Keurig Dr Pepper recorded third-quarter earnings that beat an analyst estimate and revenues in line with expectations, as the company began to see a contribution from its April acquisition of the JDE Peet’s coffee business.
Keurig Dr Pepper’s net income in the quarter was $810 million, or 59 cents per diluted share, versus $662 million, or 49 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net income was 66 cents per diluted share versus 54 cents per diluted share in the period a year previous, the company reported.
A Zacks Investment Research analyst consensus estimate had earnings per adjusted diluted share at 63 cents and revenues at $7.36 billion.
Net sales were $7.34 billion versus $4.31 billion in the year-prior quarter. Operating income was $1.33 billion versus $995 million in the year-earlier period, while adjusted operating income was $1.67 billion versus $1.09 billion, the company stated.
In segment results, net sales at U.S. Refreshment Beverages increased 10.9% to $3.03 billion. Operating income increased 2.2% to $820 million, while adjusted operating income increased 8.3% to $884 million. U.S. Coffee net sales increased 2.7% to $1.02 billion. Operating income in the coffee segment ncreased 34.6% to $319 million, while adjusted operating income increased 11.4% to $353 million.
The contribution from the JDE Peet’s operation, which Keurig Dr Pepper acquired in April, included third-quarter net sales of $2.6 billion, with operating income at $289 million and adjusted operating income at $480 million.
Keurig Dr Pepper reaffirmed its full-year guidance. The previously announced outlook was for net sales of $25.9 billion to $26.4 billion in the current fiscal year, and constant currency adjusted diluted EPS growth in the low-double-digit range
In announcing the financial results, CEO Tim Cofer said, “We are pleased with our third quarter results, which featured meaningful net sales and EPS growth, along with healthy free cash flow. Our refreshment beverages portfolio maintained its double-digit sales growth momentum, and we drove solid results in coffee, led by strong JDE Peet’s profitability. Notably, we achieved these results while stepping up investment behind our brands and capabilities to position our two future companies for success. As we enter the final stretch of the year, we are on track to deliver our 2026 financial commitments and we remain focused on achieving the remaining milestones to enable our planned separation.”
