Corporate Profiles - 2020 - 68

COMPANY OVERVIEW

Campbell Soup Co.
Strong soup sales testify to the company's comeback
ampbell Soup Co., Camden, NJ, already
was progressing on its plan to transform the company. Then at-home eating brought on by COVID-19 shot those plans
ahead of schedule, which was evident in financial results for fiscal year 2020.
Campbell Soup posted net earnings of
$1.63 billion, or $5.39 per share on the common stock, in the year ended Aug. 2, which
compared with $211 million, or 70¢ per
share, in 2019 and $261 million, or 86¢ per
share, in 2018. Net sales in fiscal 2020 increased 7% to $8.69 billion.
Campbell Soup's stock on the New York
Stock Exchange on Sept. 3, the day fiscal-year
results were reported, closed at $52.37 per
share, which compared with $39.69 per share
on Sept. 4, 2018.
Back in the fall of 2018 shareholder Third
Point, LLC was calling for the sale of the company. Campbell Soup Co. responded by reaching an agreement with Third Point, divesting
its Campbell International and Campbell Fresh
divisions, and making it a priority to invigorate its soup business.
A strong soup performance lifted Campbell's
Meals and Beverages unit to sales of $4.65 billion in fiscal 2020, a 9% increase from 2019.

"Although we clearly have some unique
one-time drivers in the second half of fiscal
2020 that created fairly historic growth numbers, the collective progress we have made
strategically, the unique investments that have
been enabled and the lasting consumer trends
we are experiencing, I believe, places us in
a highly advantaged position as we emerge
from this pandemic period whenever that may
be," said Mark A. Clouse, president and chief
executive officer, in a Sept. 3 earnings call.
Soup household penetration in the fourth
quarter increased over 5 percentage points
versus the fourth quarter last year. Within soup,
Campbell Soup gained 6.4 million households
across all generations, Mr. Clouse said.
"Notably, these gains were most pronounced across our condensed icon soup business, which was where we really increased
investments around cooking, new usage ideas
and more summer recipes," Mr. Clouse said.

"We leveraged the momentum we garnered in
the third quarter and disproportionally invested in marketing messages with new, relevant
ideas that would be especially appealing to
younger consumers."
He said the pandemic has allowed the company to "jump forward" in its soup strategy.
The Campbell Snacks division registered
sales of $4.05 billion in 2020, up 5% from
2019. Valerie Oswalt in March was named executive vice president of Campbell Soup Co.
and president of Campbell Snacks. She previously was CEO of Century Snacks and president of Mondelez International's North American confections business.
Innovation in Campbell's Pepperidge Farm
business came in the form of Farmhouse
Breakfast Bread, which launched in the fourth
quarter. Mr. Clouse described it as "soft thickcut slices of bread, rich whole grains and
fruit." The bread was made available in three
varieties: Raisin and Oats, Berry Sunflower
and Lemon Poppy.
Campbell Soup Co. found it difficult to
predict the full-year outlook for fiscal 2021
since the impact and duration of COVID-19
remained uncertain, Mr. Clouse said on
Sept. 3. CP

Chief executive officer -
Mark A. Clouse

Campbell Soup Co.
net earnings

Campbell Soup Co.
net sales

Campbell Soup share price
$54

(fiscal years ended in July)

$261

$211

$1,628

2018

2019

2020

in millions

$51
$48
$6,615

$8,107

$8,691

2018

2019

2020

$45
$42

68 \ October 2020

Oct.
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Feb.
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Corporate Profiles

Corporate Profiles - 2020

Table of Contents for the Digital Edition of Corporate Profiles - 2020