Campbell made a robust start to fiscal 2015 with both top and
bottom lines improving year over year and coming ahead of the Zacks
Consensus Estimate. The bottom-line results mainly benefited from
strong revenue growth along with its brand expansion and cost
containment strategies. Campbell's focus on augmenting the North
American soup and simple meal business, and expanding overseas
operations bode well for future growth. We believe that the
company's prudent investment and strategic initiatives toward
product innovation and brand building will increase its customer
base and profitability. However, we prefer to be on the sidelines
because of the rising commodity costs, intense competition and
exposure to foreign currency fluctuations, which may undermine the
company's operating performance. Therefore, we maintain our
long-term Neutral recommendation on the stock.
Based in Camden, NJ, Campbell Soup Company, together with its
subsidiaries, is a worldwide manufacturer and marketer of
high-quality, branded convenience food products. The company was
instituted as a business corporation on Nov 23, 1922 under the laws
of New Jersey. Its brands are sold in approximately 120 countries,
and its principal geographies include North America, France,
Germany, Belgium, and Australia. The widely-recognized brands of
the company include Campbells, Pepperidge Farm, V8, Pace, Prego,
Swanson, Arnotts, Kelsen, Kjeldsens and Plum Organics.
Campbell Soup reports its results of operations in 5 reportable
U.S. Simple Meals comprises the company's U.S. Soup and U.S.
Sauces businesses. It includes condensed and ready-to-serve soups,
Swanson broth and stocks, Swanson canned poultry, Pace Mexican
sauces, Prego pasta sauces, Campbell's canned gravies, pasta and
beans, and Plum Organics food and snacks.
U.S. Beverages includes V8 juices and beverages, and Campbell's
Global Baking and Snacking includes Pepperidge Farm cookies,
crackers, bakery and frozen products in the U.S. retail Arnotts
biscuits in the Asia Pacific and Australia and Kelsen cookies
International Simple Meals and Beverages consists of the retail
business in Canada and the simple meals and beverages business in
Asia Pacific, China and Latin America.
Bolthouse and Foodservice includes the company's Bolthouse Farms
carrot products, including fresh carrots, juice concentrate and
fiber Bolthouse Farms super-premium refrigerated beverages and
refrigerated salad dressings and the North America Foodservice
Campbell Soup Company (CPB): Read the Full Research
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