Campbell Soup Company ( CPB ) reported a second-quarter FY24 decline of 1.2% year-on-year to $2.46 billion, beating the analyst consensus estimate of $2.44 billion.

Net sales from the Meals & Beverages segment, both reported and organic, decreased 2%, and the Snacks segment was flat.

Gross margin expanded 110 basis points Y/Y to 31.6%. Adjusted EBIT of $364 million increased by 1% Y/Y.

Total costs and expenses increased 0.8% to $2.139 billion. Adjusted EPS of $0.80 beat the consensus estimate of $0.77.

The company held $169 million in cash and equivalents as of January 28, 2024. Operating cash flow for six months totaled $684 million.

“We are excited about the anticipated completion of the acquisition of Sovos Brands which will bring incremental growth to our Meals & Beverages division and continue the transformation of our highly advantaged portfolio,” said President and CEO Mark Clouse.

Outlook: Campbell reaffirms FY24 adjusted EPS outlook of $3.09-$3.15 versus the consensus of $3.07.

The company continues to see FY24 sales of $9.31 billion – $9.497 billion versus an estimate of $9.37 billion.

Price Action: CPB shares are trading higher by 2.68% at $44.10 on the last check Wednesday.