Campbell Soup (CPB) Reaffirms 2014, Outlines 2015

Campbell Soup (NYSE: CPB) reaffirmed 2014 guidance and outlined plans for 2015.

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.

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.

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