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Campbell to Outline Growth Plans for Fiscal 2015

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Reaffirms Fiscal 2014 Guidance

Discusses Key Drivers for Fiscal 2015

CAMDEN, N.J.–(BUSINESS WIRE)–Jul. 21, 2014–
Campbell Soup Company (NYSE:CPB), led by President and Chief
Executive Officer Denise Morrison, will meet with investors today to
outline steps the company is taking to alter its growth trajectory and
its plans to drive growth in fiscal 2015, which include the launch of
more than 200 new products.

In her presentation, Morrison will share her perspective on the state of
the packaged food industry and the consumer environment. Morrison will
also discuss Campbell’s progress as it reshapes its portfolio to meet
the changing needs of consumers and continues to execute its strategies
to deliver sustainable, profitable net sales growth. Morrison and her
management team will outline the steps Campbell is taking as it aspires
to become a profitable $10 billion company within the next five years by
strengthening its core business and expanding into faster-growing spaces.

Reaffirms Fiscal 2014 Guidance for Continuing Operations

Campbell reaffirmed its previous full-year guidance for fiscal 2014,
which ends on Aug. 3, 2014. For the year, Campbell expects growth of
approximately 3 percent in net sales from continuing operations and
growth in adjusted EBIT at the low end of the 4 to 6 percent range.
Adjusted EPS is expected to grow at the low end of the 2 to 4 percent
range, or $2.53 to $2.58 per share. A detailed reconciliation of
adjusted financial information to the reported information is included
at the end of this news release.

Key Drivers for Fiscal 2015

Campbell plans to provide fiscal 2015 guidance when it reports
fourth-quarter results on Sept. 8, 2014.

Looking ahead to fiscal 2015, Campbell expects organic sales to
increase, reflecting improvements in its key categories, continued
growth from its innovation platforms, progress in its U.S. Beverages and
Australian businesses and the contribution from recent acquisitions.

Campbell also expects its gross margin percentage to be comparable to
fiscal 2014. Absent further acquisitions, the company anticipates it
will resume strategic share repurchases next fiscal year. Campbell
suspended its strategic share repurchase program following the Bolthouse
Farms acquisition in 2012.

Long-Term Targets

Campbell reiterated its long-term targets of 3 to 4 percent organic
sales growth, 4 to 6 percent adjusted EBIT growth and 5 to 7 percent
adjusted EPS growth. While Campbell expects an improvement in its
organic sales performance for the coming year, the company’s fiscal 2015
performance is expected to be below these long-term targets. The company
indicated that it may need to continue reshaping its portfolio to
achieve these long-term goals.

A webcast of the meeting will be available at
beginning at 12:30 p.m. Eastern Daylight Time today. A replay and
transcript will be available after the event.

About Campbell Soup Company

Campbell (NYSE: CPB) makes real food that matters for life’s moments,
from high-quality soups and simple meals to snacks and healthy
beverages. For generations, people have trusted Campbell to provide
authentic, flavorful and readily available foods and beverages that
connect them to each other, to warm memories and to what’s important
today. Led by its iconic “Campbell’s” brand, the company’s portfolio
includes “Pepperidge Farm”, “Goldfish”, “Bolthouse Farms”, “V8”,
“Swanson”, “Prego”, “Pace”, “Plum Organics”, “Arnott’s”, “Tim Tam”,
“Royal Dansk” and “Kjeldsens”. 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 & Poor’s 500
and the Dow Jones Sustainability Indexes. For more information, visit
and @CampbellSoupCo.

Cautionary Note Regarding 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; (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.

Reconciliation of GAAP and 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.

The company believes that financial information excluding certain
transactions not considered to be part of the ongoing business improves
the comparability of year-to-year results. Consequently, the company
believes that investors may be able to better understand its earnings
results if these transactions are excluded from the results.


Adjusted Earnings

Year Ended
Charges and


(dollars in millions)   As Reported  

Costs (1)

  Costs (2)   Adjusted
Earnings from continuing operations attributable to Campbell Soup
$ 689 $ 90 $ 7 $ 786
Add: Net earnings (loss) attributable to noncontrolling interests (9 ) (9 )
Add: Interest, net 125 125
Add: Taxes on earnings     275       52     3     330  
Earnings before interest and taxes   $ 1,080     $ 142   $ 10   $ 1,232  

Adjusted Diluted Earnings Per Share –
Continuing Operations

Diluted earnings per share – continuing operations attributable to
Campbell Soup Company
$ 2.17
Add: Restructuring charges and related costs (1) 0.28
Add: Acquisition transaction costs (2)     0.02
Adjusted Diluted earnings per share – continuing operations
attributable to Campbell Soup Company*
  $ 2.48

*The sum of the individual per share amounts may not add due to rounding.

(1) In fiscal 2013, the company implemented 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. In
fiscal 2013, the company recorded 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).

(2) In the first quarter of fiscal 2013, the company incurred
transaction costs of $10 million ($7 million after tax or $.02 per share
in earnings from continuing operations) associated with the acquisition
of Bolthouse Farms, which closed on August 6, 2012.

Source: Campbell Soup Company

Campbell Soup Company
Carla Burigatto (Media)
Driscoll (Analysts/Investors)

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