This photo illustration displays a can of Dr Pepper soda on June 3, 2024 in San Anselmo, California.
Justin Sullivan | Getty Images
Keurig Dr. Pepper The company on Thursday reported quarterly profit and revenue in line with analysts’ expectations, as higher prices boosted U.S. sales of soda drinks.
The company’s shares rose 5% in morning trading.
Here’s how what the company reported compares to Wall Street expectations, based on an analyst survey by LSEG.
Earnings per share: Adjusted 45 cents, in line with expectations. Revenue: $3.92 billion, in line with expectations.
The beverage company said second-quarter net income was $515 million, or 38 cents a share, up from $503 million, or 36 cents a share, a year earlier.
Excluding items, Keurig Dr Pepper earnings per share were 45 cents.
Net sales increased 3.5 percent to $3.92 billion. Volume, excluding price and foreign exchange fluctuations, increased 1.8 percent during the quarter and prices increased 1.6 percent compared to the same period last year.
Keurig Dr Pepper’s U.S. soft drink division, which includes Snapple, Canada Dry and Sunkist, reported a 3.3% increase in sales. Beverage prices rose 2.9% from the same period last year. Dr Pepper Creamy Coconut Drink was the company’s most successful limited-edition drink.
Dr. Pepper has also recently Pepsi It is the second most consumed soda in the United States. coca colaAccording to Beverage Digest, major rivals of Coca-Cola’s parent company have seen mixed results in recent quarters, with PepsiCo seeing price hikes that have led some customers to turn away from drinks and snacks, while Coke has seen its results buoyed by premium products such as Fairlife and strong demand from overseas.
Keurig Dr Pepper executives said sales of carbonated beverages are strong, but sales of still beverages and energy drinks are being further pressured by an “uneven” consumer environment.
Keurig Dr Pepper’s U.S. coffee sales fell 2.1% in the quarter to $1 billion as prices fell 2.9%. Shipments of K-Cup pods were roughly flat, which the company attributed to strong market share trends.
The company is also trying to attract budget-conscious consumers by emphasizing in its marketing that drinking coffee at home is more affordable than buying it at a coffee shop, and is promoting cold brew with K-Cup cold brew pods and other new products, as it works to win over loyal Starbucks and Dunkin’ Donuts fans.
While cold drinks account for about three-quarters of Starbucks’ sales, cold coffee accounts for less than 20% of at-home coffee consumption, Chief Executive Officer Tim Cofer said on the company’s conference call.
Sales at the company’s international division grew 15.5% in the quarter, but still account for less than a sixth of Keurig Dr Pepper’s revenue.
The company also reiterated its previous full-year guidance of mid-single-digit revenue growth and high-single-digit adjusted earnings per share growth at constant exchange rates.
