In this photo illustration, cans of Dr Pepper soda are seen on June 3, 2024 in San Anselmo, California.
Justin Sullivan |
Keurig Dr Pepper The company on Thursday reported quarterly earnings and revenue that met analysts’ expectations as higher prices boosted soda sales within the U.S.
The company’s shares rose 5% in morning trading.
Here’s what the corporate reported in comparison with Wall Street expectations, based on an analyst survey conducted by LSEG:
- Earnings per share: 45 cents adjusted, in step with estimates
- Revenue: 3.92 billion dollars, in step with estimates
The beverage maker reported second-quarter net income of $515 million, or 38 cents per share, up from $503 million, or 36 cents per share, a yr earlier.
Excluding special items, Keurig Dr Pepper earned 45 cents per share.
Net sales rose 3.5% to $3.92 billion. Volume (excluding price and currency changes) increased 1.8% within the quarter, while prices rose 1.6% in comparison with the identical period last yr.
Keurig Dr Pepper’s U.S. soft drinks division, which incorporates Snapple, Canada Dry and Sunkist, reported 3.3% sales growth. Prices for the drinks rose 2.9% in comparison with the identical period last yr. The Dr Pepper Creamy Coconut drink was the corporate’s most successful limited-time beverage.
Dr Pepper also recently overtook Pepsi because the second most consumed soda within the USA, only Cokesaid Beverage Digest. Performances on the parent company’s larger rivals have diverged in recent quarters; PepsiCo’s price increases have driven some consumers away from its drinks and snacks, while Coca-Cola’s premium offerings resembling Fairlife and robust international demand have boosted results.
While soda sales have been stable, sales of still beverages and even energy drinks are under more pressure as a consequence of the “uneven” consumer environment, Keurig Dr Pepper executives said in a conference call.
Keurig Dr Pepper’s U.S. coffee division’s revenue fell 2.1% to $1 billion within the quarter, reflecting a 2.9% price decline. K-Cup pod shipments were kind of flat, which the corporate attributed to strong market share trends.
The company also uses its marketing to emphasise that it’s cheaper to drink coffee at home than to purchase it in a café, hoping to appeal to frugal shoppers. The company can also be moving into the cold brew coffee market with K-Cup cold brew pods and other recent products to capture loyal Starbucks and Dunkin’ fans.
While cold beverages account for about three-quarters of Starbucks’ sales, cold coffee represents lower than 20 percent of coffee consumption at home, said Tim Cofer, CEO of Keurig Dr Pepper, on the conference call.
The company’s international division reported a 15.5% increase in sales in the course of the quarter, nevertheless it accounts for lower than one-sixth of Keurig Dr Pepper’s sales.
The company also reiterated its previous full-year guidance, which called for mid-single-digit currency-adjusted revenue growth and high-single-digit adjusted earnings per share growth.
