The Kraft Heinz Company

[sjos]

Campbell Soup: I Love Its Products But I Will Stay On The Sidelines
Sep. 29, 2022
Summary
In this article, I want to share another piece of research of a company in the Packaged Foods and Meats Industry.
Campbell Soup owns superior brands that are among consumer favorites.
We will look at the latest results and the possible returns.

Introduction
This article may start with a disclaimer: I am a big fan of Pepperidge Farm Goldfish and Milano cookies. Since I want to invest in companies I am familiar with, I started researching about Pepperidge Farm. This is what brought me to Campbell Soup (NYSE:CPB), the current owner of this beloved brand. However, as much as I love some of its products, I would like to share why at the moment I currently rate the company as hold, meaning that investors who already own the company may do well sticking with it, but investors who wish to initiate a position in the stock should and could wait for a more reasonable valuation.

Summary of previous coverage
This article can be seen as the fourth episode of a series in which I started researching and covering some of the most important players in the Packaged Food and Meats Industry. The main reasons I am looking at this industry are the following:

They sell products that everybody always needs. In other words, they are consumer non-cyclical companies
They usually enjoy high gross profit margin and a good return on common equity
They are able to return excess cash to the shareholders with interesting yields
In my previous articles I looked at The Kraft Heinz Company (KHC); The Hershey Company (HSY) and Hormel Foods (HRL).

The company
The company started its journey back in 1869 when Mr. Campbell, a fruit and vegetable vendor and Mr. Anderson, a commercial canner and packer formed their company. In 1922 the company officially became Campbell Soup Company. In 1961 the company acquired the brand that led me to research the company: Pepperidge Farm, a baked goods company founded by Margaret Rudkin. I would like to spend a few words on this business woman and her history because I think it is worth knowing. She lived in Fairfield, Connecticut on a property called Pepperidge Farm. She began baking all-natural stone ground whole wheat bread for her youngest son who suffered from severe allergies and asthma and couldn't eat most commercially processed foods. Bear in mind that at that time Mrs. Rudkin had never baked in her life. Her bread eventually turned out to be so good that her son's doctor prescribed it to other patients. This made her approach her local grocery store to see if he would be selling her bread. The grocer at first was reluctant but once he gave a taste he changed his mind. The rest is a beautiful growth story that led to the recalled acquisition of Pepperidge Farm by Campbell Soup.

Campbell Soup is mainly focused on North America which can be an advantage at the moment, given the strength of the U.S. dollar and the hit that many American companies are taking on their international sales. As shown below, the company has two divisions: Snacks and Meals & Beverages, which account respectively for 46% and 54% of sales. This makes the company's portfolio well-balanced with many leading brands in 13 core categories...

meer op: https://seekingalpha.com/article/454378 ... -sidelines?

Campbell Soup Stock: Focus On Execution
Jun. 02, 2023
Summary
Campbell Soup Company has seen renewed operating momentum, although entirely resulting from price instead of volumes.
The business is stable and is gradually deleveraging, as Campbell Soup Company has fortunately become a bit quieter on the corporate front.
Appeal is improving, but amidst higher interest rates, I see no screaming appeal yet.
In February, I called shares of Campbell Soup Company (NYSE:CPB) stable and uninspiring, as the company has re-found some rest after years of elevated activity with regard to acquisitions and divestments. With leverage under control, and Campbell performing well during the pandemic and inflationary times, I saw the situation as fair, with few immediate triggers seen for CPB shares, at the time trading in the mid-fifties.

Bron: https://seekingalpha.com/article/460910 ... -execution

[sjos]

Campbell Soup: I Love Its Products But I Will Stay On The Sidelines
Sep. 29, 2022
Summary
In this article, I want to share another piece of research of a company in the Packaged Foods and Meats Industry.
Campbell Soup owns superior brands that are among consumer favorites.
We will look at the latest results and the possible returns.

Introduction
This article may start with a disclaimer: I am a big fan of Pepperidge Farm Goldfish and Milano cookies. Since I want to invest in companies I am familiar with, I started researching about Pepperidge Farm. This is what brought me to Campbell Soup (NYSE:CPB), the current owner of this beloved brand. However, as much as I love some of its products, I would like to share why at the moment I currently rate the company as hold, meaning that investors who already own the company may do well sticking with it, but investors who wish to initiate a position in the stock should and could wait for a more reasonable valuation.

Summary of previous coverage
This article can be seen as the fourth episode of a series in which I started researching and covering some of the most important players in the Packaged Food and Meats Industry. The main reasons I am looking at this industry are the following:

They sell products that everybody always needs. In other words, they are consumer non-cyclical companies
They usually enjoy high gross profit margin and a good return on common equity
They are able to return excess cash to the shareholders with interesting yields
In my previous articles I looked at The Kraft Heinz Company (KHC); The Hershey Company (HSY) and Hormel Foods (HRL).

The company
The company started its journey back in 1869 when Mr. Campbell, a fruit and vegetable vendor and Mr. Anderson, a commercial canner and packer formed their company. In 1922 the company officially became Campbell Soup Company. In 1961 the company acquired the brand that led me to research the company: Pepperidge Farm, a baked goods company founded by Margaret Rudkin. I would like to spend a few words on this business woman and her history because I think it is worth knowing. She lived in Fairfield, Connecticut on a property called Pepperidge Farm. She began baking all-natural stone ground whole wheat bread for her youngest son who suffered from severe allergies and asthma and couldn't eat most commercially processed foods. Bear in mind that at that time Mrs. Rudkin had never baked in her life. Her bread eventually turned out to be so good that her son's doctor prescribed it to other patients. This made her approach her local grocery store to see if he would be selling her bread. The grocer at first was reluctant but once he gave a taste he changed his mind. The rest is a beautiful growth story that led to the recalled acquisition of Pepperidge Farm by Campbell Soup.

Campbell Soup is mainly focused on North America which can be an advantage at the moment, given the strength of the U.S. dollar and the hit that many American companies are taking on their international sales. As shown below, the company has two divisions: Snacks and Meals & Beverages, which account respectively for 46% and 54% of sales. This makes the company's portfolio well-balanced with many leading brands in 13 core categories...

meer op: https://seekingalpha.com/article/454378 ... -sidelines?

Campbell Soup Stock: Focus On Execution
Jun. 02, 2023
Summary
Campbell Soup Company has seen renewed operating momentum, although entirely resulting from price instead of volumes.
The business is stable and is gradually deleveraging, as Campbell Soup Company has fortunately become a bit quieter on the corporate front.
Appeal is improving, but amidst higher interest rates, I see no screaming appeal yet.
In February, I called shares of Campbell Soup Company (NYSE:CPB) stable and uninspiring, as the company has re-found some rest after years of elevated activity with regard to acquisitions and divestments. With leverage under control, and Campbell performing well during the pandemic and inflationary times, I saw the situation as fair, with few immediate triggers seen for CPB shares, at the time trading in the mid-fifties.

Bron: https://seekingalpha.com/article/460910 ... -execution

Op vijf dagen : van 52 USD op 5 juni naar 46 USD op 8 juni.

"Campbell Soup Company is een van de grootste en bekendste producent van blikken soep en sauzen in de wereld. De producten worden verkocht in vrijwel alle landen ter wereld. Het bedrijf werd bekend door zijn 'gecondenseerde soep'; soep waaruit water was onttrokken en daardoor gemakkelijk te vervoeren en te gebruiken was en tegen een concurrerende prijs op de markt gezet kon worden. Wikipedia"

[sjos]

(ABM FN-Dow Jones) Campbell Soup heeft een bod gedaan op Sovos Brands ter waarde van ongeveer 2,7 miljard dollar. Dit maakten beide bedrijven maandagmiddag bekend.
Campell Soup wil 23,00 dollar per aandeel in contanten betalen en verwacht ongeveer 50 miljoen dollar aan synergievoordelen te realiseren.
Met deze strategische overname wil het bedrijf de divisie Campbell's Meals & Beverages verder diversifiëren. Sovos Brands is vooral bekend van Rao’s pastasaus, maar ook van merken zoals Michael Angelo’s en Noosa.
De transactie zal naar verwachting na twee jaar bijdragen aan de aangepaste winst per aandeel, exclusief eenmalige integratiekosten en kosten om de synergieën te realiseren.
Campbell is van plan de overnameprijs te financieren door middel van de uitgifte van nieuwe leningen.
De transactie moet nog worden goedgekeurd door de aandeelhouders van Sovos Brands. Ook moeten de toezichthouders groen licht geven.
Campbell Soup denkt de transactie voor het jaareinde te kunnen afronden.
Het aandeel Sovos Brands sloot vrijdag op 18,02 dollar en lijkt bij opening 25 procent te stijgen. Het aandeel van Campbell lijkt bijna 2 procent lager te openen.

Bron: ABM Financial News

[sjos]

Amerikaanse voedingsmiddelenbedrijven gaan op dealjacht nu de pandemische groei afneemt
Amerikaanse bedrijven in verpakte voedingsmiddelen zijn op weg naar een stortvloed van deals in een poging om hun merkenportfolio's te vernieuwen nu hun fortuin uit het pandemie-tijdperk afneemt en de voordelen van prijsverhogingen beginnen te verminderen.
Vorige maand sloot Campbell Soup een deal van $2,7 miljard voor Rao's sausmaker Sovos Brands. Unilever kocht Yasso, een diepvriesyoghurtmerk in Noord-Amerika, terwijl Snickers-maker Mars de maker van gezonde voeding Kevin's Natural Foods overnam.
"Er is een mooie opleving geweest in M&A (fusies en overnames) in de voedingsmiddelenindustrie in de eerste helft van het jaar," zei Michael Milani, uitvoerend managing director en principal bij adviesbureau Baker Tilly.
"Het is een groot thema geweest, en we verwachten dat dit in de tweede helft van 2023 en begin 2024 zal aanhouden."
Dit ondanks hogere financieringskosten die bedrijven die op zoek zijn naar overnames onder druk zetten.
De waarde van de deals in de Amerikaanse voedingsmiddelen- en drankenindustrie daalde dit jaar met bijna 3% tot ongeveer $10,39 miljard, volgens gegevens van LSEG. Maar de volumes stegen met 17,5% tot 248 per 1 september, waardoor de sector een lichtpuntje is op het gebied van deals.
Het totale aantal deals in alle industriële sectoren daalde in dezelfde periode met 4%, zo bleek uit de gegevens. "Grote voedingsbedrijven moeten meer nieuwe concepten, nieuwe smaakprofielen en nieuwe voedingsmiddelen toevoegen omdat hun oude merken - hoewel ze nog steeds groeien - niet op een zinvolle manier groeien," zei Milani.
De stijging van het aantal deals komt doordat het verkoopvolume bij bedrijven als Kraft Heinz en Campbell de afgelopen zes kwartalen is gedaald als gevolg van een zwakke vraag, terwijl ook de voordelen van prijsverhogingen afnemen.
"Ik verwacht dat het aantal fusies en overnames zal blijven toenemen," zei Sarah Henry, managing director en portefeuillebeheerder bij Logan Capital Management, dat aandelen heeft in PepsiCo en Mondelez International.
Bedrijven in verpakte voedingsmiddelen "worden nu geconfronteerd met een aantal moeilijke vergelijkingen op het gebied van organische (omzet) en zijn op zoek naar enkele strategische, categorie-specifieke M&A-doelwitten die hen door de komende jaren zullen loodsen," zei Henry.
Cheerios graanproducent General Mills heeft fusies en overnames aangemerkt als een belangrijk doel voor de komende jaren, waarbij leidinggevenden zeggen dat het op dit moment een "goed klimaat voor fusies en overnames" is.
Voor Mondelez zijn bolt-on overnames de manier om te gaan, zei Luca Zaramella, financieel directeur van de Oreo-maker, onlangs op een Barclays-conferentie.
Vorige maand meldde Reuters dat Twinkies-snackgebakmaker Hostess Brands een verkoop aan het onderzoeken was en dat Mondelez en Hershey mogelijk in de race waren om het te kopen.
Analisten van J.P. Morgan zeiden dat ze een oogje zouden kunnen hebben op Hostess om buiten Noord-Amerika uit te breiden.
"De meeste grote bedrijven in verpakte voedingsmiddelen hebben ... ijverig hun schulden verminderd en hun balans verbeterd (door de pandemie) ... dus ze hebben de risicocapaciteit en risicobereidheid om grootschalige overnames na te streven," zei analist Arun Sundaram van CFRA Research.
"Deze bedrijven in verpakte voedingsmiddelen moeten manieren blijven vinden om relevant te blijven ... En een van de gemakkelijkste manieren om dat te doen is door middel van fusies en overnames."

Bron: https://nl.marketscreener.com/koers/aan ... -44803875/

[sjos]

Ik denk eraan om terug in Kraft Heinz Company in te stappen. Enkel voor het dividend ivm dalende korte termijn rentes.
Een Amerikaans grootvaders aandeel dat recent toch in alcohol distributie is gestapt.
"Dividend Yield as of March 3: 5.12%

"The Kraft Heinz Company (NASDAQ:KHC) is an Illinois-based multinational food company. It has faced challenges in establishing a strong position in recent years, relying on cost-cutting measures to boost net income. While this strategy has yielded short-term gains—such as a nearly 21% increase in net income in 2023—earnings declined in 2024. However, sustained profit growth becomes difficult without meaningful revenue expansion. As a result, the company may not appear particularly attractive to investors at the moment. The stock has declined by nearly 11% in the past 12 months."

Yahoo finance

"Kraft Heinz (NasdaqGS:KHC) Launches 77-Calorie Crystal Light Vodka Refreshers For US$10.
KHC

Kraft Heinz saw its share price rise by 3.8% last month, a period marked by the launch of their Crystal Light Vodka Refreshers, a move aligned with consumer preferences for lower-calorie alcoholic beverages. This product introduction underscores Kraft Heinz's focus on tapping into the expanding market for hard seltzers, which could amplify investor interest. Concurrently, the company's full-year earnings report highlighted a significant increase in net income despite a drop in sales, which might have reassured investors regarding its profitability. Meanwhile, the broader market, including the Dow Jones Industrial Average, experienced volatility amidst tariff discussions and fluctuating economic data, but Kraft Heinz's price gain stood out against a backdrop of a 3.1% market decline. Additionally, their initiative to introduce HEINZ Flavor Tour Condiments reflects a diversification strategy that may be positively influencing investor perception.
Over the past five years, Kraft Heinz has delivered a total shareholder return of 58.76%, highlighting its relatively strong performance. Notably, the company completed significant share buybacks, repurchasing 32.07 million shares amounting to US$1.10 billion, which likely buoyed the stock's value. Additionally, efforts to tap into renewable energy with initiatives like the renewable green hydrogen agreement reflect a commitment to sustainability, which can enhance investor confidence.
"
[email protected] (Simply Wall St)
Wed, March 5, 2025

Iemand die dit aandeel opvolgt ?

[ILAD]

Ik denk eraan om terug in Kraft Heinz Company in te stappen. Enkel voor het dividend ivm dalende korte termijn rentes.
Een Amerikaans grootvaders aandeel dat recent toch in alcohol distributie is gestapt.
"Dividend Yield as of March 3: 5.12%

"The Kraft Heinz Company (NASDAQ:KHC) is an Illinois-based multinational food company. It has faced challenges in establishing a strong position in recent years, relying on cost-cutting measures to boost net income. While this strategy has yielded short-term gains—such as a nearly 21% increase in net income in 2023—earnings declined in 2024. However, sustained profit growth becomes difficult without meaningful revenue expansion. As a result, the company may not appear particularly attractive to investors at the moment. The stock has declined by nearly 11% in the past 12 months."

Yahoo finance

"Kraft Heinz (NasdaqGS:KHC) Launches 77-Calorie Crystal Light Vodka Refreshers For US$10.
KHC

Kraft Heinz saw its share price rise by 3.8% last month, a period marked by the launch of their Crystal Light Vodka Refreshers, a move aligned with consumer preferences for lower-calorie alcoholic beverages. This product introduction underscores Kraft Heinz's focus on tapping into the expanding market for hard seltzers, which could amplify investor interest. Concurrently, the company's full-year earnings report highlighted a significant increase in net income despite a drop in sales, which might have reassured investors regarding its profitability. Meanwhile, the broader market, including the Dow Jones Industrial Average, experienced volatility amidst tariff discussions and fluctuating economic data, but Kraft Heinz's price gain stood out against a backdrop of a 3.1% market decline. Additionally, their initiative to introduce HEINZ Flavor Tour Condiments reflects a diversification strategy that may be positively influencing investor perception.
Over the past five years, Kraft Heinz has delivered a total shareholder return of 58.76%, highlighting its relatively strong performance. Notably, the company completed significant share buybacks, repurchasing 32.07 million shares amounting to US$1.10 billion, which likely buoyed the stock's value. Additionally, efforts to tap into renewable energy with initiatives like the renewable green hydrogen agreement reflect a commitment to sustainability, which can enhance investor confidence.
"
[email protected] (Simply Wall St)
Wed, March 5, 2025

Iemand die dit aandeel opvolgt ?

Warren Buffett