Campbell Soup Company
) yesterday revealed its growth plans for fiscal 2015 as well as
the actions that are being taken to revive its business. The
company's growth plans for fiscal 2015 include the launch of more
than 200 new products catering to the changing tastes, preferences
and needs of consumers. Additionally, the company remains focused
on strengthening its core business along with expanding into
faster-growing regions, aiming to become a profit making company
with $10 billion in sales within the next five years.
Along with its strategic growth plans, the company reiterated its
forecast for fiscal 2014 which end on Aug 3, 2014. The company
forecasts nearly 3% growth in net sales while adjusted EBIT is
expected to grow at the low end of the 4%-6% range. Adjusted EPS
for the fiscal is projected to be at the bottom end of the
$2.53-$2.58 range, representing growth at the lower end of the
Though Campbell did not provide its guidance for fiscal 2015, it
expects results for the year to be driven by strong organic sales
stemming from upgrade of its key categories, sustained growth from
its innovation platforms, progress in its U.S. Beverages and
Australian businesses and contribution from the recent
Moreover, the company anticipates gross margin to remain at par
with projected fiscal 2014 levels. Additionally, the company
expects to resume its share repurchase program, which was suspended
following the Bolthouse Farms acquisition in 2012, in fiscal 2015.
Further, looking at the longer term outlook, the company continues
to expect sales growth in the 3%-4% range with adjusted EBIT growth
of 4%-6% and adjusted EPS growth of 5%-7%. Though the company
remains confident of organic sales growth in fiscal 2015, it still
expects results to be below the above mentioned long-term growth
The company plans to initiate strengthening its core business with
the U.S. Simple Meals focused on soups, followed by stimulating its
U.S. Beverages segment including the V8 brand. Moreover, it plans
to improve growth at Pepperidge Farm and alleviate its Australian
business, which includes "Arnott's" sweet biscuits.
On the other hand, its efforts to expand into faster-growing
regions will include promoting innovation, strengthening its
position in packaged fresh foods, expanding its footprint in the
developing markets of Asia and Latin America and making its
products available in all channels.
Major product launches in fiscal 2015 will include Bolthouse Farms'
first Kids line with Smoothies, Fruit Tubes and Veggie Snackers,
Campbell's first range of branded organic soups in six delicious
flavors, 22 new "Plum Organics" products in the organic simple
meals and snacks for infants, toddlers and children, new on-trend
vegetable juices under the "V8" brand, "V8" Protein Shakes and
Protein Bars, new "Campbell's" Soups for Easy Cooking, Pumpkin
Spice "Milano" cookies and two varieties of soft-baked Coffee Shop
cookies from Pepperidge Farm and "Arnott's" on-trend varieties of
"Tim Tam" like red velvet to be launched in Australia.
Other Stocks to Consider
Currently, Campbell Soup carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the food space include
Treehouse Foods Inc.
Pinnacle Foods Inc.
Phibro Animal Health Corporation
). While Treehouse carries a Zacks Rank #1 (Strong Buy), Pinnacle
Foods and Phibro Animal Health have a Zacks Rank #2 (Buy).
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