By Dave Sebastian
Keurig Dr Pepper Inc. said its profit and sales rose for the September quarter, driven by at-home consumption of K-Cup coffee and packaged beverages during the Covid-19 pandemic.
The Burlington, Mass., company, which makes office coffee systems and Dr Pepper soda, on Thursday posted third-quarter net profit of $443 million, or 31 cents a share, compared with $304 million, or 21 cents a share, in the comparable quarter last year.
Adjusted earnings were 39 cents a share. Analysts polled by FactSet had been expecting adjusted earnings of 37 cents a share.
Revenue rose 5.2% to $3.02 billion, the company said. Analysts had been looking for $2.96 billion. Covid-19-related operating costs were $49 million, the company said.
The company booked double-digit dollar growth in K-Cup coffee pods, leading coffee systems sales to rise 3% to $1.1 billion. Sales of packaged beverages rose 10.7% to $1.45 billion, driven by Dr Pepper, Snapple and other soft drinks, partially offset by a decline in Bai antioxidant beverages.
Beverage-concentrate sales fell 2.2% to $352 million, as restaurants have been operating with limited capacity during the pandemic. Sales of Latin America beverages fell 10.1% to $124 million.
The company said it continues to expect adjusted earnings of $1.38 to $1.40 a share for the year, with sales growth at the high end of a 3%-to-4% range on a constant-currency basis.
For the first nine months of the year, sales and adjusted per-share earnings were up 3.8% and 16%, respectively, it said.
Shares rose 1% in premarket trading.
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires