Keurig Dr Pepper reported a rise in second-quarter revenue and profit, aided by higher prices and steady demand for its energy drinks and sodas in the United States and international markets.
Keurig Dr Pepper, like its bigger rival Coca-Cola, has seen steady sales of soft drinks, typically categorised as ‘affordable luxuries’, despite increasing prices to counter rising costs.
The company launched a variety of new drinks such as Schweppes mocktails and Dr Pepper Strawberries & Cream sodas internationally to drive demand and boost sales growth.
Quarterly Highlights
Keurig Dr Pepper’s average selling prices rose 1.6% in the second quarter ended 30 June, and sales volumes increased 1.8%.
The company’s adjusted profit rose 7.1% to 45 cents per share, in line with LSEG estimates.
Net sales rose 3.5% to $3.92 billion (€3.61 billion), meeting Wall Street analyst expectations.
The company reaffirmed its forecast of a mid-single-digit percentage rise in fiscal net sales and high-single-digit percentage growth in adjusted profit.
‘Healthy’ Results
Commenting on the performance, CEO Tim Cofer stated, “Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth. Strong execution drove our performance, as we continued to advance our long-term strategic agenda.
“Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market — all underpinned by an unrelenting focus on cost efficiency and capital discipline.”
In June of this year, Dr Pepper emerged as the second favourite carbonated soft drink brand in the US, sharing the spot with Pepsi.
News By Reuters, additional reporting by ESM.