Third-quarter sales and earnings advanced at Keurig Dr Pepper with help from gains in single-serve brewer shipments.
Net income was $616 million, or 45 cents per diluted share, versus $518 million, or 37 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, net income was $694 million, or 51 cents per diluted share, versus $673 million, or 48 cents per diluted share, in the year-prior period, the company noted.
An analyst consensus estimate published by Yahoo Finance was for earnings of 51 cents per adjusted diluted share and revenue of $3.93 billion.
Keurig Dr Pepper net sales for the third quarter increased 2.3% to $3.89 billion. On a constant currency basis, net sales advanced 3.1%, driven by volume/mix growth of 3.5%, partially offset by modestly unfavorable net price realization of 0.4%, the company reported.
Operating income advanced 0.7% to $902 million year over year, while adjusted operating income increased 7.5% to $1.05 billion. Adjusted operating income growth primarily reflected net productivity savings and disciplined overhead expense management, Keurig Dr Pepper noted, partially offset by impact of inflation.
U.S. Coffee segment net sales for the third quarter decreased 3.6% to $976 million. K-Cup pod shipments decreased 0.4%, reflecting owned and licensed market share increases in a still-muted at home coffee category, the company maintained.
Brewer shipments, meanwhile, totaled 10.5 million for the 12 months ending September 30, up 3.3% year-over-year, supported by stabilizing coffeemaker category trends and continued Keurig market share momentum, according to Keurig.
Operating income decreased 13.3% to $254 million year over year, while adjusted operating income decreased 7.2% to $309 million.
Keurig Dr Pepper CEO Tim Cofer stated, “Three quarters into the year, we remain on track to achieve our full-year outlook, while notching significant progress against our multi-year strategic agenda. This morning’s exciting announcement of our acquisition of Ghost is yet another such step, accelerating our portfolio evolution toward growth-accretive and consumer-preferred spaces. In Q3, we were encouraged by further improvement in our volume/mix performance despite a muted operating environment and also demonstrated building cost discipline throughout the organization. Both are important elements underpinning our confidence as we focus on a strong finish to 2024 and plan for a healthy 2025.”
