net				—					—					—					—					—
Earnings before taxes			$	70				$	360				$	12				$	—				$	442
Taxes				17					85					3					(2	)				103
Net earnings attributable to Campbell Soup Company			$	53				$	275				$	9				$	2				$	339
Diluted net earnings per share attributable to Campbell Soup Company*			$	.18				$	.91				$	.03				$	.01				$	1.12
*The sum of individual per share amounts may not add due to rounding.

			Six Months Ended
			January 28, 2018
(millions, except per share amounts)			Restructuring charges, implementation costs and other related costs (1)					Impairment charges (2)					Tax reform (4)					Mark-to- market (5)					Transaction costs (6)					Adjustments
Gross margin			$	6				$	—				$	—				$	—				$	—				$	6
Administrative expenses				(38	)				—					—					—					—					(38	)
Other expenses / (income)				—					(75	)				—					14					(24	)				(85	)
Restructuring charges				(35	)				—					—					—					—					(35	)
Earnings before interest and taxes			$	79				$	75				$	—				$	(14	)			$	24				$	164
Interest, net				—					—					—					—					—					—
Earnings before taxes			$	79				$	75				$	—				$	(14	)			$	24				$	164
Taxes				21					1					124					(4	)				5					147
Net earnings attributable to Campbell Soup Company			$	58				$	74				$	(124	)			$	(10	)			$	19				$	17
Diluted net earnings per share attributable to Campbell Soup Company			$	.19				$	.25				$	(.41	)			$	(.03	)			$	.06				$	.06

			Year Ended
(millions, except per share amounts)			July 29, 2018
Gross margin			$	2,816
Add: Restructuring charges, implementation costs and other related costs (1)				45
Add: Impairment charges (2)				11
Add: Transaction and integration costs (6)				42
Adjusted Gross margin			$	2,914
Adjusted Gross margin percentage				33.6	%
Earnings before interest and taxes, as reported			$	469
Add: Restructuring charges, implementation costs and other related costs (1)				185
Add: Impairment charges (2)				748
Deduct: Total pension and postretirement benefit mark-to-market and curtailment adjustments (5)				(136	)
Add: Transaction and integration costs (6)				120
Add: Claim settlement (7)				22
Adjusted Earnings before interest and taxes			$	1,408
Interest, net, as reported			$	197
Add: Transaction and integration costs (6)				18
Adjusted Interest, net			$	215
Adjusted Earnings before taxes			$	1,193
Taxes on earnings, as reported			$	11
Add: Tax benefit from restructuring charges, implementation costs and other related costs (1)				49
Add: Tax benefit from impairment charges (2)				136
Add: Tax benefit from tax reform (4)				126
Deduct: Tax expense from total pension and postretirement benefit mark-to-market and curtailment adjustments (5)				(33	)
Add: Tax benefit from transaction and integration costs (6)				29
Add: Tax benefit from claim settlement (7)				7
Adjusted Taxes on earnings			$	325
Adjusted effective income tax rate				27.2	%
Net earnings attributable to Campbell Soup Company, as reported			$	261
Add: Net adjustment from restructuring charges, implementation costs and other related costs (1)				136
Add: Net adjustment from impairment charges (2)				612
Deduct: Net adjustment from tax reform (4)				(126	)
Deduct: Net adjustment from total pension and postretirement benefit mark-to-market and curtailment adjustments (5)				(103	)
Add: Net adjustment from transaction and integration costs (6)				73
Add: Net adjustment from claim settlement (7)				15
Adjusted Net earnings attributable to Campbell Soup Company			$	868
Diluted net earnings per share attributable to Campbell Soup Company, as reported			$	.86
Add: Net adjustment from restructuring charges, implementation costs and other related costs (1)				.45
Add: Net adjustment from impairment charges (2)				2.03
Deduct: Net adjustment from tax reform (4)				(.42	)
Deduct: Net adjustment from total pension and postretirement benefit mark-to-market and curtailment adjustments (5)				(.34	)
Add: Net adjustment from transaction and integration costs (6)				.24
Add: Net adjustment from claim settlement (7)				.05
Adjusted Diluted net earnings per share attributable to Campbell Soup Company			$	2.87

View source version on businesswire.com: https://www.businesswire.com/news/home/20190227005151/en/

Source: Campbell Soup Company

INVESTOR CONTACT:
Ken Gosnell
(856)
342-6081
[email protected]

MEDIA CONTACT:
Thomas Hushen
(856)
342-5227
[email protected]