Keurig Dr Pepper (KDP) has reported a 7.6% rise in net sales to $3.25 billion for its third quarter, with each of the company’s business segments posting growth.
KDP’s GAAP operating income increased 5.6% to $795 million in the quarter, compared to $753 million in the year-ago period.
Both of KDP’s largest units saw overall net sales growth in Q3 – with packaged beverages growing its net sales by 6.9%, while coffee systems recorded a 5.3% increase.
The latter segment saw pod volume growth of 6.3% – driven by continued momentum in KDP’s at-home business and improving trends in its away-from-home business – and brewer volume growth of 2.2%.
In Q3, net sales for KDP’s Latin America beverages division increased 25.8% to $156 million, driven by strong volume/mix growth of 10.5%, which reflected the impact of higher marketing investment and favourable net price realisation of 4%.
The company’s beverage concentrates division also recorded double-digit sales growth in Q3 – with net sales up 11.4% on the year-ago quarter.
The beverage giant has raised its 2021 net sales guidance for the third time this year and says it now expects constant currency net sales growth of between 7-8% – up from the 6-7% growth forecast in KDP’s Q2 results.
“In the quarter, we continued to effectively manage through macro challenges to deliver strong and balanced results,” said Keurig Dr Pepper chairman and CEO, Bob Gamgort.
“Our outlook for the business remains strong, as we look forward to our next chapter of transformation and growth.”
© FoodBev Media Ltd 2023
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