Case: Campbell Soup Co. Preliminary Financial Analysis Cam pbell's Sales by Divisions International 11.6% Biscuit and bakery 197% North America 68.7% ource: Annual Report
Case: Campbell Soup Co. Preliminary Financial Analysis Campbell's Sales by Divisions International 11.6% Biscuit and bakery 19.7% North America 68.7% Source: Annual Report
Case: Campbell Soup Co. Preliminary Financial Analysis Campbell's Five-Year Growth Rates Equity Dividends ncome Sales 0 8 10 12 14 Source: Annual Report Percent
Case: Campbell Soup Co. Preliminary Financial Analysis Campbell's Five-Year Growth Rates 0 2 4 6 8 10 12 14 Sales Income Dividends Equity Source: Annual Report Percent
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit cc. 2 CAMPBELL SOUP COMPANY Income Statements(millions) Year 11 Year 10 Year 9 Year 8 Year 7 Year 6 6,2041s6,2058s5,6721$4,868.9$44904 42868 Costs and expenses Cost of products sold s40955$425824,0016$33928$3,180.5 30827 Marketing and selling expenses 956.2 980.5 8188 733.3 6262 544.4 Administrative expenses 3067 290.7 252.1 2326 213.9 1959 Research and development expenses 563 53.7 477 46.9 44.8 42.2 Interest expense 1162 1116 53.9 51.7 56.0 Interest income (26.0) (17.6) (383) (332) (29.5) (274) Foreign exchange losses, net 0.8 3.3 193 16.6 4.8 0.7 Other expense(income) 26.2 9.5) Divestitures, restructuring, unusual charges 0.0 3391 343.0 40.6 0.0 0.0 Total costs and expenses 5,5319s6,0342$5,5707$44803$40829$3,9000 Earnings before equity in affil. & M.L. 6722s171.61014$3886$407.5 3868 Equity in earnings of affiliates 13.5 04 6.3 15.1 Minority interests (72) (5.7) (53) (6.3) (4.7) (39) Earnings before taxes s6674$1794$1065$3886$4179$387.2 Taxes on earnings 265.9 175.0 934 147.0 1706 164.0 Earnings before cumulative effect 401.5 s13.1$241.6$2473$223.2 Cumulative effect of change for taxes 32.5 0 0 Net earnings 401.5s44s13.1$274.1$247.3$223.2 Earnings per share s3.16$0. s0.10$2.12*$1.90 Weighted-average shares outstanding 127.00 126.60 12930$129.30$12990 129.50
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit CC.2 CAMPBELL SOUP COMPANY Income Statements (millions) Year 11 Year 10 Year 9 Year 8 Year 7 Year 6 Net sales $ 6,204.1 $ 6,205.8 $ 5,672.1 $ 4,868.9 $ 4,490.4 $ 4,286.8 Costs and expenses: Cost of products sold $ 4,095.5 $ 4,258.2 $ 4,001.6 $ 3,392.8 $ 3,180.5 $ 3,082.7 Marketing and selling expenses 956.2 980.5 818.8 733.3 626.2 544.4 Administrative expenses 306.7 290.7 252.1 232.6 213.9 195.9 Research and development expenses 56.3 53.7 47.7 46.9 44.8 42.2 Interest expense 116.2 111.6 94.1 53.9 51.7 56.0 Interest income (26.0) (17.6) (38.3) (33.2) (29.5) (27.4) Foreign exchange losses, net 0.8 3.3 19.3 16.6 4.8 0.7 Other expense (income) 26.2 14.7 32.4 (3.2) (9.5) 5.5 Divestitures, restructuring, & unusual charges 0.0 339.1 343.0 40.6 0.0 0.0 Total costs and expenses $ 5,531.9 $ 6,034.2 $ 5,570.7 $ 4,480.3 $ 4,082.9 $ 3,900.0 Earnings before equity in affil. & M.I. $ 672.2 $ 171.6 $ 101.4 $ 388.6 $ 407.5 $ 386.8 Equity in earnings of affiliates 2.4 13.5 10.4 6.3 15.1 4. Minority interests (7.2) (5.7) (5.3) (6.3) (4.7) (3.9) Earnings before taxes $ 667.4 $ 179.4 $ 106.5 $ 388.6 $ 417.9 $ 387.2 Taxes on earnings 265.9 175.0 93.4 147.0 170.6 164.0 Earnings before cumulative effect $ 401.5 $ 4.4 $ 13.1 $ 241.6 $ 247.3 $ 223.2 Cumulative effect of change for taxes 0 0 0 32.5 0 0 Net earnings $ 401.5 $ 4.4 $ 13.1 $ 274.1 $ 247.3 $ 223.2 Earnings per share $ 3.16 $ 0.03 $ 0.10 $ 2.12* $ 1.90 $ 1.72 Weighted-average shares outstanding 127.00 126.60 129.30 $ 129.30 $ 129.90 129.50
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit CC. 3 CAViPBEEESotiPCOMiPANY Balance sheets Year11 Year 10 Year 9 Year 8 Year 7 Assets Current assets Cash and cash equivalents 12090S8580s Other temporary investments Accounts receivable 52740 624.50 538.00 Inventories 706.70 81980 816.00 623.60 61050 Prepaid expenses 92.70 118.00 90.50 31.50 Total current assets s1,51850s1,66550$1,60150S1,36290S1,437.90 1,33480 Plant assets, net of depreciation s1,790.40$1,7177051,540.60S1,508901,349.00 1,16810 Intangible assets, net of amortizatio 435.50 38340 466.90 496.60 Other assets 404.60 349.00 323.10 241.20 310.50 259.90 Total assets s4,149.00$4,11560$3,93210S3609.60S3,09740s2,762.80 Liabilities and Shareowners Equity Current liabilities Notes payable s282.20 Payable to suppliers and others 482.40 525.20 446.70 Accrued liabilities 408.70 491.90 16590 Dividend payable Accrued income taxes 67.70 30.10 170 Total current liabilities 1,27800$1,298.10$1,232.10S86330s Long-term debt 77260$80580629.20s525.80S Other liabilities, mainly deferred tax 319.90 325.50 密 Preferred stock, authorized 40 000, 000 sh none issued Capital stock, $0. 15 par value authorized 140 000.000 sh issued 135. 622.676 sh 20. 20.30 20.30 Capital surplus 107.30 61.90 Earnings retained in the business 191260 1,65330 Capital stock in treasury, at cost (10720) ,2 1,879.10 1,70960 1.554.00 (270.40) (7520) 4 Cumulative translation adjustments 23.60 63.50 11.90 (25.10) Total shareowner,s equity 1,79340$1,691.80s1,778.30S1,89500S1,736.10s1,53890 Total liabilities and shareowners equity 4,149.00$4,115603,932.10S3,60960S3,097.40S2,76280
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit CC.3 CAMPBELL SOUP COMPANY Balance Sheets Year11 Year 10 Year 9 Year 8 Year 7 Year 6 Assets Current assets: Cash and cash equivalents $ 178.90 $ 80.70 $ 120.90 $ 85.80 $ 145.00 $ 155.10 Other temporary investments 12.80 22.50 26.20 35.00 280.30 238.70 Accounts receivable 527.40 624.50 538.00 486.90 338.90 299.00 Inventories 706.70 819.80 816.00 664.70 623.60 610.50 Prepaid expenses 92.70 118.00 100.40 90.50 50.10 31.50 Total current assets $ 1,518.50 $ 1,665.50 $ 1,601.50 $ 1,362.90 $ 1,437.90 $ 1,334.80 Plant assets, net of depreciation $ 1,790.40 $ 1,717.70 $ 1,540.60 $ 1,508.90 $ 1,349.00 $ 1,168.10 Intangible assets, net of amortization 435.50 383.40 466.90 496.60 — — Other assets 404.60 349.00 323.10 241.20 310.50 259.90 Total assets $ 4,149.00 $ 4,115.60 $ 3,932.10 $ 3,609.60 $ 3,097.40 $ 2,762.80 Liabilities and Shareowners’ Equity Current liabilities: Notes payable $ 282.20 $ 202.30 $ 271.50 $ 138.00 $ 93.50 $ 88.90 Payable to suppliers and others 482.40 525.20 508.20 446.70 374.80 321.70 Accrued liabilities 408.70 491.90 392.60 236.90 182.10 165.90 Dividend payable 37.00 32.30 29.70 — — — Accrued income taxes 67.70 46.40 30.10 41.70 43.40 49.60 Total current liabilities $ 1,278.00 $ 1,298.10 $ 1,232.10 $ 863.30 $ 693.80 $ 626.10 Long-term debt $ 772.60 $ 805.80 $ 629.20 $ 525.80 $ 380.20 $ 362.30 Other liabilities, mainly deferred tax 305.00 319.90 292.50 325.50 287.30 235.50 Shareowner’s equity: Preferred stock; authorized 40,000,000 sh.; none issued — — — — — — Capital stock, $0.15 par value; authorized 140,000,000 sh.; issued 135,622,676 sh. 20.30 20.30 20.30 20.30 20.30 20.30 Capital surplus 107.30 61.90 50.80 42.30 41.10 38.10 Earnings retained in the business 1,912.60 1,653.30 1,775.80 1,879.10 1,709.60 1,554.00 Capital stock in treasury, at cost (270.40) (107.20) (70.70) (75.20) (46.80) (48.40) Cumulative translation adjustments 23.60 63.50 2.10 28.50 11.90 (25.10) Total shareowner’s equity $ 1,793.40 $ 1,691.80 $ 1,778.30 $ 1,895.00 $ 1,736.10 $ 1,538.90 Total liabilities and shareowners’ equity $ 4,149.00 $ 4,115.60 $ 3,932.10 $ 3,609.60 $ 3,097.40 $ 2,762.80
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit CC. 4 CAMPBELL SOUP COMPANY Statements of Cash Flows For Years 6 to 11(s millions) Year 11 year 10 year 9 year 8 ear 7 Year 6 Total Cash flows from operating activities s to net cash provided by One S 401.5 S 4.4 S 13.1 S 274.1 S 247.3 S 223.2$1,163.6 ctivties Depreciation and amortizat 1923 170.9 126.8 Divestitures and restructuring provsions Deferred taxes 35.5 91964 (67.8) 45.7 29.0 Other. net 18.6 43.0 28.0 16.6 206.7 Cumulative effect of accounting change (Increase)decrease in accounts recei 17 Increase) decrease in inventories Cash flows from investing activies witiegbilities Net change in other current assets and (688) 249 48.7 Net cash provded by operating acti 8052$448.4 s4666$468.3$463.8$3,009.6 s(387.6)$(284.1)$(2453)$(3037$(2353)$(1,817.1) ale of plant assets Businesses acq Sale of businesses 23.5 20.8 138.3 se in other assets Net change in other temporary investments Net cash used in investing activties $(478.7)$(387.5)$(473.2)s(4622)$(401.0)$(387.6)$(2,590.2) Cash flows from financing activities Long-term borrowings 4028s12.6$1265$103.0$48$203.9$853.6 iNcrease de crease tn sh -rwm goowi Other short-term borrowings 117.3 770 37.3 Repayments of other short-term borrowings 192 Dividends paid 124.3 6494 1.6 4 (0.1) 17.9 Net cash provded (used in) financing activties (219.6)s(101.8) 163.1 ffect of exchange rate change on ca Net increase (decrease)in cash and cash equivalents Cash and cash equivalents at the begin Cash and cash equivalents at end of 1789$80.7$1209$85.8$145.0$173.1$7844
Case: Campbell Soup Co. Preliminary Financial Analysis Exhibit CC.4 CAMPBELL SOUP COMPANY Statements of Cash Flows For Years 6 to 11 ($ millions) Year 11 Year 10 Year 9 Year 8 Year 7 Year 6 Total Cash flows from operating activities: Net earnings $ 401.5 $ 4.4 $ 13.1 $ 274.1 $ 247.3 $ 223.2 $ 1,163.6 To reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 208.6 200.9 192.3 170.9 144.6 126.8 1,044.1 Divestitures and restructuring provisions — 339.1 343.0 17.6 — — 699.7 Deferred taxes 35.5 3.9 (67.8) 13.4 45.7 29.0 59.7 Other, net 63.2 18.6 37.3 43.0 28.0 16.6 206.7 Cumulative effect of accounting change — — — (32.5) — — (32.5) (Increase) decrease in accounts receivable 17.1 (60.4) (46.8) (104.3) (36.3) (3.6) (234.3) (Increase) decrease in inventories 48.7 10.7 (113.2) 54.2 (3.9) 23.1 19.6 Net change in other current assets and liabilities 30.6 (68.8) (0.6) 30.2 42.9 48.7 83.0 Net cash provided by operating activities $ 805.2 $ 448.4 $ 357.3 $ 466.6 $ 468.3 $ 463.8 $ 3,009.6 Cash flows from investing activities: Purchases of plant assets $ (361.1) $ (387.6) $(284.1) $ (245.3) $ (303.7) $ (235.3) $ (1,817.1) Sale of plant assets 43.2 34.9 39.8 22.6 — 29.8 170.3 Businesses acquired (180.1) (41.6) (135.8) (471.9) (7.3) (20.0) (856.7) Sale of businesses 67.4 21.7 4.9 23.5 20.8 — 138.3 Increase in other assets (57.8) (18.6) (107.0) (40.3) (50.1) (18.0) (291.8) Net change in other temporary investments 9.7 3.7 9.0 249.2 (60.7) (144.1) 66.8 Net cash used in investing activities $ (478.7) $ (387.5) $ (473.2) $ (462.2) $ (401.0) $ (387.6) $ (2,590.2) Cash flows from financing activities: Long-term borrowings $ 402.8 $ 12.6 $ 126.5 $ 103.0 $ 4.8 $ 203.9 $ 853.6 Repayments of long-term borrowings (129.9) (22.5) (53.6) (22.9) (23.9) (164.7) (417.5) Increase (decrease) in short-term borrowings* (137.9) (2.7) 108.2 8.4 (20.7) 4.6 (40.1) Other short-term borrowings 117.3 153.7 227.1 77.0 89.3 72.9 737.3 Repayments of other short-term borrowings (206.4) (89.8) (192.3) (87.6) (66.3) (88.5) (730.9) Dividends paid (137.5) (124.3) (86.7) (104.6) (91.7) (104.6) (649.4) Treasury stock purchases (175.6) (41.1) (8.1) (29.3) — — (254.1) Treasury stock issued 47.7 12.4 18.5 0.9 1.6 4.0† 85.1 Other, net (0.1) (0.1) 23.5 2.3 18.6 17.9 62.1 Net cash provided (used in) financing activities $ (219.6) $ (101.8) $ 163.1 $ (52.8) $ (88.3) $ (54.5) $ (353.9) Effect of exchange rate change on cash $ (8.7) $ 0.7 $ (12.1) $ (10.8) $ (7.1) $ (3.7) $ (41.7) Net increase (decrease) in cash and cash equivalents 98.2 (40.2) 35.1 (59.2) (28.1) 18.0 23.8 Cash and cash equivalents at the beginning of year 80.7 120.9 85.8 145.0 173.1 155.1 760.6 Cash and cash equivalents at end of year $ 178.9 $ 80.7 $ 120.9 $ 85.8 $ 145.0 $ 173.1 $ 784.4