Keurig Dr Pepper 2Q Profit Surged as It Raised Prices Furher

By Sabela Ojea

Keurig Dr Pepper said profit more-than-doubled in the second quarter, as sales rose after raising prices by over 8%.

The soft drinks company said Thursday that net profit surged to $503 million, or 36 cents a share, compared with $218 million, or 15 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings per share came in at 42 cents. Analysts polled by FactSet had forecast lower adjusted earnings per share of 40 cents.

Sales rose 6.6% to $3.79 billion. Analysts polled by FactSet had forecast lower revenue of $3.69 billion.

Keurig Dr Pepper's sales performance reflected price hikes of 8.2% in the period, offsetting a 2.1% drop in volumes.

Additionally, the company reiterated its guidance for the year.

"We saw continued momentum in the U.S. refreshment beverages and international segments, as well as encouraging intraquarter developments in U.S. coffee, where we expect a sequential recovery in revenue and a meaningful inflection in margins in the back half," Chairman and Chief Executive Bob Gamgort said.

Shares rise 0.9% to $32.84 in pre-market trading.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

July 27, 2023 07:49 ET (11:49 GMT)

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