Keurig Dr Pepper reported third-quarter adjusted earnings of 66 cents per share and sales of $7.34 billion, beating analyst estimates of 62 cents and $7.33 billion. It reaffirmed its annual forecast, with net sales of roughly $8.3 billion to $8.4 billion.
Keurig Dr Pepper beat third-quarter estimates, with adjusted profit of 66 cents per share and sales up 70.6% year over year to $7.34 billion. Analysts had expected 62 cents per share and sales of $7.33 billion.
Volumes in its domestic refreshment beverages segment rose 7.2% from a year earlier, while prices increased 3.7%. US coffee volumes grew 6.9%, after declining 4% a year earlier. CEO Tim Cofer said the refreshment beverages portfolio maintained double-digit sales growth momentum and coffee delivered solid results.
The company reaffirmed its annual forecast for the third time this fiscal year, including roughly $8.3 billion to $8.4 billion in net sales and a 7-to-8-percentage-point earnings-per-share growth contribution from the JDE Peet's acquisition. Quarterly gross margin fell to 48% from 54.3%, reflecting inflationary pressures and higher expenses such as marketing; a $99 million tariff-refund benefit partly cushioned the impact.
