Keurig Dr Pepper (KDP) recorded net sales of $2.73 billion in its third-quarter results, its first figures to combine the performances of both Keurig Green Mountain and Dr Pepper Snapple.
During the quarter, the company successfully completed the merger between the companies on 9 July. Net sales more than doubled, primarily reflecting the impact of the merger.
On an adjusted pro forma basis – which are non-GAAP financial measures and assume the merger occurred in December 2016 – the company’s net sales grew 2.9%.
Net income increased approximately 28% to $148 million, compared to $116 million in the year-ago period. Adjusted pro forma net income advanced 39% to $414 million, primarily reflecting the growth in adjusted pro forma operating income and a significantly lower effective tax rate, the company said.
Since the merger closed, KDP has repaid approximately $550 million of debt, due to “strong operating profit results and effective working capital management”.
During the quarter, KDP agreed a deal to acquire US-based premium water company Core Nutrition for $525 million.
And last week, the firm entered into a long-term partnership with Danone Waters of America to sell, distribute and merchandise Evian water across the US.
Commenting on the results, KDP CEO Bob Gamgort said: “We’re off to a great start as a combined company. Our new organisation is working well and delivered a strong quarter, with both top- and bottom-line growth and market share strength across our major categories.
“We also repaid approximately $550 million of debt since the merger close. We remain confident in our outlook for 2018 and the long-term value creation framework we shared at the time of the announcement of the merger.”
KDP employs more than 25,000 people and operates more than 120 offices, manufacturing plants, warehouses and distribution centres across North America.
The company’s brands include Snapple, Canada Dry, Dr Pepper, Keurig, Green Mountain Coffee Roasters and Sunkist.
© FoodBev Media Ltd 2019
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