Campbell Soup Company (NYSE:CPB) stock fell 2.56% (As on March 7, 11:27:26 AM UTC-4, Source: Google Finance) after the company posted better than anticipated results for the second quarter of FY 24. Excluding items impacting comparability, adjusted gross profit was $772 million compared to $763 million in the prior year. Adjusted gross profit margin increased 70 basis points to 31.4% driven by supply chain productivity improvements, net price realization, the benefit from cost savings initiatives and favorable volume / mix which combined more than offset higher cost inflation and other supply chain costs. The adjusted EBIT increased 1% to $364 million primarily due to higher adjusted gross profit, partially offset by higher adjusted other expenses, higher adjusted research and development expenses and higher adjusted administrative expenses. Net interest expense was $46 million compared to $45 million. Through the second quarter, Campbell has achieved $915 million of total savings under its multi-year cost savings program, inclusive of Snyder’s-Lance synergies. The company remains on track to deliver savings of $1 billion by the end of fiscal 2025.

CPB in the second quarter of FY 24 has reported the adjusted earnings per share of 80 cents, beating the analysts’ estimates for the adjusted earnings per share of 77 cents, according to the Zacks Consensus Estimate. The company had reported 1 percent decline in the adjusted revenue growth to $2.46 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $2.42 billion. Organic net sales also dipped 1% year over year. The downside can be attributed to the soft volume/mix (down 2% year over year), somewhat offset by net price realization (up 1%).

Additionally, the cash flow from operations was $684 million compared to $732 million primarily due to lower cash earnings. Capital expenditures were $263 million compared to $155 million in the prior year. At the end of the second quarter, the company had approximately $301 million remaining under the current $500 million strategic share repurchase program and approximately $75 million remaining under its $250 million anti-dilutive share repurchase program.

For fiscal 2024, the company expects net sales growth in the range of a 0.5% decline to an increase of 1.5%. Organic sales growth is likely to range between flat and an increase of 2%. Adjusted EBIT is forecasted to be up 3-5%. Adjusted earnings per share is envisioned to increase 3-5% to $3.09-$3.15.