Keurig Dr Pepper (KDP) has announced an increase of net sales of 5.1 per cent on an adjusted basis in the company’s Q3 report for 2023.
Net sales for the company reached US$3.81 billion in Q3 2023, compared to US$3.62 billion during the same period the year prior.
The company says the results reaffirmed its guidance for full year constant currency net sales growth of 5 to 6 per cent in 2023.
“In the third quarter, we maintained healthy revenue momentum and delivered a significant gross margin inflection, helping to fund reinvestment in our brands and capabilities,” says KDP Chairman and CEO Bob Gamgort.
Net sales for US coffee decreased by 3.2 per cent to US$1.01 billion, compared to US$1.05 billion in the year-ago period.
“In addition to continued strong results across our U.S. Refreshment Beverages and International segments, we also began to rebuild our margins in U.S. Coffee,” says Gamgort.
The figure was driven by net price realisation of 3.1 per cent and a volume/mix decline of 6.3 per cent.
Pod revenue decreased by 4.8 per cent, which the company says was driven by a shipment decline of 8.1 per cent.
The US retail dollar consumption of KDP-manufactured pods decreased by 7 per cent, with significantly stronger performance registered in untracked channels.
“Over the past 12 months, we have established new growth platforms in sports hydration, energy and RTD coffee by partnering with compelling brands and leveraging our unique distribution assets across both cold and hot beverages to attract strong partnerships,” says Gamgort.
Brewer shipments reached 10.2 million for the 12-month period ending September 30, a decrease of 4.5 per cent.
Adjusted operating income for KDP’s coffee brands increased by 5.7 per cent to US$333 million, which totalled 32.9 per cent of net sales.
“We are reaffirming our full year outlook and remain committed to delivering a strong Q4 with an improved composition of earnings,” Gamgort says.
