Keurig Dr Pepper (KDP) has posted 6.1% growth in net sales to $3.08 billion for its first quarter, driven by “strong growth” across its packaged beverages, beverage concentrates and Latin America beverages units.
For Q1, KDP recorded 13.2% growth in net sales for its packaged beverages segment, led by Canada Dry, Dr Pepper, 7UP, A&W, Sunkist and Squirt CSDs, Mott’s and Snapple, as well as growth in Core Hydration, Polar seltzers, Hawaiian Punch and Vita Coco.
Meanwhile, the company’s coffee systems segment recorded net sales of $1.09 billion, representing a decline of 4.3% on last year’s $1.14 billion figure, caused by supply chain challenges.
The segment saw pod and brewer shipment volume both decline by 5.2% versus the year-ago quarter. The pod performance reflected the prioritisation of production to rebuild inventory, while the decline in brewer shipment volume reflected comparison with “exceptionally strong” growth of 61% in Q1 last year.
KDP’s Latin America beverages business saw its net sales for Q1 increase 16.8% to $146 million, while the company’s beverage concentrates division witnessed an increase of 9.5% to $359 million.
Meanwhile, the company’s GAAP operating income grew 51% to $966 million, primarily reflecting KDP’s strong net sales performance in the quarter.
KDP’s chairman and CEO, Bob Gamgort, said: “We delivered another quarter of strong revenue growth, reflecting the power of our brand portfolio and the quality of our execution at retail. Margins were impacted by accelerating inflation, which outpaced the timing of pricing actions, and the previously discussed coffee supply chain disruption.”
He continued: “We made significant progress during the quarter on increasing coffee production and rebuilding inventories, and we implemented additional pricing actions across most categories. Consequently, we now expect to deliver net sales growth in the high-single-digit range and continue to expect to deliver Adjusted EPS growth in the mid-single-digit range for the year.”
© FoodBev Media Ltd 2022
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