Mark Clouse is stepping down as president and CEO of The Campbell's Company to pursue a career in American football.
Clouse took up the roles in 2019 when the Nasdaq-listed business was trading as Campbell Soup Co. He leaves on 31 January to join the NFL’s Washington Commanders as president.
Mick Beekhuizen, the president of Campbell’s meals and beverages division, has been named as Clouse’s successor, effective from 1 February.
“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,” board chair Keith McLoughlin said in a statement.
The succession plan was announced in conjunction with Campbell’s first-quarter results, which, according to Robert Moskow at TD Cowen, missed estimates in terms of organic growth and gross margin.
Campbell, however, retained the full-year guidance outlined in August and which excludes the pending sale of Noosa yogurt, the business inherited from this year’s purchase of Sovos Brands. The disposal of Noosa to Lakeview Farms was announced in November and is expected to close in the first quarter.
Organic growth is envisaged at flat to up 2%, despite a first-quarter decline of 1%. The range for adjusted EBIT was left at 9-11%, and 1-4% for adjusted EPS.
“Guidance ranges reflect a balance between expected sequential progress and pragmatism as the company continues to navigate the dynamic consumer environment and uneven category recovery,” Campbell's said in the commentary.
“The upper-end of the range anticipates a quicker normalisation of the consumer environment, while the lower-end of the range assumes a slower, more conservative pace of recovery.”
Moskow said Clouse “leaves the business on a strong footing”, describing Beekhuizen “as a good pick”.
The food and beverage analyst at the US investment bank wrote in a research note: “The next four years will pose many new challenges. Mark Clouse deserves a lot of credit for transforming a struggling business and rebuilding its foundation over the past six years.
Over the next several years, he [Beekhuizen] will face a different set of challenges, such as uncertainties regarding President Trump's ‘Make America Healthy Again’ initiative, consumer sensitivity to inflation, and rapid changes in consumer preferences.”
Beekhuizen has headed up the meals and beverages division since 2022 after joining Campbell as CFO in 2019.
“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,” he said.
McLoughlin referred to Clouse as a “transformational leader” who has “positioned Campbell’s for ongoing success”. The outgoing CEO dropped soup from the company name in September to better reflect the composition of the portfolio, although the soup offering was retained.
Clouse said: “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.
“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.”
Elsewhere in the first-quarter results to 27 October, Campbell posted a 10% reported increase in sales to $2.8bn. The gross profit margin was flat at 31.3%.
Adjusted EBIT climbed 6% to $432m, while adjusted EPS fell 2% to $0.89.
Sales from the meals and beverages division increased 22% on a reported basis to $1.71bn but were flat in organic terms. Volume/mix was up 1% but price was down by the same magnitude.
The snacks division posted sales of $1.07bn, 4% lower in reported terms but up 2% on an organic level. Volume/mix and price were both a negative 1%.
"While navigating this dynamic consumer environment and uneven pace of category recovery, we remain agile, focusing on balancing investments and earnings to meet our commitments for this year and the long term,” Clouse said.
“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.”
