Keurig Dr Pepper third quarter sales double thanks to new merger

Keurig Dr Pepper (KDP) has reported that its net sales in the third quarter of 2018 more than double the US$2.73 billion, compared to US$1.14 billion in the same period last year. The company attributed its improved financial results to the successfully completed merger of Keurig Green Mountain and Dr Pepper Snapple Group, effective 9 July, 2018. “We're off to a great start as a combined company. Our new organisation is working well and delivered a strong quarter, with both top– and bottom–line growth and market share strength across our major categories,” KDP CEO Bob Gamgort says. “We also repaid approximately US$550 million of debt since the merger close.  We remain confident in our outlook for 2018 and the long-term value creation framework we shared at the time of the announcement of the merger.” Operating income increased 45 per cent to US$344 million, compared to US$238 million in the the same period last year. Net income increased approximately 28 per cent to US$148 million, compared to US$116 million in the year-ago period.  KDP says its coffee portfolio performed well in the quarter, driven by single-serve pod category unit growth, combined with an increase in market share of pods KDP manufactures.  Net sales for KDP’s coffee systems were US$1053 million in the third quarter of 2018, compared to US$1140 million in the year-ago period which included an extra shipping week. KDP attributes its net sales growth in the third quarter to a volume growth of approximately three per cent for pods and eight per cent for brewers, as well as higher brewer pricing due to innovation. Operating income for KDP’s coffee systems in the third quarter of 2018 advanced 16 per cent to US$334 million, compared to US$288 million in the year-ago period.