In this photo illustration, cans of Dr Pepper soda are displayed on June 03, 2024 in San Anselmo, California.
Justin Sullivan | Getty Images
Keurig Dr Pepper reported quarterly earnings and revenue that met analysts’ expectations on Thursday as higher prices fueled its U.S. soda sales.
Shares of the company rose 2% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 45 cents adjusted, in line with estimates
- Revenue: $3.92 billion, in line with estimates
The beverage company reported second-quarter net income of $515 million, or 38 cents per share, up from $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 pricing and currency changes, increased 1.8% during the quarter, while prices were up 1.6% compared with the year-ago period.
Keurig Dr Pepper’s U.S. refreshment beverages division, which includes Snapple, Canada Dry and Sunkist, reported sales growth of 3.3%. Prices for its drinks were up 2.9% compared with the year-ago period.
Dr Pepper also recently overtook Pepsi as the second-most consumed soda in the U.S., trailing only Coca-Cola, according to Beverage Digest. Its parent company’s larger rivals have seen their performances diverge in recent quarters; PepsiCo’s price hikes have driven away some consumers from its drinks and snacks, while Coca-Cola’s premium offerings like Fairlife and strong international demand have bolstered its results.
Keurig Dr Pepper’s U.S. coffee division’s sales shrank 2.1% to $1 billion in the quarter, fueled by a 2.9% decline in pricing. Shipments of its K-Cup pods were roughly flat, which the company credited to strong market share trends.
The company’s international division saw sales climb 15.5% for the quarter, but it accounts for less than a sixth of Keurig Dr Pepper’s revenue.
The company also reiterated its prior full-year outlook of constant currency revenue growth in the mid-single digit range and adjusted earnings per share growth in the high-single digits.