The first quarter saw sales and earnings gains at Keurig Dr Pepper, as reported by the company, which noted that Bob Gamgort has assumed a new board role as the company welcomed two new independent directors.
For the quarter, net income was $517 million, or 38 cents per diluted share, versus 454 million, or 33 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net income was $568 million, or 42 cents per diluted share, versus $530 million, or 38 cents per diluted share, in the year-previous period, the company reported.
An analyst consensus estimate from Zacks Investment Research projected adjusted diluted earnings per share of 38 cents and revenue of $3.56 billion.
Net sales were $3.64 billion versus $3.47 billion in the year-earlier quarter. Income from operations was $801 million compared to $765 million in the year-prior period, while adjusted operating income was $847 million versus $825 million.
Net sales for the U.S. Coffee segment decreased 3.7% to $900 million in the quarter, Keurig Dr Pepper indicated. A volume/mix decline of 5.2% outweighed a favorable net price realization of 1.5%. The timing of category pricing actions implemented in response to escalating green coffee costs impacted volume and mix trends in the quarter. GAAP operating income decreased 18.5% to $202 million while adjusted operating income declined 12.5% to $253 million. GAAP and adjusted operating income reflected the net sales decline and the effect of inflationary pressures, which more than offset productivity savings, the company maintained.
Tim Cofer, Keurig Dr Pepper CEO said in announcing the financial results, said, “Our first quarter performance represented a strong start to the year. We delivered healthy top- and bottom-line growth, driven by momentum in key categories and brands, high-quality commercial execution, and disciplined expense management. We also advanced our strategic initiatives and evolved KDP’s leadership and governance, which continued with today’s addition of two new independent directors to our board of directors. Our reaffirmed full-year outlook incorporates our latest view of changing market conditions, and we expect another solid year of growth in 2025.”
