CAMDEN, NJ. — Campbell Soup Co. expects to complete its acquisition of Sovos Brands Inc. in March, which bodes well for future quarterly financial results.

In the second quarter ended Jan. 28, Campbell Soup had net earnings of $203 million, equal to 68¢ per share on the common stock, which marked a 12% decrease from $232 million, or 78¢ per share, in the previous year’s second quarter.

Net sales fell 1% to $2.46 billion from $2.49 billion. Organic sales also were down 1%. Volume/mix decreased 2%, which offset a net price realization benefit of 1%.

“While it is true that category trends have slowed over the last year, I'm encouraged by a variety of stabilizing consumer indicators like consumer sentiment, household penetration and average categories purchased,” said Mark A. Clouse, president and chief executive officer, in a March 6 earnings call. “However, we are also continuing to see economic pressure impacting select categories and certain consumer demographics. While we expect these trends to improve over time, we’re certainly not there yet.”

 Campbell Soup reaffirmed its full-year outlook of net sales in a range of down 0.5% to up 1.5% when compared to fiscal 2023. The outlook did not include the pending acquisition of Sovos Brands.

“We are eagerly anticipating the closing of the Sovos Brands acquisition in the coming week, adding the best volume-driven growth story in food to our portfolio,” Clouse said.

Plans were announced in August 2023 to acquire Sovos Brands, which manufactures sauces, yogurts and frozen prepared foods marketed under brands such as Rao’s, noosa and Michael Angelo’s. The US Federal Trade Commission in late October sent a second letter to Campbell Soup Co. asking for additional information on the transaction. Both companies have complied with the second request, Clouse said March 6.

Within the company’s Meals & Beverages business, second-quarter sales of $1.38 billion were down 2% from $1.41 billion. Gains in Canada and foodservice partially offset declines in US retail products, primarily in US soup, beverages and Pace Mexican sauces.

Sovos Brands would become part of the Meals & Beverages business.

“When paired with our Meals & Beverages iconic category-leading brands and our distinctive fast-growing Pacific Foods brand, the Sovos Brands portfolio will strengthen the division for years to come,” Clouse said. “In fact, although not an apples-to-apples comparison, if we were to simply overlay Sovos results in the last quarter with our Meals & Beverages results, we would have gained approximately four points of organic top-line growth.”

Within Snacks, sales of $1.07 billion were flat compared to $1.08 billion in the previous year’s second quarter. Excluding the impact from the divestiture of the Emerald nuts business, organic net sales rose 1%, driven by increases in cookies and crackers, primarily Goldfish crackers and Lance sandwich crackers, and in salty snacks. Within salty snacks, sales increases in Kettle Brand and Cape Cod potato chips more than offset declines in Pop Secret popcorn and Late July snacks.

In the six months ended Jan. 28 companywide, net earnings of $437 million, or $1.47 per share on the common stock, were down 17% from $529 million, or $1.77 per share, in the same time of the previous year. Net sales declined 2% to $4.97 billion from $5.06 billion.