Keurig Dr Pepper (KDP, Financial) reported higher-than-expected profits and sales, driven by a surge in U.S. demand for its soft drinks. However, rising raw coffee bean costs negatively impacted its U.S. coffee business revenue. The company appointed two new independent board members, while Executive Chairman Bob Gamgort transitioned to Non-Executive Chairman.
Despite the positive earnings results and strong U.S. beverage sales, KDP's stock saw a slight decline, as soaring coffee prices tempered investor enthusiasm. The company reported an adjusted earnings per share (EPS) of $0.42 and a 5% year-over-year revenue increase to $3.64 billion, surpassing Visible Alpha's expectations.
In the U.S., KDP's refreshment beverage segment saw an 11% sales increase to $2.3 billion, attributed to an 8% rise in volume/mix growth and a 3% favorable net price realization. Conversely, U.S. coffee sales plummeted nearly 4% to $900 million due to a decline in volume/mix and pricing adjustments to counter rising coffee bean costs. International sales fell 6% to $400 million.
Keurig Dr Pepper reaffirmed its full-year outlook, anticipating high single-digit percentage growth in adjusted EPS and mid-single-digit percentage growth in sales at constant currency.
