Keurig Dr Pepper on Thursday left its annual forecasts unchanged after beating analysts’ estimates for second-quarter sales and profit, helped by strength in its sodas and energy drinks portfolios even as it navigates challenging demand for coffee.
Shares of the beverage company rose about 2 per cent in premarket trading. The stock has gained nearly 10 per cent this year.
The better-than-expected results come as Keurig Dr Pepper works to reshape its business following the US$18 billion acquisition of coffee giant JDE Peet’s last August and prepares for a planned separation of its coffee operations and other beverages.
Sales in the U.S. Refreshment Beverages division, its primary growth driver, rose 10 per cent, supported by strong demand for Dr Pepper, Ghost energy drinks and Electrolit hydration products.
The company’s quarterly net sales surged 75.6 per cent to US$7.31 billion, compared with analysts’ expectations of US$7.24 billion, according to data compiled by LSEG.
It earned a profit of 57 cents per share on an adjusted basis, above expectations of 54 cents per share.
Keurig Dr Pepper expects still expects 2026 net sales in the range of US$25.9 billion to US$26.4 billion and adjusted earnings per share growth in a low-double-digit range.
(Reporting by Savyata Mishra in Bengaluru; Editing by Joyjeet Das)
