Corporate Profiles - 2023 - 62

COMPANY overview
Campbell Soup Co.
Company expanding Goldfish capacity,
acquiring Sovos
C
ampbell Soup Co.'s
plans
for
future
growth in 2023 came from investing in
Goldfish capacity expansion and acquiring
Sovos Brands, Inc. Management, however,
expected headwinds in the 2024 fiscal year.
Campbell Soup, Camden, NJ, in July said it
was investing $160 million in its Richmond,
Utah, manufacturing facility to expand production
of Goldfish crackers. The new line will produce
more than 5 million Goldfish per hour, increasing
the bakery's output by 50%. Utah Flour
Milling, LLC, which was formed through a combination
of PHM Brands LLC and Japan-based
NIPPN Corp., agreed to build a mill adjacent and
connected to the Campbell bakery.
The Goldfish line should become operational
by the end of 2024. Campbell Soup Co. over
entrees, frozen pizza and yogurts. The acquisition
is expected to close by the end of the year.
" We're thrilled to add the most compelling
growth story in the food industry and welcome
the talented employees who have built a nearly
$1 billion portfolio, " said Mark A. Clouse, president
and chief executive officer of Campbell
Soup Co. " This acquisition fits perfectly with
and accelerates our strategy of focusing on one
geography, two divisions and select key categories
that we know well. "
Campbell Soup Co. in 2023 also announced
it would invest $50 million in its Camden
headquarters to consolidate its Snacks business
segment offices in Charlotte, NC, and Norwalk,
Conn.
Carrie L. Anderson, previously with Integra
LifeSciences, in late January became the new
executive vice president and chief financial officer
at Campbell Soup Co. She succeeded Mick
Beekhuizen, who became president of Campbell's
Meals & Beverages division in November
2022.
In the fiscal year ended July 30, 2023,
Campbell Soup Co. had net earnings of $858
million, or $2.87 per share on the common
stock, compared with $757 million, or $2.51
per share, in the previous fiscal year. Net sales
rose 9% to $9.36 billion from $8.56 billion.
Campbell Soup's stock price on the New York
Chief executive officer -
Mark A. Clouse
the past two years also expanded bakeries in
Lakeland, Fla., and Willard, Ohio.
In August, Campbell Soup Co. said it was acquiring
Louisville-based Sovos Brands, Inc. for
about $2.7 billion. Sovos Brands had a compounded
annual organic net sales growth rate
of 28% from fiscal 2019 to fiscal 2022. Organic
net sales for the company's Rao's brand
increased by 35% in fiscal 2022. Rao's represented
about 69% of Sovos Brands adjusted
net sales in fiscal 2022.
Sovos Brands offers premium products, including
pasta sauces, dry pasta, soups, frozen
62 \ October 2023
Stock Exchange closed at $41.70 per share on
Aug. 31, the day fiscal-year results were announced,
which compared with $56.75 per
share on Dec. 30, 2022. The stock price on June
6, 2023, fell 9%, to $46.08 per share from
$50.59, after Campbell Soup announced a
third-quarter decline in volume/mix.
Company executives expect volume declines
in the first half of the current fiscal year with
sequential improvement leading to positive
trends in the second half. Top-line comparisons
in the first half will be more difficult compared
to the prior year as the company will lap double-digit
net sales gains attributed to inflationdriven
pricing in percentages in the middle
teens. CP
Campbell Soup Co.
net earnings
(fiscal years ended in July)
in millions
2023
2022
2021
$858
$757
$1,002
Source: Campbell Soup Co.
Campbell Soup Co.
net sales
(fiscal years ended in July)
in millions
2023
2022
2021
$9,357
$8,562
$8,476
Source: Campbell Soup Co.
Campbell Soup Co.
share price
$60
Sept. 15, 2023 = $43.04
$53
$46
$39
HIGH =
Dec. 27, 2022 = $56.33
LOW =
Sept. 1, 2023 = $40.89
Sept. Nov.
2022
Jan.
2023
March May
Source: New York Stock Exchange
CAMPBELL SOUP CO.
July
Sept.
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing * Pet Food Processing
Corporate Profiles

Corporate Profiles - 2023

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