Campbell Soup Co. expects its growth to “accelerate” in 2014 as it performs against the “dual mandate” of strengthening its core business and expanding into higher growth areas.
Speaking during an investor presentation yesterday (24 July) Campbell management reiterated its full-year outlook for 2013. EBIT growth is expected to come in at the “upper end” of Campbell’s 4-6% range and sales growth is expected to fall in the high-end of its 10-12% guidance.
The group added it anticipates expansion to accelerate the following year. Campbell will provide a detailed 2014 outlook when it gives its fourth-quarter and full-year updates next month.
“We see opportunities to continue to accelerate our performance next year. In fiscal 2014, we expect an improvement in the rate of organic sales and EBIT growth,” CFO Craig Owens said. “Our guidance for fiscal 2014 will include the impact of recent acquisitions, one of which has not yet closed.”
In recent months, Campbell has acquired US baby food brand Plum Organics and Danish baked snack maker Kelsen Group as it works to rebalance its portfolio towards higher-growth categories and markets.
The company is simultaneously working to reinvigorate its core business through a focus on innovation and brand building.
CEO Denise Morrison hailed the progress the group has made but emphasised it is “clear-eyed” about the challenges ahead.
“We have had striking movement in both prongs of this mandate during this fiscal year. We’ve made good progress in strengthening our core businesses, led by impressive advances in US soup. We are clear-eyed about our need to address some continuing challenges, particularly in US beverages. Our expansion into higher growth spaces is being propelled by innovation and external development transactions that represent very bold and deliberate moves for Campbell,” she said.
Click here for just-food’s analysis of Campbell’s strategic drive, or check back for further coverage of the group’s investor day.