As it welcomes new CEO Tim Cofer, Keurig Dr Pepper posted sales and earnings that surpassed Wall Street expectations.
A Yahoo Finance-published analyst consensus estimate called for earnings per adjusted diluted share of 35 cents and revenues of $3.41 billion.
Net sales were $3.47 billion versus $3.35 billion in the year-before quarter. Income from operations was $765 million compared to $584 million in the year-previous period, while adjusted income from operations was $825 million versus $699 million.
In the company’s U.S. Coffee business, first-quarter net sales slipped 2.1% to $900 million, driven by a net price decline of 1.8% and a volume/mix decline of 0.3%. K-Cup Pod shipments declined 1.1%, strengthening on a sequential basis, which reflected improving market share trends across the Keurig Dr Pepper owned and licensed portfolio. Brewer shipments totaled 10 million for the 12 months ended March 31, declining 1.9% year-over-year. In the quarter, the company added, brewer shipments grew, reflecting market share momentum and timing benefits.
In a previously announced leadership transition, Keurig Dr Pepper stated that Tim Cofer is being made CEO and a board member as Bob Gamgort shifts from chairman and CEO to executive chairman.
In announcing the financial results, Cofer said, “We have a unique and competitively advantaged business, with a significant growth opportunity that we intend to realize through our evolved strategy. I’m pleased with our strong first quarter results, which reflect consistent execution across the organization and demonstrate the health of our business. This performance underscores our confidence in our 2024 outlook, which is in line with our long-term financial algorithm.”
In commenting on the final step in the company CEO transition, which began in the fall of 2023, Gamgort said, “It has been a privilege to help establish Keurig Dr Pepper into the formidable company it is today, and I look forward to supporting its future growth as executive chairman. As KDP enters its next phase, Tim and his leadership team are activating an exciting, evolved strategy that I am confident will extend our track record of success and continue to differentiate KDP within the beverage industry.”
