Keurig Dr Pepper Q3 EPS Stands In-Line, Revenue Tops Consensus

Keurig Dr Pepper Inc KDP reported third-quarter FY21 sales growth of 7.6% year-on-year, to $3.25 billion, beating the analyst consensus of $3.16 billion.
On a constant currency basis, net sales advanced 6.8%, reflecting a higher volume/mix of 3.2% and a favorable net price realization of 3.6%.
Net sales for Coffee systems rose 5.3% Y/Y, Packaged beverages increased 6.9%, Beverage Concentrates grew 11.4%, and Latin American Beverages climbed 25.8%.
Gross profit rose 7.7% Y/Y to $1.8 billion, with the margin at 56.5%. The operating margin was 24.5%, and operating income for the quarter rose 5.6% to $795 million.
Adjusted EPS of $0.44 was in line with the analyst consensus estimate.
The company held $203 million in cash and equivalents as of September 30, 2021. Free cash flow totaled $676 million for the quarter.
Outlook: Keuring Dr Pepper raised FY21 constant currency net sales growth outlook to 7% - 8% (prior view 6% - 7%).
The company reaffirmed FY21 adjusted EPS growth guidance of 13% - 15%.
Price Action: KDP shares traded higher by 3.23% at $35.31 on the last check Thursday.

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