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."

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