Keurig Dr Pepper's Q3 Revenue Misses By A Whisker; Reaffirms FY22 Forecast

  • Keurig Dr Pepper Inc KDP reported third-quarter FY22 sales growth of 11.4% year-on-year to $3.62 billion, missing the consensus of $3.63 billion.
  • Net sales for Coffee systems grew 4.7%, Packaged beverages increased 13.5%, Beverage Concentrates gained 17.1%, and Latin American Beverages climbed 26.9%.
  • Gross profit increased 3.6% to $1.9 billion, with the margin at 52.5%. The operating margin was 10.8%, and operating income for the quarter declined 50.4% to $394 million.
  • Adjusted EPS of $0.46 was in line with the Street view.
  • The company held $928 million in cash and equivalents as of September 30, 2022.
  • CEO Ozan Dokmecioglu, said, "While the macro landscape remains challenging, our cold beverages portfolio continues to perform exceptionally well, with strong in-market execution and increased marketing investment driving consistent growth in LRB market share. At the same time, our coffee business has steadily recovered from the significant supply chain disruption earlier this year and is poised to deliver strong sales and earnings growth in the fourth quarter." 
  • Outlook: Keurig Dr Pepper reaffirmed its full-year guidance for constant currency net sales growth in the low-double-digit range and Adjusted EPS growth in the mid-single-digit range.
  • Price Action: KDP shares traded lower by 2.97% at $37.61 on the last check Thursday.
  • Photo Via Company
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