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Keurig Dr Pepper (KDP) has posted an 11.8% increase in third-quarter sales on a constant currency basis, driven by favourable net price realisation of 12.1%. The company has reaffirmed its full-year guidance after all of its units grew their net sales during the three months ended 30 September.
KDP's beverage concentrates and Latin America beverages segments recorded net sales growth of 17.3% and 28.8% respectively, on a constant currency basis. Sales growth for the latter unit – which also posted an increase in volume/mix of 11.5% – was led by Peñafiel, Clamato, Mott's and Squirt. Meanwhile, KDP’s largest segments – coffee systems and packaged beverages – recorded constant currency net sales growth of 5.2% and 13.6% respectively, with volume/mix slightly down or stable.
The soft drinks giant’s Q3 GAAP operating income decreased 50.4% to $394 million, primarily reflecting a $311 million non-cash impairment charge on the Bai brand. KDP has also announced the appointment of Sudhanshu Priyadarshi as the company's new CFO, after its former finance chief Ozan Dokmecioglu was promoted to CEO.
Most recently CFO at Vista Outdoor, Priyadarshi – who has also previously held senior-level finance roles at Walmart and PepsiCo – will take up the position on 14 November. “Sudhanshu's impressive financial management experience at leading companies, combined with his strategic and operational savvy, makes him the ideal executive for this critical role,” said Dokmecioglu.
Commenting on KDP’s results, Dokmecioglu stated that the quarter was “another strong one” for the company, adding: “While the macro landscape remains challenging, our cold beverages portfolio continues to perform exceptionally well, with strong in-market execution and increased marketing investment driving consistent growth in LRB market share”.
“At the same time, our coffee business has steadily recovered from the significant supply chain disruption earlier this year and is poised to deliver strong sales and earnings growth in the fourth quarter.”