Campbell Soup Company (NYSE:CPB) Q1 2020 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 08:30 am ET

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Campbell Soup Company (NYSE:CPB) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Campbell Soup First Quarter 2020 Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. After the speaker's presentation, there will be question-and-answer session. [Operator Instruction] Please be advised that today's conference is being recorded.

[Operator Instruction] I would now like to hand the conference over to your speaker today, Mr. Ken Gosnell, Vice President, Finance Strategy and Investor Relations.

Sir, you may begin.

Executive
Ken Gosnell

Thank you. Good morning, everyone. Welcome to Campbell's first quarter 2020 earnings call. As usual, we've created slides to accompany our earnings presentation. You'll find these slides posted on our website this morning at investor.campbellsoupcompany.com. This call is open to the media who will participate in a listen-only mode.

Turning to Slide 3; today, we will make forward-looking statements which reflect our current expectations. These statements rely on assumptions and estimates which could be inaccurate and are subject to risk. Please refer to Slide 3 or our SEC filings for a list of factors that could cause our actual results to vary materially from those anticipated in forward-looking statements. Because we use non-GAAP measures, we have provided a reconciliation of these measures to the most directly comparable GAAP measure, which is included in the appendix of this presentation.

On Slide 4, you can see what we plan to cover today. With us on the call today are Mark Clouse, Campbell's President and CEO, and our new Chief Financial Officer, Mick Beekhuizen. Mark, will share his thoughts on our performance in the quarter and then Mick will walk through the financial details and our updated guidance for fiscal 2020.

With that, let me turn the call over to Mark.

Executive
Mark A. Clouse

Thanks, Ken. Good morning, everyone, and thanks for joining us today. Before I get to our performance, I want to acknowledge that Ken has decided to retire from Campbell and this should be his last earnings call as Vice President of Investor Relations. Ken, thank you for your contributions to the Company through the years and we wish you the best in your retirement.

Our results to start the year were largely consistent with our expectations. As we discussed during our fourth quarter call, fiscal 2020 will be a year of stabilization for the Company as we invest in the business, optimize the portfolio, and fully implement our new operating model, including further integrating our snacks division.

We continue to make great progress across these focus areas, building upon the foundation we put in place in fiscal 2019. Looking at our results, organic sales were slightly below year ago, just under 1%. Performance reflected continued strength in the snacks segment where sales increased 2% with contributions across the business.

This was more than offset by a 3% sales decline in Meals & Beverage, in large part due to the timing of US Soup shipments related to the Thanksgiving holiday. Although this timing shift resulted in a headwind in Q1, I fully expect that