Keurig Dr Pepper Beats On Q1 Aided By Standout Performance In US Refreshment Beverages

Keurig Dr Pepper Inc KDP reported first-quarter FY23 sales growth of 8.9% year-on-year to $3.35 billion, beating the consensus of $3.30 billion.
Net sales for U.S. refreshment beverages grew 12.7%, U.S. Coffee decreased 1.3%, and International climbed 17.2%.
Gross profit increased 5.7% to $1.7 billion, with the margin at 52%. The operating margin was 17.4%, and operating income for the quarter declined 39.5% to $584 million.
Adjusted EPS of $0.34 beat the consensus of $0.33.
The company held $204 million in cash and equivalents as of March 31, 2023.
CEO and Chairman Bob Gamgort, said, "Though the at-home coffee category is still cycling through mobility-related changes relative to last year, single serve continues to gain volume share of the U.S. category."
Outlook: Keurig Dr Pepper reaffirmed its FY23 guidance for constant currency net sales growth of 5% and Adjusted EPS growth of 6%-7%.
Price Action: KDP shares traded lower by 5.17% at $33.67 on the last check Thursday.

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