Keurig Dr Pepper's Q1 Bottom-Line Matches Street View; Affirms FY22 Adjusted EPS Outlook

Keurig Dr Pepper Inc KDP reported first-quarter FY22 sales growth of 6.1% year-on-year to $3.08 billion, above the consensus of $3.01 billion.
Net sales growth was driven by favorable net price realization of 6.3%, slightly offset by a lower volume/mix of 0.2%.
On a two-year basis, constant currency net sales advanced 17.5% versus 2020.
Net sales for Coffee Systems declined 4.3% Y/Y, Packaged Beverages increased 13.2%, Beverage Concentrates grew 9.5%, and Latin American Beverages climbed 16.8%.
Gross profit rose 3.1% Y/Y to $1.7 billion, with the margin at 53.6%. The operating margin was 31.4%, and operating income for the quarter jumped 50.9% to $966 million.
Adjusted EPS of $0.33 was in line with the analyst consensus.
The company held $594 million in cash and equivalents as of March 31, 2022.
“Margins were impacted by accelerating inflation, which outpaced the timing of pricing actions, and the previously discussed coffee supply chain disruption,” said Chairman and CEO Bob Gamgort.
Outlook: Keuring Dr Pepper raised FY22 constant currency net sales growth outlook to a high-single-digit range (prior view mid-single-digit range)
The company reaffirmed FY22 adjusted EPS growth guidance in the mid-single-digit range.
Price Action: KDP shares traded higher by 0.33% at $37.99 on the last check Thursday.

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