Campbell Soup's Q2 Highlights: 12% Top-Line Growth, Earnings Beat, Brand Strength, FY23 Sales Outlook Boost & More

Campbell Soup Co CPB reported second-quarter FY23 sales growth of 12% year-on-year to $2.48 billion, beating the consensus of $2.44 billion.
Organic net sales rose 13% as favorable inflation-driven net price realization was partially offset by volume / mix declines.
Net sales from the Meals & Beverages segment rose 10%, and the Snacks segment climbed 15%.
Gross margin expanded 20 basis points Y/Y to 30.5%. Adjusted EBIT of $362 million increased 14% Y/Y.
Total costs and expenses increased 13.2% to $2.1 billion.
Adjusted EPS of $0.80 beat the analyst consensus of $0.74.
The company held $158 million in cash and equivalents as of Jan. 29, 2023. Cash provided by operating activities for six months totaled $732 million.
Total debt as of Jan. 29, 2023, totaled $4.6 billion.
Outlook: Campbell raised the lower end of the prior FY23 adjusted EPS guidance and updated the forecast from $2.90-$3.00 to $2.95-$3.00 versus the consensus of $3.00.
The company raised its FY23 sales growth outlook from 7%-9% to 8.5%-10%.
Campbell said it remains on track to deliver savings of $1 billion by the end of fiscal 2025.
Price Action: CPB shares are trading higher by 1.49% at $52.91 on the last check Wednesday.
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