Keurig Dr Pepper, a leading beverage company, has announced its financial results for the third quarter, revealing an increase in both earnings and sales. Here are the key details:
Profit
The company reported a profit of $518 million, or 37 cents a share, compared to $180 million, or 13 cents a share, in the same quarter last year.
Earnings
Adjusted earnings, excluding one-time items, reached 48 cents a share. This surpasses analysts’ expectations, who had predicted 47 cents a share.
Sales
Keurig Dr Pepper experienced a rise in revenue, reaching $3.81 billion, compared to $3.62 billion in the year-ago quarter. Analysts had forecasted sales of $3.77 billion.
Factors Influencing Performance
During the third quarter, several factors influenced Keurig Dr Pepper’s performance:
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Prices: The company witnessed a 5.5% increase in prices, contributing to the growth in revenue. This offset a slight decline in volumes. Keurig Dr Pepper noted that most categories demonstrated manageable elasticity.
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Coffee: Sales in the U.S. coffee business declined by 3.2% to $1.01 billion, with volumes experiencing a steeper decrease compared to the company’s main beverage business. The decline in this category can be attributed to the gradual return of people to offices and a decrease in coffee consumption at home. Revenue from coffee pods also dropped by 4.8% in the third quarter.
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Market Share: Keurig Dr Pepper expanded its share in the refreshment beverages market during the quarter. The company observed gains in dollar share in the soda market, led by Dr. Pepper and Squirt brands. Additionally, they experienced growth in the unsweetened sparkling water category, credited to the Polar brand, as well as gains from Vita Coco, C4 Energy, and Mott’s apple juice.
Future Outlook
Keurig Dr Pepper has affirmed its guidance for the future. The company expects 5% to 6% growth in net sales on a constant currency basis, along with 6% to 7% growth in adjusted earnings per share.
