Campbell Soup Chief Executive Officer Denise Morrison has parted ways with the company after stepping down last Friday unexpectedly. Morrison announced the news amidst the release of the company’s earnings result with a dreary outlook for the entire year.
Over the years, Campbell has been experiencing declines which can be impugned on the sudden shift on the consumer behavior. This is the same period in where Morrison supervised the company as the CEO.
During the release of the news, the company’s trading performance indicated a 12% drop which was considered to be a five-year low for the company. This was also named as one of the worst declines since 1999.
Campbell´s shares slumped 12 percent in mid-afternoon trading, hitting a more than five-year low and putting them on track for the worst one-day decline since 1999.Food companies like Campbell have been pressured as consumers increasingly move away from processed food toward healthier options.
"Looking ahead, we will be reviewing all aspects of our strategic plans and portfolio composition. We anticipate that our review, which will take several months to complete, will lead to changes designed to improve our operating performance," Chief Financial Officer Anthony DiSilvestro expressed in a statement on Friday.
“We plan to discuss the outcome of this review when we report fourth-quarter and full-year results in late August.”
The company restructured its system back in 2015 reorganizing three different sectors. As a result, the Campbell Fresh unit was formed but the brand itself faced various problems that generally affected the organic sales of the company for two years. The company even elected Luca Mignini as the Chief Operating Officer to supervise and control the sectors.
Morrison has been with Campbell for 7 whole years. However, no further reason was released regarding the departure of now former CEO of the soup company.
At the time being, former CEO of Electrolux Keith McLoughlin was named as the acting CEO of the company.
The Campbell Soup Company, also known as just Campbell's, is an American producer of canned soups and related products that are sold in 120 countries around the world.
Furthermore, Campbell Soup also announced its third quarter results with a $393 million drop to $1.31 per share in a year over year basis. This was predominantly attributable to the $619 million charge related to Campbell Fresh recorded during the quarter.
Also during the period, Net Sales saw a 15% increase which rooted from the after effect of the recently accomplished acquisition of Snyder’s-lance.
More so, earnings before interest and taxes (EBIT) recorded a $475 million decline which counted the effects of the impairment charges of $619 million correlated to Campbell fresh segment.
“In the third quarter, we made some progress against our key priorities. We completed the Snyder’s-Lance acquisition, substantially expanding our portfolio in the faster growing snacking categories, and we made some progress in stabilizing sales in U.S. soup. However, we are not satisfied with our financial results. Our performance has been impacted by both execution-related and external challenges. We are addressing these challenges with renewed urgency.” DiSilvestro added.
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