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Press release from Business Wire

Campbell Reports Fourth-Quarter and Full-Year Results

<p class='bwalignc'> <b>Fourth-Quarter Organic Sales Increased 3 Percent</b> </p> <p class='bwalignc'> <b>Fourth-Quarter Adjusted Net Earnings per Share Declined 5 Percent to $0.41</b> </p> <p class='bwalignc'> <b>Full-Year Adjusted Net Earnings per Share Declined 4 Percent to $2.44</b> </p> <p class='bwalignc'> <b>Campbell Provides Fiscal 2013 Guidance</b> </p>

Tuesday, September 04, 2012

Campbell Reports Fourth-Quarter and Full-Year Results07:30 EDT Tuesday, September 04, 2012 CAMDEN, N.J. (Business Wire) -- Campbell Soup Company (NYSE:CPB) today reported its fourth-quarter and full-year resultsforfiscal 2012. Fourth-Quarter OverviewReported Sales Were Comparable to Prior Year; Organic Sales Increased 3 PercentAdjusted Earnings Before Interest and Taxes (EBIT) Declined 10 PercentU.S. Simple Meals Sales Grew 7 Percent; Earnings Increased 3 PercentIn Global Baking and Snacking, U.S. Beverages, and International Simple Meals and Beverages, Organic Sales Increased, While Earnings Declined Net earnings for the quarter ended July 29, 2012 were $127 million, or $0.40 per share, compared with $100 million, or $0.31 per share, in the prior year. The current quarter's reported net earnings included transaction costs associated with the Aug. 6, 2012 acquisition of Bolthouse Farms. The prior-year quarter's reported net earnings included charges associated with the previously announced June 2011 restructuring program. Excluding items impacting comparability in both periods, adjusted net earnings decreased 8 percent to $130 million compared with $141 million in the prior year's quarter, and adjusted net earnings per share decreased 5 percent to $0.41 compared with $0.43 in the year-ago quarter. A detailed reconciliation of current and prior-year adjusted financial information to the reported information is included at the end of this news release. Denise Morrison, Campbell's President and Chief Executive Officer, said, “In the fourth quarter, we generated organic sales growth, with gains across most of our portfolio, including strong sales in U.S. Soup and U.S. Simple Meals. Retailers continue to respond favorably to our new product development, and we have started shipping new products for fiscal 2013 launches.” Morrison continued, “In fiscal 2012, we advanced our strategies to stabilize and profitably grow North America soup and simple meals, to expand our international presence and to drive growth in healthy beverages and baked snacks. In the first year of our strategic transition, we've renewed our focus on consumer insights, reinvigorated our brand building efforts and significantly improved our innovation pipeline. With the acquisition of Bolthouse Farms, we positioned Campbell for growth in the rapidly expanding packaged fresh market. While we've had some important accomplishments this year, we also recognize that driving change at Campbell will require a sharper focus on execution. Our strategic framework is a roadmap to drive disciplined and successful change at Campbell. We will continue to enhance and grow our core business, while we broaden our appeal with new consumer groups, new product platforms and new geographies.” Morrison concluded, “As we begin the new fiscal year, we are confident that we will improve our sales and earnings trends. Today, we've provided specific growth ranges for fiscal 2013 sales, adjusted EBIT and adjusted EPS.” Campbell's fiscal 2013 guidance, which is included at the end of this news release, reflects improved trends in the company's core business, as well as the impact of Bolthouse Farms. Fourth-Quarter Results For the fourth quarter, sales were $1.613 billion, comparable to a year ago. Sales were impacted by the following factors: Volume and mix added 3 percent Price and sales allowances added 3 percent Increased promotional spending subtracted 3 percent Currency subtracted 3 percent Fourth-Quarter Financial Details Gross margin was 38.5 percent compared with 39.8 percent a year ago. The decrease in gross margin percentage was primarily due to cost inflation and increased promotional spending, partly offset by productivity improvements and higher selling prices. Marketing and selling expenses increased 5 percent to $206 million compared with $196 million in the prior year, primarily due to a 6-percent increase in advertising and consumer promotion expenses, higher spending to support innovation efforts and higher selling expenses, partly offset by a decline due to currency. EBIT was $203 million compared with $169 million in the prior-year quarter. Excluding items impacting comparability in both periods, adjusted EBIT decreased 10 percent to $208 million compared with adjusted EBIT of $232 million a year ago. The decrease was primarily due to the decline in the gross margin percentage and higher marketing expenses, partly offset by an increase in sales volume. The tax rate in the quarter was 29.8 percent compared with 31.5 percent in the prior year. Excluding items impacting comparability in both periods, the adjusted tax rate was 30.1 percent compared with 32.5 percent a year ago. The decrease was primarily due to lower taxes on foreign earnings in the current year. Adjusted net earnings per share were $0.41 in the current quarter compared with adjusted net earnings per share of $0.43 in the prior-year quarter, a decrease of 5 percent. The decline reflected the lower EBIT, partially offset by the benefits of a lower tax rate and fewer shares outstanding. Full-Year OverviewSales Were $7.7 Billion, Comparable to Prior YearAdjusted EBIT Declined 9 PercentSales Increases in Global Baking and Snacking, North America Foodservice, and U.S. Beverages Were Offset by Declines in International Simple Meals and Beverages and U.S. Simple MealsU.S. Simple Meals Earnings Were Comparable to a Year AgoNorth America Foodservice Delivered Earnings GrowthFull-Year Results Net earnings for the fiscal year were $774 million, or $2.41 per share, compared with $805 million, or $2.42 per share, in the year-ago period. Excluding items impacting comparability in both periods, adjusted net earnings declined 7 percent to $783 million, compared to adjusted net earnings of $846 million. Adjusted net earnings per share declined 4 percent to $2.44 versus an adjusted $2.54 per share in the prior year. Sales for the fiscal year were $7.707 billion, comparable to the prior year. Sales were impacted by the following factors: Volume and mix subtracted 2 percent Price and sales allowances added 3 percent Increased promotional spending subtracted 1 percent Full-Year Financial Details Gross margin was 38.8 percent compared with 40.2 percent a year ago. The decrease in gross margin percentage was due to cost inflation, increased promotional spending and unfavorable mix, partly offset by higher selling prices and productivity improvements. Marketing and selling expenses increased $13 million to $1.02 billion, primarily due to a 3-percent increase in advertising and consumer promotion expenses. Administrative expenses decreased $1 million to $611 million. EBIT was $1.212billion compared with $1.279 billion in the prior year. Excluding items impacting comparability in both periods, adjusted EBIT declined 9 percent to $1.227 billion, compared to adjusted EBIT of $1.342 billion in the prior year. The decrease was primarily due to the decline in gross margin percentage. Adjusted net earnings per share were $2.44 compared with adjusted net earnings per share of $2.54 in the prior year, a decrease of 4 percent. The decline reflected the lower EBIT, partially offset by the benefit of fewer shares outstanding. Cash flow from operations was $1.120 billion compared with $1.142 billion in the prior year. The decline reflected the impact of lower cash earnings, partly offset by lower pension contributions. In fiscal 2012, Campbell repurchased 12.6 million shares for $412 million under its $1 billion strategic share repurchase program announced in June 2011 and the ongoing practice of buying back shares sufficient to offset those issued under incentive compensation plans. Summary of Fiscal 2012 Fourth-Quarter and Full-Year Results by SegmentU.S. Simple Meals Sales for U.S. Simple Meals were $461 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 4 percent Price and sales allowances added 3 percent U.S. Soup sales increased 9 percent compared with the year-ago quarter. The sales growth was primarily attributable to condensed soup, which benefited from movements in retailer inventory levels associated with the timing of promotional activity, as well as consumption increases. Sales of “Campbell's” condensed soups increased 14 percent, with double-digit growth in eating varieties and gains in cooking varieties. Sales of ready-to-serve soups increased 1 percent. Sales of “Campbell's Chunky” soups increased slightly while sales of “Campbell's Select Harvest” soups declined. “Campbell's Slow Kettle” soups, launched in July 2011, contributed to the sales growth. Broth sales rose 4 percent, primarily due to volume-driven gains in aseptically packaged broths and the benefit of “Swanson Flavor Boost” concentrated broth launched in July 2011, partly offset by declines in canned broth. U.S. Sauces sales increased 4 percent compared to the year-ago quarter. Sales of both “Prego” pasta sauces and “Pace” Mexican sauces were driven by volume gains, benefiting from increased advertising and promotional support. U.S. Simple Meals operating earnings were $104 million compared with $101 million in the prior-year period, an increase of 3 percent. The increase in operating earnings reflected earnings gains in U.S. Soup, partly offset by a decline in U.S. Sauces. For the segment, higher sales volume was partially offset by a decline in gross margin percentage and increased advertising expenses. For the full year, sales for U.S. Simple Meals decreased 1 percent to $2.726 billion. A breakdown of the change in sales follows: Volume and mix subtracted 4 percent Price and sales allowances added 3 percent U.S. Soup sales declined 2 percent reflecting a 7-percent decrease in ready-to-serve soups, partly offset by a 1-percent increase in condensed soups and a 3-percent increase in broth sales. Sales of U.S. Sauces increased slightly as gains in “Prego” pasta sauces were mostly offset by lower sales of “Pace” Mexican sauces and declines in other simple meal products. U.S. Simple Meals operating earnings were $658 million compared with $657 million in the prior year, reflecting earnings gains in U.S. Soup that were mostly offset by lower earnings in U.S. Sauces. For the segment, higher selling prices, productivity improvements and lower promotional spending were mostly offset by volume declines and cost inflation. Global Baking and Snacking Sales for Global Baking and Snacking were $556 million for the fourth quarter, a decrease of 1 percent from a year ago. Organic sales increased 2 percent. A breakdown of the change in sales follows: Volume and mix added 3 percent Price and sales allowances added 4 percent Increased promotional spending subtracted 5 percent Currency subtracted 3 percent Further details of sales results included the following: Sales of “Pepperidge Farm” products increased, driven by higher selling prices across the portfolio and volume gains, partially offset by increased promotional spending. In cookies and crackers, sales benefited from double-digit growth in “Goldfish” snack crackers, partly offset by declines in cookies. Bakery sales increased slightly, while sales of frozen products declined. Excluding the unfavorable impact of currency, sales in Arnott's were comparable to the prior year, as strong growth in Indonesia was offset by declines in Australia. Operating earnings for the quarter were $83 million compared with $92 million in the prior year. The decrease in operating earnings reflected lower earnings in Arnott's, partly offset by growth in Pepperidge Farm. For the segment, the 10-percent decline was primarily due to increased promotional spending and cost inflation, partly offset by higher selling prices and productivity improvements. For the full year, sales increased 2 percent to $2.193 billion. A breakdown of the change in sales follows: Volume and mix subtracted 1 percent Price and sales allowances added 5 percent Increased promotional spending subtracted 3 percent Currency added 1 percent Operating earnings decreased 11 percent to $315 million compared with $355 million in the year-ago period. The decline was primarily due to cost inflation, increased promotional spending and higher advertising, partly offset by higher selling prices and productivity improvements. International Simple Meals and Beverages Sales for International Simple Meals and Beverages were $294 million for the fourth quarter, a decrease of 7 percent. Organic sales increased 1 percent. The change in sales reflected the following factors: Volume and mix added 2 percent Price and sales allowances added 3 percent Increased promotional spending subtracted 4 percent Currency subtracted 8 percent Excluding the impact of currency, higher sales in Latin America, primarily beverage products, were partially offset by declines in Canada, while sales in Europe and in the Asia Pacific region were comparable to the year-ago period. In Canada, sales decreased primarily due to the negative impact of currency and lower beverage sales. In Europe, excluding the negative impact of currency, sales growth in France was offset by lower sales in Germany. In the Asia Pacific region, excluding the negative impact of currency, sales growth in Japan and Malaysia was offset by declines in Australian soup. Operating earnings were $15 million compared with $24 million in the year-ago period. The decrease in operating earnings was primarily due to cost inflation and increased promotional spending, partly offset by higher selling prices. For the full year, sales decreased 4 percent to $1.404 billion. Organic sales declined 2 percent. A breakdown of the change in sales follows: Volume and mix subtracted 3 percent Price and sales allowances added 2 percent Increased promotional spending subtracted 1 percent Currency subtracted 2 percent Excluding the impact of currency, sales declines in Canada, Europe and the Asia Pacific region were partly offset by gains in Latin America. Operating earnings fell to $153 million compared with $185 million in the year-ago period. The decrease in operating earnings was primarily due to lower earnings in the Asia Pacific region and Canada, as well as increased costs associated with the company's market expansion in China. U.S. Beverages Sales for U.S. Beverages were $181 million for the fourth quarter, an increase of 3 percent compared to the year-ago period, due to gains from volume and mix. Sales gains continued to outpace category growth and were primarily driven by double-digit increases in “V8 Splash” beverages and gains in “V8 V-Fusion” beverages, partially offset by declines in “V8” vegetable juice. Sales of “V8 V-Fusion”beveragesbenefited from the launch of new items, including Smoothies, Energy, Sparkling and Kids' drinks. Operating earnings for the quarter were $25 million compared with $30 million in the year-ago period. The decrease in earnings was primarily due to an increase in marketing expenses and a decline in gross margin percentage, partly offset by higher sales volume. For the full year, sales increased 2 percent to $774 million. A breakdown of the change in sales follows: Volume and mix added 3 percent Increased promotional spending subtracted 1 percent Sales of both “V8 Splash” beverages and “V8 V-Fusion” beverages increased, while sales of “V8” vegetable juice declined. Operating earnings declined to $134 million from $182 million in the year-ago period, primarily due to cost inflation, particularly juice concentrates and packaging materials, increased promotional spending and higher advertising expenses, partly offset by productivity improvements. North America Foodservice Sales for North America Foodservicewere $121 million for the fourth quarter, a decrease of 3 percent compared with a year ago. A breakdown of the change in sales follows: Volume and mix added 1 percent Price and sales allowances added 2 percent Increased promotional spending subtracted 5 percent Currency subtracted 1 percent The decrease was primarily due to declines in canned soup sales. Operating earnings decreased $6 million to $10 million due to higher promotional spending and cost inflation, partly offset by productivity improvements and higher selling prices. For the full year, sales increased 3 percent to $610 million. A breakdown of the change in sales follows: Volume and mix added 2 percent Price and sales allowances added 2 percent Increased promotional spending subtracted 1 percent Operating earnings were $85 million compared with $82 million in the year-ago period, an increase of 4 percent. The increase in operating earnings was primarily driven by higher selling prices and productivity improvements, partially offset by cost inflation. Unallocated Corporate Expenses Unallocated corporate expenses for the quarter were $33 million compared with $31 million a year ago. Unallocated expenses for the full year were $123 million versus $119 million in the prior year. Both the current fourth quarter and full year reflect $5 million of transaction costs related to the Bolthouse Farms acquisition. Bolthouse Farms Acquisition On Aug. 6, 2012, Campbell completed the acquisition of Bolthouse Farms for $1.55 billion, subject to customary purchase price adjustments. In the fourth quarter, Campbell recorded pre-tax transaction costs of $5 million, $3 million after-tax, or $0.01 per share, related to the acquisition. Beginning in the first quarter of fiscal 2013, Campbell's results will include the Bolthouse Farms business. Fiscal 2013 Guidance In fiscal 2013, Campbell expects to grow sales between 10 and 12 percent, adjusted EBIT between 4 and 6 percent and adjusted EPS between 3 and 5 percent. The company expects adjusted EPS to be between $2.51 and $2.57. This guidance includes the estimated impact of the Bolthouse Farms business and excludes the impact of transaction costs. In fiscal 2013, Campbell expects Bolthouse Farms to contribute approximately $750 million to sales. Including the estimated impact of purchase accounting and the suspension of the company's strategic share repurchase program, Campbell expects Bolthouse Farms to add $0.05 to $0.07 cents to fiscal 2013 adjusted EPS. Non-GAAP Financial Information A detailed reconciliation of the adjusted financial information to the reported financial information is included at the end of this news release. Conference Call Campbell will host a conference call to discuss these results on Sept. 4, 2012, at 10:00 a.m. Eastern Daylight Time. U.S. participants may access the call at 1-866-436-0576 and non-U.S. participants at 1-786-800-3941. 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 Oct. 4, 2012, at 1-855-859-2056 or 1-404-537-3406. The access code is 21752010. 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. 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 Europe, Latin America, Asia Pacific, China and the retail business in Canada. U.S. Beverages represents the following products: “V8” vegetable juices, “V8 V-Fusion” juices and juice beverages,“V8 Splash” juice beverages, and “Campbell's” tomato juice. North America Foodservice represents 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 global manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell's,” “Pepperidge Farm,” “Arnott's,” “V8” and “Bolthouse Farms.” 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.campbellsoup.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 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 risks associated with trade and consumer acceptance of the company's initiatives; (3) the company's ability to realize projected cost savings and benefits; (4) the company's ability to manage changes to its business processes; (5) the increased significance of certain of the company's key trade customers; (6) the impact of fluctuations in the supply or costs of energy and raw and packaging materials; (7) the impact ofportfolio changes, including the Bolthouse Farms acquisition; (8) the uncertainties of litigation; (9) the impact of changes in currency exchange rates, tax rates, interest rates, debt and equity markets, inflation rates, economic conditions and other external factors; (10) 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 (11) 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 ENDEDJuly 29, 2012   July 31, 2011 Net sales $1,613   $ 1,607 Costs and expenses Cost of products sold 992 968 Marketing and selling expenses 206 196 Administrative expenses 170 170 Research and development expenses 34 34 Other expenses 7 7 Restructuring charges 1   63 Total costs and expenses 1,410   1,438 Earnings before interest and taxes 203 169 Interest, net 25   26 Earnings before taxes 178 143 Taxes on earnings 53   45 Net earnings 125 98 Net loss attributable to noncontrolling interests 2   2 Net earnings attributable to Campbell Soup Company $127   $ 100 Per share - basic Net earnings attributable to Campbell Soup Company $.40   $ .31 Dividends $.29   $ .29 Weighted average shares outstanding - basic 315   321 Per share - assuming dilution Net earnings attributable to Campbell Soup Company $.40   $ .31 Weighted average shares outstanding - assuming dilution 317   323 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 fiscal 2011, the company recorded pre-tax restructuring charges of $63 ($41 after tax or $.12 per share) associated with the initiatives announced in June 2011 to improve supply chain efficiency, reduce overhead costs across the organization, and exit the Russian market.   CAMPBELL SOUP COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (millions, except per share amounts)   TWELVE MONTHS ENDEDJuly 29, 2012   July 31, 2011 Net sales $7,707   $ 7,719 Costs and expenses Cost of products sold 4,715 4,616 Marketing and selling expenses 1,020 1,007 Administrative expenses 611 612 Research and development expenses 125 129 Other expenses 14 13 Restructuring charges 10   63 Total costs and expenses 6,495   6,440 Earnings before interest and taxes 1,212 1,279 Interest, net 106   111 Earnings before taxes 1,106 1,168 Taxes on earnings 342   366 Net earnings 764 802 Net loss attributable to noncontrolling interests 10   3 Net earnings attributable to Campbell Soup Company $774   $ 805 Per share - basic Net earnings attributable to Campbell Soup Company $2.43   $ 2.44 Dividends $1.16   $ 1.145 Weighted average shares outstanding - basic 317   326 Per share - assuming dilution Net earnings attributable to Campbell Soup Company $2.41   $ 2.42 Weighted average shares outstanding - assuming dilution 319   329 In fiscal 2012, the company recorded pre-tax restructuring charges of $10 ($6 after tax or $.02 per share) associated with the initiatives announced in June 2011 to improve supply chain efficiency, reduce overhead costs across the organization, and exit the Russian market. In fiscal 2011, the company recorded pre-tax restructuring charges of $63 ($41 after tax or $.12 per share) associated with the initiatives. 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.   CAMPBELL SOUP COMPANY CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (millions, except per share amounts)     THREE MONTHS ENDED   Percent July 29, 2012 July 31, 2011 Change Sales Contributions: U.S. Simple Meals $461 $ 431 7% Global Baking and Snacking 556 559 (1)% International Simple Meals and Beverages 294 316 (7)% U.S. Beverages 181 176 3% North America Foodservice 121   125   (3)% Total sales $1,613   $ 1,607   —% Earnings Contributions: U.S. Simple Meals $104 $ 101 3% Global Baking and Snacking 83 92 (10)% International Simple Meals and Beverages 15 24 (38)% U.S. Beverages 25 30 (17)% North America Foodservice 10   16   (38)% Total operating earnings 237 263 (10)% Unallocated corporate expenses 33 31 Restructuring charges 1   63   Earnings before interest and taxes 203 169 20% Interest, net 25 26 Taxes on earnings 53   45   Net earnings 125 98 28% Net loss attributable to noncontrolling interests 2   2   Net earnings attributable to Campbell Soup Company $127   $ 100   27% Per share - assuming dilution Net earnings attributable to Campbell Soup Company $.40   $ .31   29% 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 fiscal 2011, the company recorded pre-tax restructuring charges of $63 ($41 after tax or $.12 per share) associated with the initiatives announced in June 2011 to improve supply chain efficiency, reduce overhead costs across the organization, and exit the Russian market.   CAMPBELL SOUP COMPANY CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (millions, except per share amounts)     TWELVE MONTHS ENDED   Percent July 29, 2012 July 31, 2011 Change Sales Contributions: U.S. Simple Meals $2,726 $ 2,751 (1)% Global Baking and Snacking 2,193 2,156 2% International Simple Meals and Beverages 1,404 1,463 (4)% U.S. Beverages 774 759 2% North America Foodservice 610   590   3% Total sales $7,707   $ 7,719   —% Earnings Contributions: U.S. Simple Meals $658 $ 657 —% Global Baking and Snacking 315 355 (11)% International Simple Meals and Beverages 153 185 (17)% U.S. Beverages 134 182 (26)% North America Foodservice 85   82   4% Total operating earnings 1,345 1,461 (8)% Unallocated corporate expenses 123 119 Restructuring charges 10   63   Earnings before interest and taxes 1,212 1,279 (5)% Interest, net 106 111 Taxes on earnings 342   366   Net earnings 764 802 (5)% Net loss attributable to noncontrolling interests 10   3   Net earnings attributable to Campbell Soup Company $774   $ 805   (4)% Per share - assuming dilution Net earnings attributable to Campbell Soup Company $2.41   $ 2.42   —% In fiscal 2012, the company recorded pre-tax restructuring charges of $10 ($6 after tax or $.02 per share) associated with the initiatives announced in June 2011 to improve supply chain efficiency, reduce overhead costs across the organization, and exit the Russian market. In fiscal 2011, the company recorded pre-tax restructuring charges of $63 ($41 after tax or $.12 per share) associated with the initiatives. 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.   CAMPBELL SOUP COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (millions)     July 29, 2012 July 31, 2011 Current assets $1,771 $ 1,963 Plant assets, net 2,127 2,103 Intangible assets, net 2,509 2,660 Other assets 123   136 Total assets $6,530   $ 6,862 Current liabilities $2,070 $ 1,989 Long-term debt 2,004 2,427 Other liabilities 1,558 1,350 Total equity 898   1,096 Total liabilities and equity $6,530   $ 6,862 Total debt $2,790   $ 3,084 Cash and cash equivalents $335   $ 484   Reconciliation of GAAP to Non-GAAP Financial MeasuresFiscal Year Ended July 29, 2012 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. Organic Net Sales The company believes that organic net sales, which exclude the impact of currency, improves the comparability of year-to-year results. A reconciliation of net sales as reported to organic net sales follows.   Three Months Ended   July 29, 2012   July 31, 2011   % ChangeNet Sales, as   Impact of   OrganicNet Sales, asNet Sales, as   Organic(millions)Reported   Currency   Net SalesReportedReported   Net SalesU.S. Simple Meals$461$—$461 $ 431 7% 7% Global Baking and Snacking55616572 559 (1)% 2% International Simple Meals and Beverages29424318 316 (7)% 1% U.S. Beverages181—181 176 3% 3% North America Foodservice121     1     122   125   (3)%   (2)% Total Net Sales$1,613     $41     $1,654   $ 1,607   —%   3%     Year Ended   July 29, 2012   July 31, 2011   % ChangeNet Sales, as   Impact of   OrganicNet Sales, asNet Sales,   Organic Net(millions)Reported   Currency   Net SalesReported   as Reported   SalesU.S. Simple Meals$2,726$—$2,726 $ 2,751 (1)% (1)% Global Baking and Snacking2,193(13)2,180 2,156 2% 1% International Simple Meals and Beverages1,404251,429 1,463 (4)% (2)% U.S. Beverages774—774 759 2% 2% North America Foodservice610     —     610   590   3%   3% Total Net Sales$7,707     $12     $7,719   $ 7,719   —%   —%   Items Impacting Earnings 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. The following items impacted earnings:     (1)   In fiscal 2011, the company announced a series of initiatives to improve supply chain efficiency and reduce overhead costs across the organization to help fund plans to drive the growth of the business. The company also announced its intent to close its office in Moscow and exit the Russian market. In fiscal 2012, the company recorded pre-tax restructuring charges of $10 million ($6 million after tax or $.02 per share) related to the initiatives.   In the fourth quarter of fiscal 2011, the company recorded pre-tax restructuring charges of $63 million ($41 million after tax or $.12 per share) related to these initiatives.   (2) In the fourth quarter of fiscal 2012, the company announced its intent to acquire Bolthouse Farms. The company incurred transaction costs of $5 million ($3 million after tax or $.01 per share) associated with the acquisition, which closed on August 6, 2012. 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 29, 2012   July 31, 2011 Percent Change Earnings before interest and taxes, as reported$203 $ 169 Add: Restructuring charges (1) — 63 Add: Acquisition transaction costs (2) 5   —   Adjusted Earnings before interest and taxes$208   $ 232   (10)% Interest, net, as reported$25   $ 26   Adjusted Earnings before taxes$183   $ 206   Taxes on earnings, as reported$53 $ 45 Add: Tax benefit from restructuring charges (1) — 22 Add: Tax benefit from acquisition transaction costs (2) 2   —   Adjusted Taxes on earnings$55   $ 67   Adjusted effective income tax rate30.1% 32.5 % Net earnings attributable to Campbell Soup Company, as reported$127 $ 100 Add: Net adjustment from restructuring charges (1) — 41 Add: Net adjustment from acquisition transaction costs (2) 3   —   Adjusted Net earnings attributable to Campbell Soup Company$130   $ 141   (8)% Diluted net earnings per share attributable to Campbell Soup Company, as reported$.40 $ .31 Add: Net adjustment from restructuring charges (1) — .12 Add: Net adjustment from acquisition transaction costs (2) .01   —   Adjusted Diluted net earnings per share attributable to Campbell Soup Company$.41   $ .43   (5)%       Year Ended (millions, except per share amounts) July 29, 2012   July 31, 2011 Percent Change Earnings before interest and taxes, as reported$1,212 $ 1,279 Add: Restructuring charges (1) 10 63 Add: Acquisition transaction costs (2) 5   —   Adjusted Earnings before interest and taxes$1,227   $ 1,342   (9)% Interest, net, as reported$106   $ 111   Adjusted Earnings before taxes$1,121   $ 1,231   Taxes on earnings, as reported$342 $ 366 Add: Tax benefit from restructuring charges (1) 4 22 Add: Tax benefit from acquisition transaction costs (2) 2   —   Adjusted Taxes on earnings$348   $ 388   Adjusted effective income tax rate31.0% 31.5 % Net earnings attributable to Campbell Soup Company, as reported$774 $ 805 Add: Net adjustment from restructuring charges (1) 6 41 Add: Net adjustment from acquisition transaction costs (2) 3   —   Adjusted Net earnings attributable to Campbell Soup Company$783   $ 846   (7)% Diluted net earnings per share attributable to Campbell Soup Company, as reported$2.41 $ 2.42 Add: Net adjustment from restructuring charges (1) .02 .12 Add: Net adjustment from acquisition transaction costs (2) .01   —   Adjusted Diluted net earnings per share attributable to Campbell Soup Company$2.44   $ 2.54   (4)% Campbell Soup CompanyAnthony Sanzio (Media)856-968-4390anthony_sanzio@campbellsoup.comorJennifer Driscoll (Analysts/Investors)856-342-6081jennifer_driscoll@campbellsoup.com