Keurig Dr Pepper Inc. KDP shares are trading higher after reporting second-quarter results.
The company reported adjusted earnings per share of 45 cents, which aligned with the street view. Quarterly sales of $3.92 billion marginally beat the analyst consensus estimate of $3.915 billion.
Net sales for the second quarter increased 3.5%. On a constant currency basis, net sales advanced 3.4%, driven by volume/mix growth of 1.8% and higher net price realization of 1.6%.
“Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market — all underpinned by an unrelenting focus on cost efficiency and capital discipline,” said CEO Tim Cofer.
Adjusted operating income increased 11.0% to $970 million and totaled 24.7% as a percent of net sales, reflecting the benefits of higher net price realization and net productivity.
Also Read: Dr Pepper Overtakes Pepsi To Become America’s Second Favorite Soda Behind Coca-Cola
Operating cash flow for the second quarter was $657 million , and free cash flow totaled $543 million.
U.S. Refreshment Beverages net sales increased by 3.3% to $2.4 billion, U.S. Coffee net sales decreased by 2.1% to $1.0 billion, and International net sales for the second quarter increased by 15.5% to $0.6 billion.
“Now halfway through 2024, we are on track to achieve our unchanged full year outlook, while also seeding initiatives to fuel consistent growth over multiple years,” Cofer added.
Outlook: KDP reaffirmed its fiscal 2024 guidance for constant currency net sales growth in a mid-single-digit range and Adjusted EPS growth in a high-single-digit range.
Price Action: KDP shares are trading higher by 1.75% to $33.35 at last check Thursday.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
