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.
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.