The Campbell’s Company (CPB) Investor Day 2024 summary

Strategic transformation and future direction

• Transitioned from turnaround to growth, aiming to set industry standards through a five-pillar strategy and a new mission, with a pending rebrand to The Campbell's Company to reflect a broader portfolio beyond soup.

• Portfolio now focused on 16 leadership brands, representing 84% of sales, up from 60% in 2017, with most brands #1 or #2 in their categories and a 6% five-year net sales CAGR.

• Strategic acquisitions, including Sovos Brands (Rao’s), and divestitures of non-core brands have accelerated growth in premium and authentic categories, with openness to further tuck-in M&A.

• Innovation pipeline exceeds $1 billion, targeting 4–5% of net sales, with a dual focus on platform and limited-time offerings to drive sustainable and incremental growth.

• Supply chain transformed into a competitive advantage through network optimization, technology upgrades, and the Campbell’s Way of Working, supporting cost savings and growth.

Financial guidance and capital allocation

• New long-term algorithm through fiscal 2027: 2–3% organic net sales growth, 4–6% adjusted EBIT growth, and 7–9% adjusted EPS growth, with FY25 guidance of 0–2% organic net sales growth and 9–11% EBIT growth.

• Snacks division targets 3–4% organic net sales CAGR and operating margin expansion to 17% by 2027, with leadership brands expected to comprise 88% of snack sales.

• Meals & Beverages division expects 1–2% organic net sales growth and margin improvement to 19% by 2027, with Rao’s projected to grow at mid- to high-single digits and become a $1 billion+ brand.

• $4 billion in operating cash flow expected from FY25–FY27, with capital priorities on reinvestment, dividend growth, deleveraging to a 3x leverage ratio, and selective M&A.

• New $250 million cost savings program through 2028, with savings from network optimization, integration synergies, technology, and indirect spend management.

Business developments and market outlook

• Snacks portfolio increasingly premium and differentiated, with Goldfish targeted to reach $1.3 billion in sales by 2027 and continued innovation and expansion.

• Meals & Beverages leverages both mainstream and premium brands, with innovation and marketing to drive growth in soup, sauces, and beverages; Rao’s expansion into adjacent categories is a key lever.

• Digital capabilities and data analytics are central to innovation, marketing, and revenue management, enabling faster trend identification and more effective promotions.

• Supply chain resiliency and executional excellence recognized as differentiators by retailers, with ongoing investments in automation, technology, and network optimization.

• No immediate plans to split Snacks and Meals & Beverages, but management remains open to value-creating opportunities; portfolio reshaping continues with potential divestiture of non-core assets.