Keurig Dr Pepper earnings on track

Financial results from Keurig Dr Pepper (KDP) showed a 5.1 per cent increase in sales to US$2.87 billion during its third quarter this year.

According to the beverage company, earnings were impacted by the merger between Keurig Green Mountain and Dr Pepper Snapple Group, which was completed in July 2018.

Sales of packaged beverages grew 5.6 per cent to $1.31bn, compared with $1.24 million in the same period last year, primarily as a result of the merger. Sales were driven by brands such as Core Hydration, Canada Dry, Dr Pepper, Motts, Sunkist and A&W. However, sales in Bai fell.

KDP now expects to announce a full year sales growth of 3 per cent, which is at the high end of the company’s long-term merger target of 2-3 per cent, reflecting the stronger performance of core brands.

“KDP’s third quarter results continued to track well with the ambitious long-term targets we established nearly two years ago,” said Bob Gamgort, KDP’s chairman and chief executive. “Healthy underlying growth in all four segments, combined with margin expansion, enabled strong earnings growth, cash generation and continued debt reduction.”