Refreshment focuses on the water dispenser/cooler, office coffee service and vending sectors, while also taking an in-depth look into products for vending from bottled water and drinks, to snacks and confectionery. It also focuses on hydration, health and wellness, new technologies and environmental and social responsibility issues.
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Keurig Dr Pepper (KDP) has reported an increase in Q3 net sales of 2.3% to $3.89 billion, with a steady performance in US refreshment beverages and growth internationally.
This quarter saw the $990 million acquisition of energy brand Ghost Lifestyle, marking KDP’s expansion into the fast-growing energy category.
For Q3, KDP reported an adjusted earnings per share (EPS) of $0.51, a 6.3% increase over the previous year. GAAP operating income grew by 0.7% to $902 million, while adjusted operating income saw a 7.5% boost, reaching $1.05 billion.
The US refreshment beverages segment led the way with a 5.3% sales increase to $2.4 billion, largely supported by new partnerships and strong volume growth. In contrast, net sales for the US coffee segment faced a 3.6% decline to $1 billion. Despite a 2.7% increase in volume/mix, the segment was impacted by a 6.3% decrease in net price realisation, reflecting ongoing price pressures in the market.
K-Cup Pod shipments dipped 0.4%, reflecting owned and licensed market share gains, as the at-home coffee category remained relatively flat.
Internationally, KDP achieved a 0.4% increase, and a stronger 6.5% rise on a constant currency basis. Adjusted operating income for this segment increased by 16.6%, supported by net sales growth and net productivity savings.
KDP reaffirmed its fiscal 2024 guidance, projecting mid-single-digit growth in net sales and high-single-digit growth in adjusted EPS on a constant currency basis.
Commenting on the results, KDP's chief executive officer, Tim Cofer, stated: "Three quarters into the year, we remain on track to achieve our full year outlook, while notching significant progress against our multi-year strategic agenda".
"[The]...announcement of our acquisition of Ghost is yet another such step, accelerating our portfolio evolution toward growth-accretive and consumer-preferred spaces. In Q3, we were encouraged by further improvement in our volume/mix performance despite a muted operating environment and also demonstrated building cost discipline throughout the organisation. Both are important elements underpinning our confidence as we focus on a strong finish to 2024 and plan for a healthy 2025."
#KeurigDrPepper #financialresults
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