Campbell Soup Co (CPB  ) reported a first-quarter FY24 sales decline of 2% year-on-year to $2.52 billion, in line with the analyst consensus.

Adjusted EPS of $0.91 beat the analyst consensus of $0.88. Organic net sales declined 1% year-on-year.

Net sales from the Meals & Beverages segment declined 4% year-on-year, and the Snacks segment fell by 1%.

Adjusted gross margin declined by 10 bps year-on-year to 32.1%, primarily driven by unfavorable volume and mix. Adjusted EBIT of $407 million decreased by 9% year-on-year primarily due to lower adjusted gross profit.

Total costs and expenses increased 1.0% to $2.16 billion.

The company held $91 million in cash and equivalents as of October 29, 2023. Operating cash flow for Q1 totaled $174 million.

The company said it remains on track to deliver savings of $1 billion by the end of fiscal 2025. It expects the acquisition of Sovos Brands, Inc. (SOVO  ) to close in CY24.

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

The company reiterated FY24 sales of 0.5% decline to 1.5% growth or $9.310 billion - $9.497 billion versus the consensus of $9.420 billion.

Price Action: CPB shares are trading higher by 1.59% at $41.00 in premarket on the last check Wednesday.