Keurig Dr Pepper beat estimates for third-quarter profit and sales on Tuesday, buoyed by steady US demand for its higher-priced energy drinks and carbonated soft drinks.
Net sales for the third quarter increased 70.6% to $7.3 billion and, on a constant currency basis, net sales advanced 70.1%. Excluding the contribution from the JDE Peet’s acquisition, legacy KDP net sales increased 8.6%, driven by volume/mix growth of 6.5% and favorable net price realization of 2.1%.
Its US coffee segment saw volume growth of 6.9% after declining 4% a year earlier.
The beverage maker has maintained its quarterly sales momentum while increasing investment in higher-cost brands, including Dr Pepper Zero Sugar, Bloom Pop prebiotic soda, and Ghost energy drinks.
In the earnings release, CEO Tim Cofer stated, “We are pleased with our third quarter results, which featured meaningful net sales and EPS growth, along with healthy free cash flow. Our refreshment beverages portfolio maintained its double-digit sales growth momentum and we drove solid results in coffee, led by strong JDE Peet’s profitability. Notably, we achieved these results while stepping up investment behind our brands and capabilities to position our two future companies for success. As we enter the final stretch of the year, we are on track to deliver our 2026 financial commitments and we remain focused on achieving the remaining milestones to enable our planned separation.”
Looking ahead, the company reaffirmed its annual forecast for the third time this fiscal year, projecting net sales of roughly $8.3-$8.4 billion and a 7- 8 percentage-point contribution to earnings-per-share growth from the JDE Peet’s acquisition.
Keurig Dr Pepper shares rose almost 3% following the announcement.
By CEO NA Editorial Staff
