Keurig Dr Pepper Inc. KDP reported second-quarter FY23 sales growth of 6.6% year-on-year to $3.789 billion, beating the consensus of $3.690 billion.
Adjusted EPS of $0.42 beat the consensus of $0.40.
The resilient volume/mix performance reflected the continued strength of the company's brand portfolio and in-market execution, as well as continued modest elasticities across most categories.
Also Read: Keurig Dr Pepper Invests $300M In Coffee Roaster La Colombe - What's On The Cards?
Net sales for U.S. Refreshment Beverages grew 11.8%, U.S. Coffee decreased 5.7%, and International climbed 10.9%.
Gross profit increased 14.9% to $2.04 billion, with the margin at 53.9%. Adjusted operating margin was 23% in the quarter under review.
The company held $278 million in cash and equivalents as of June 30, 2023.
CEO and Chairman Bob Gamgort said, "On a consolidated basis, we continue to drive healthy growth while reinvesting in our business and are increasingly confident in our full year outlook, which now reflects even stronger underlying EPS results."
Outlook: Keurig Dr Pepper raised its FY23 guidance for constant currency net sales growth to 5%-6% (prior view: 5%).
The company reiterated Adjusted EPS growth of 6%-7%.
Price Action: KDP shares traded higher by 4.32% at $33.94 on the last check Thursday.
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