Keurig Dr Pepper's Q1 Bottom-Line Matches Street View; Affirms FY22 Adjusted EPS Outlook

  • Keurig Dr Pepper Inc KDP reported first-quarter FY22 sales growth of 6.1% year-on-year to $3.08 billion, above the consensus of $3.01 billion.
  • Net sales growth was driven by favorable net price realization of 6.3%, slightly offset by a lower volume/mix of 0.2%.
  • On a two-year basis, constant currency net sales advanced 17.5% versus 2020.
  • Net sales for Coffee Systems declined 4.3% Y/Y, Packaged Beverages increased 13.2%, Beverage Concentrates grew 9.5%, and Latin American Beverages climbed 16.8%.
  • Gross profit rose 3.1% Y/Y to $1.7 billion, with the margin at 53.6%. The operating margin was 31.4%, and operating income for the quarter jumped 50.9% to $966 million.
  • Adjusted EPS of $0.33 was in line with the analyst consensus.
  • The company held $594 million in cash and equivalents as of March 31, 2022.
  • “Margins were impacted by accelerating inflation, which outpaced the timing of pricing actions, and the previously discussed coffee supply chain disruption,” said Chairman and CEO Bob Gamgort.
  • Outlook: Keuring Dr Pepper raised FY22 constant currency net sales growth outlook to a high-single-digit range (prior view mid-single-digit range)
  • The company reaffirmed FY22 adjusted EPS growth guidance in the mid-single-digit range.
  • Price Action: KDP shares traded higher by 0.33% at $37.99 on the last check Thursday.

Posted In: BriefsEarningsNewsGuidance

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