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Keurig Dr Pepper profits meet estimates as higher prices drive U.S. soda sales – NBC 6 South Florida

Posted on by darion

  • Keurig Dr Pepper’s second-quarter revenue and earnings met Wall Street expectations.
  • The company’s U.S. coffee business struggled, while its domestic soft drinks business saw sales rise thanks to price increases.
  • The beverage giant also reiterated its outlook for the full year.

Keurig Dr Pepper Co. on Thursday reported quarterly financial results and revenue that met analysts’ expectations as higher prices weighed on U.S. soda sales.

The company’s shares rose 2% in pre-market trading.

Here’s what the company said in the report, compared to Wall Street expectations, based on an analyst survey conducted by LSEG:

  • Earnings per share: 45 cents, adjusted, in line with estimates
  • Revenue: $3.92 billion, in line with estimates

The beverage company reported net income of $515 million, or 38 cents per share, in the second quarter, compared with $503 million, or 36 cents per share, a year earlier.

Excluding items, Keurig Dr Pepper earned 45 cents per share.

Net sales rose 3.5% to $3.92 billion. Volume, which excludes prices and currency changes, rose 1.8% during the quarter, while prices rose 1.6% compared with the same period a year earlier.

Keurig Dr Pepper’s U.S. soft drinks division, which includes Snapple, Canada Dry and Sunkist, saw sales rise 3.3%. Beverage prices rose 2.9% compared with the same period last year.

Dr. Pepper recently overtook Pepsi to become the second-most consumed soda in the U.S., trailing only Coca-Cola, according to Beverage Digest. The parent company’s larger rivals have posted mixed results in recent quarters; PepsiCo’s price hikes have scared some consumers away from its drinks and snacks, while Coca-Cola’s premium offerings, such as Fairlife and strong international demand, have boosted its results.

Keurig Dr Pepper’s U.S. coffee unit saw sales fall 2.1% to $1 billion in the quarter, driven by a 2.9% price drop. K-Cup pod shipments were about flat, which the company attributed to strong market share trends.

The company’s international sales rose 15.5% in the quarter, but they accounted for less than one-sixth of Keurig Dr Pepper’s revenue.

The company also reaffirmed its previous full-year guidance of constant-currency revenue growth in the mid-single-digit range and adjusted earnings per share growth in the high-single-digit range.