Campbell: shares slump after strategy update
(CercleFinance.com) - Campbell on Thursday disclosed the long-awaited results of its strategy and portfolio review, saying that it will divest its international and fresh products divisions in order to focus on its snacks, meals and beverages core businesses in the North American market.
The world's largest soup maker said it has engaged Goldman Sachs to initiate a process to divest the Campbell International and Campbell Fresh businesses "in a manner that maximizes value," it said.
The group plans to use the proceeds to significantly reduce its debt and that it remains open to evaluating all strategic options to create value in the future.
Given its more focused portfolio, Campbell has adjusted its long-term targets, now expecting organic net sales growth of between 1 and 2 percent.
In the fourth-quarter ended 29 July, its sales decreased 3% in organic terms.
For fiscal year 2018/2019, Campbell said it targets net sales of between 7.92 billion and 8.05 billion dollars assuming divestitures, compared to a previous forecast of 9.97-10.10 billion dollars.
On Thursday Campbell shares are down down 1.9% at 39.2 dollars as investors reacted to the news, in early-morning trading in New York.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The world's largest soup maker said it has engaged Goldman Sachs to initiate a process to divest the Campbell International and Campbell Fresh businesses "in a manner that maximizes value," it said.
The group plans to use the proceeds to significantly reduce its debt and that it remains open to evaluating all strategic options to create value in the future.
Given its more focused portfolio, Campbell has adjusted its long-term targets, now expecting organic net sales growth of between 1 and 2 percent.
In the fourth-quarter ended 29 July, its sales decreased 3% in organic terms.
For fiscal year 2018/2019, Campbell said it targets net sales of between 7.92 billion and 8.05 billion dollars assuming divestitures, compared to a previous forecast of 9.97-10.10 billion dollars.
On Thursday Campbell shares are down down 1.9% at 39.2 dollars as investors reacted to the news, in early-morning trading in New York.
Copyright (c) 2018 CercleFinance.com. All rights reserved.