Mark Clouse is stepping down as President and CEO of Campbell’s Company to pursue a career in American football. Clouse has held these roles since 2019 when the Nasdaq-listed business was known as Campbell Soup Co. He will officially leave on January 31 to take on the role of president for the NFL’s Washington Commanders.
Mick Beekhuizen, currently the president of Campbell’s meals and beverages division, has been appointed as Clouse’s successor, effective February 1. Keith McLoughlin, the board chair, expressed confidence in Beekhuizen’s leadership capabilities, stating, “Mick is a superb leader with a track record of success. The board is confident that he has all the requisite skills and capabilities to continue to drive the strategy that has delivered consistently strong results and created value for shareholders.”
This succession plan was unveiled alongside Campbell’s first-quarter financial results. However, these results fell short of expectations for organic growth and gross margin, as analyzed by Robert Moskow from TD Cowen. Despite missing estimates, Campbell has maintained its full-year projections, which, notably, exclude the upcoming sale of Noosa Yogurt— a business acquired from Sovos Brands this year. The divestiture of Noosa to Lakeview Farms was announced in November and is anticipated to close within the first quarter.
Organic growth for the year is projected to be flat to a 2% increase, even after a first-quarter decline of 1%. The adjusted EBIT range remains at 9-11%, while adjusted EPS is projected at 1-4%. Campbell’s management explained that these guidance ranges represent a balance between expected sequential progress and a realistic approach as they navigate the dynamic consumer environment, alongside the varying pace of category recovery.
Moskow appreciates Clouse’s contributions: “Mark Clouse deserves a lot of credit for transforming a struggling business and rebuilding its foundation over the past six years.” He noted that Beekhuizen is a solid choice to lead Campbell through a different set of challenges, such as the impact of rising inflation and fluctuating consumer preferences.
Since joining Campbell as CFO in 2019, Beekhuizen has led the meals and beverages division, and he expressed excitement for his new role: “I am energised by the opportunity to work with the Campbell’s team to accelerate the successful strategy that has led to our strong business performance and industry-leading employee engagement.”
McLoughlin deemed Clouse a “transformational leader” who has strategically positioned Campbell for sustained success. Highlighting the company’s evolution, Clouse previously announced the name change from Campbell Soup Company to better reflect its diversified portfolio while retaining the soup segment.
Clouse remarked, “We have built what I believe is the best portfolio in food, and the company has never been better positioned for sustainable growth. The company is in excellent hands with Mick at the helm.” He further emphasized, “The Washington Commanders role is a once-in-a-lifetime position that blends my passion for business and love of sports. A leadership role in professional sports is the only thing that would’ve pulled me away from Campbell’s.”
In the first quarter ending October 27, Campbell reported a 10% increase in sales, reaching $2.8 billion, although the gross profit margin remained unchanged at 31.3%. Adjusted EBIT climbed by 6% to $432 million, while adjusted EPS saw a slight decline of 2% to $0.89.
The meals and beverages division experienced a 22% rise in sales, totaling $1.71 billion, though organic growth remained flat. The snacks division reported sales of $1.07 billion, which is a 4% decrease in reported terms but a 2% increase on an organic basis.
As the company adapts to ongoing challenges within the food and beverage industry, Clouse emphasized the significance of remaining agile while balancing investments and earnings. He stated, “Our first quarter reflected our successful efforts to achieve that goal, as do our plans for the second quarter, which include the critical holiday season where we expect both top-line and market share sequential improvement.”
Overall, the landscape for the food and drink business continues to evolve, with shifting consumer trends and economic pressures. The transition from Clouse to Beekhuizen illustrates the company’s commitment to navigating these industry dynamics effectively.
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