The Campbell's Company · NASDAQ:CPB
The Campbell's — Campbell Soup Company — Q1 2021 Earnings Presentation
33 slides from The Campbell's's earnings presentation, Dec 9, 2020
Slide 1: Q1 2021 Earnings Presentation
Q1 2021 Earnings Presentation 1
Slide 2: Rebecca Gardy, Vice President Investor Relations
Rebecca Gardy Vice President Investor Relations 2
Slide 3: Forward-Looking Statement
Forward-Looking Statement The factors that could cause actual results to vary materially from those anticipated or expressed in any forward-looking statement include: impacts of, and associated responses to, the COVID-19 pandemic; our ability to execute on and realize the expected benefits from our
Slide 4: Agenda
Agenda CEO Perspective Division Highlights Q1 Financial Highlights Q2 Guidance Q&A Q1 FY21 4
Slide 5: Mark Clouse: CEO Perspective
Mark Clouse President and Chief Executive Officer Q1 Fiscal 2021 Earnings Presentation CEO Perspective 5
Slide 6: Strong Consolidated Results
Strong Consolidated Results +8% +18% +31% +6% +7% Organic Sales* Adj. EBIT* Adj. EPS* Dividend Consumption Increase Growth1 Key Highlights ▪ Growth across all key metrics as elevated demand continued ▪ Improved supply heading into key soup and holiday season ▪ Double-digit growth in M&B; solid growt
Slide 7: Meals & Beverages Division Performance
Meals & Beverages Division Performance U.S. Soup Key M&B Brands +21% +1.3pts #1 Share 18 th Net Sales Household Penetration1 Straight Month3 Share Gains Double-Digit Net Sales +2.7 pts 1 Growth +4M +2.7pts Increased Household Condensed Condensed Share Penetration1 & Share New Households2 Among Mille
Slide 8: Pacific Foods
Pacific Foods ▪ Broth & soup – +22% consumption growth1 – 4th consecutive quarter of share growth; strong gains with millennials1 – Increased points of distribution & household penetration2 – First national advertising campaign ▪ Plant-based beverages – 3rd consecutive quarter of share growth1 – Dou
Slide 9: Snacks Power Brands
Snacks Power Brands ▪ +6% in-market consumption1 ▪ Late July double-digit consumption and +2-point gain in share1 ▪ Goldfish improved consumption & share in latest 4 weeks2 ▪ Value capture remains on track 1. Total IRI U.S. MULO $ consumption latest 13 weeks ending 11/1/2020 2. Total IRI U.S. MULO $
Slide 10: E-commerce Performance
E-commerce Performance ▪ E-commerce in-market consumption +85%1 vs. prior year ▪ E-commerce trends will continue ▪ Investing to strengthen our capabilities and support key partnerships 1. IRI eMarket Insights, FYTD ending 11/1/2020 Q1 FY21 10
Slide 11: Mick Beekhuizen: CFO Perspective
Mick Beekhuizen EVP & Chief Financial Officer Q1 Fiscal 2021 Earnings Presentation CFO Perspective 11
Slide 12: Financial Summary
Financial Summary Continuing Operations ($ millions, except per share data) Q1 Change vs. PY FY21 $ % Net Sales $2,340 $157 7% Organic Net Sales* $182 8% Adjusted EBIT* $463 $71 18% Adjusted EPS* $1.02 $0.24 31% *See Non-GAAP reconciliation Q1 FY21 12
Slide 13: Components of Net Sales Growth
Components of Net Sales Growth Continuing Operations - +2 pts +8% (1) pt - +7% +6 pts Q1 FY20 Volume & Price & Promotional Q1 FY21 Divestiture Currency Q1 FY21 Net Sales Mix Sales Spending Organic Net Organic Net Sales Allowances Sales* Net Sales* * See Non-GAAP reconciliation Q1 FY21 13
Slide 14: Adjusted Gross Margin Expansion
Adjusted Gross Margin* Expansion Continuing Operations +100 bps +120 bps (270) bps +10 bps +150 bps 34.8% +60 bps +30 bps 33.8% Q1 FY20 Q1 FY20 Mix Operating Net Pricing Inflation/ Productivity Cost Savings Q1 FY21 Leverage1 Other 2 Improvements Initiatives * See Non-GAAP reconciliation 1. Reflects
Slide 15: Other Operating Items
Other Operating Items Continuing Operations ($ millions) + 17% A&C Marketing Adjusted & Selling Expenses Administrative Expenses* +1% $206 $208 +9% $126 $137 FY20 Q1 FY20 FY20 Q1 FY21 FY20 Q1 FY20 FY21 Q1 FY21 * See Non-GAAP reconciliation Q1 FY21 15
Slide 16: Cost Savings & Value Capture
Cost Savings & Value Capture Continuing Operations ($ millions) $850 $740 ▪ Total savings of $15 million realized in Q1 ▪ Enterprise cost savings and Snyder’s-Lance synergies on track with $740 million achieved to date ▪ Target of approximately $75 - 85 million for FY21 ▪ Tracking to cumulative savi
Slide 17: Adjusted EBIT Growth
Adjusted* EBIT Growth Continuing Operations ($ millions) +18% +$23 ($2) ($9) +$6 $463 +$53 $392 Q1FY20 Q1 FY20 Net Sales Adjusted Gross Marketing & Adjusted Adjusted Other Q4 FY21 Q1 FY20 Growth** Margin Selling Administrative & Income Improvement Expenses R&D Expenses *See Non-GAAP reconciliations.
Slide 18: Adjusted EPS Performance
Adjusted* EPS Performance Continuing Operations +31% $0.06 - $1.02 $0.18 $0.78 Q1 FY20 Q1 FY20 EBIT Interest Taxes Q4 Q1 FY20 FY21 * See Non-GAAP reconciliation Q1 FY21 18
Slide 19: Segment Results
Segment Results ($ millions) Net Sales & Organic Growth Rate* Operating Earnings $1,342 +12% $1,194 +18% $333 $282 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 * See Non-GAAP reconciliation Q1 FY21 19
Slide 20: Segment Results
Segment Results ($ millions) Net Sales & Organic Growth Rate* Operating Earnings $998 $964 +4% +11% $139 $125 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 * See Non-GAAP reconciliation Q1 FY21 20
Slide 21: Cash Flow
Cash Flow Total Company ($ millions) First-Quarter Q1 FY20 Q1 FY21 Net Cash Flows from Operations $182 $180 Of which changes in working capital (net of divestitures) ($173) ($247) Net Cash Flows from Investing Activities $269 ($72) Of which capital expenditures ($98) ($74) Of which sale of businesse
Slide 22: Q2 Fiscal 2021 Guidance for Continuing Operations
Q2 Fiscal 2021 Guidance for Continuing Operations ($ in millions, except per share) Q2 Fiscal 2020 Q2 Fiscal 2021 Results Guidance Net Sales $2,162 +5% to +7% Adjusted EBIT $364* +5% to +7%1 +12% to +15%1 Adjusted EPS $0.72* $0.81 to $0.83 * See Non-GAAP reconciliation 1. A non-GAAP reconciliation i
Slide 23: Q&A
Q&A Mark Clouse Mick Beekhuizen President and EVP and Chief Financial Officer Chief Executive Officer Q1 FY21 23
Slide 24: Appendix
Appendix Q1 FY21 Real food, Real results, ,,
Slide 25: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions) First Quarter % Change Net Sales, Impact of Organic Net Sales, Organic November 1, 2020 As Reported Currency Net Sales As Reported Net Sales Meals & Beverages $ 1,342 $ - $ 1,342 12% 12% Snacks 998 - 998 1% 4%
Slide 26: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions, except per share amounts) First Quarter EBIT EBIT Margin % Earnings Diluted EPS* 2021 – As Reported $ 461 19.7% $ 309 $ 1.02 Add: Restructuring charges, implementation costs and other related costs 6 5 0.02 Ded
Slide 27: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions) First Quarter Gross Margin GM % EBT Tax Tax Rate 2021 – As Reported $ 813 34.7% $ 406 $ 97 23.9% Add: Restructuring charges, implementation costs and other 1 6 1 related costs Deduct: Pension settlement - (4) (
Slide 28: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions) Adjusted EBIT Impact from Adjusted Gross Margin Expansion First Quarter 2021 – Reported Net Sales $ 2,340 2021 – Adjusted Gross Margin % 34.8% 2020 – Adjusted Gross Margin % 33.8% Change in Adjusted Gross Margi
Slide 29: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions) First Quarter Administrative R&D Other Expenses / Expenses Expenses (Income) 2021 – As Reported $ 141 $ 20 $ (18) Deduct: Restructuring charges, implementation costs and other (4) - - related costs Add: Pension
Slide 30: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions, except per share amounts) First Quarter – Adjusted Diluted EPS Impact from Adjusted EBIT and Interest Adjusted EBIT Interest 2021 $ 463 $ 55 2020 $ 392 $ 80 $ Change $ 71 $ (25) Add (Deduct): Tax impact (17) 6
Slide 31: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions, except per share amounts) Adjusted Diluted EPS Impact from Change in Adjusted Tax Rate First Quarter 2021 – Adjusted EBT $ 408 2021 – Adjusted Tax Rate 23.8% 2020 – Adjusted Tax Rate 24.0% Change in Adjusted Ta
Slide 32: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations ($ millions, except per share amounts) Second Quarter Diluted EBIT Earnings EPS 2020 – As Reported $ 350 $ 171 $ 0.56 Add: Restructuring charges, implementation costs and other 25 19 0.06 related costs Add: Loss on extingui
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Campbell Soup Company — Q1 2021 Earnings Presentation on 6ix