(Reuters) – Keurig Dr Pepper Inc beat Wall Street estimates for quarterly results on Thursday and forecast higher annual sales, as the soda maker benefits from multiple rounds of price hikes that helped counter slowing demand due to still high inflation.
The results are the latest evidence that consumer companies have been largely able to pass on higher prices to retailers and shoppers.
The average price of 192 ounces of Keurig Dr Pepper’s soda in the U.S. rose to $8.50 in 2022 from $7.45 in 2021, according to NielsenIQ’s data. It was $9.64, as of June 17.
Shares of the Texas-based company edged up 1.1% in premarket trading.
Keurig Dr Pepper posted second-quarter revenue of $3.79 billion, topping estimates of $3.69 billion, according to Refinitiv data.
The company said it expects full-year 2023 net sales growth of 5% to 6%, compared with the previous forecast of a 5% growth. It reiterated its forecast for adjusted earnings per share growth of 6% to 7%.
In U.S. Coffee segment, “expect a sequential recovery in revenue and a meaningful inflection in margins in the back half”, CEO Bob Gamgort said in a statement.
Excluding items, the company reported a profit of 42 cents per share, compared estimates of 40 cents.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila)
