Morrison concluded, “As we begin the new fiscal year, we are confident that we will improve our sales and earnings trends. Today, we’ve provided specific growth ranges for fiscal 2013 sales, adjusted EBIT and adjusted EPS.”
Campbell’s fiscal 2013 guidance, which is included at the end of this news release, reflects improved trends in the company’s core business, as well as the impact of Bolthouse Farms.
For the fourth quarter, sales were $1.613 billion, comparable to a year ago. Sales were impacted by the following factors:
- Volume and mix added 3 percent
- Price and sales allowances added 3 percent
- Increased promotional spending subtracted 3 percent
- Currency subtracted 3 percent
- Gross margin was 38.5 percent compared with 39.8 percent a year ago. The decrease in gross margin percentage was primarily due to cost inflation and increased promotional spending, partly offset by productivity improvements and higher selling prices.
- Marketing and selling expenses increased 5 percent to $206 million compared with $196 million in the prior year, primarily due to a 6-percent increase in advertising and consumer promotion expenses, higher spending to support innovation efforts and higher selling expenses, partly offset by a decline due to currency.
- EBIT was $203 million compared with $169 million in the prior-year quarter. Excluding items impacting comparability in both periods, adjusted EBIT decreased 10 percent to $208 million compared with adjusted EBIT of $232 million a year ago. The decrease was primarily due to the decline in the gross margin percentage and higher marketing expenses, partly offset by an increase in sales volume.
- The tax rate in the quarter was 29.8 percent compared with 31.5 percent in the prior year. Excluding items impacting comparability in both periods, the adjusted tax rate was 30.1 percent compared with 32.5 percent a year ago. The decrease was primarily due to lower taxes on foreign earnings in the current year.
- Adjusted net earnings per share were $0.41 in the current quarter compared with adjusted net earnings per share of $0.43 in the prior-year quarter, a decrease of 5 percent. The decline reflected the lower EBIT, partially offset by the benefits of a lower tax rate and fewer shares outstanding.
- Sales Were $7.7 Billion, Comparable to Prior Year
- Adjusted EBIT Declined 9 Percent
- Sales Increases in Global Baking and Snacking, North America Foodservice, and U.S. Beverages Were Offset by Declines in International Simple Meals and Beverages and U.S. Simple Meals
- U.S. Simple Meals Earnings Were Comparable to a Year Ago
- North America Foodservice Delivered Earnings Growth