Keurig Dr Pepper slips after slight miss on the revenue line
George Frey

Keurig Dr Pepper (NASDAQ:KDP) reported sales rose 11.4% in Q3 to $3.62B. Notably, all four of the company's segments grew sales during the quarter.
KDP said the sales growth was driven by favorable net price realization of 12.1%, which was only slightly offset by lower volume/mix of 0.3%. A strong KDP portfolio and continued strong in-market execution were said to have helped the prices increases across products be absorbed. KDP in-market performance in the Liquid Refreshment Beverages category also stood out with retail dollar consumption advancing 11.2%.
"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."
KDP also noted that the 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 Q4.
Adjusted operating income increased 2.0% in the quarter to $947M. Broad-based inflationary pressures in transportation, warehousing and retail labor, as well as increased marketing investment all were drags during the quarter. Adjusted operating income came in at 26.1% of sales.
Looking ahead, KDP reaffirmed its 2022 guidance for constant currency sales growth in the low-double-digit range, as well as adjusted EPS growth in the mid-single-digit range.
Shares of Keurig Dr Pepper (KDP) fell 1.01% in premarket trading on Thursday after the slight miss on the revenue line.